- Associated Press - Tuesday, December 20, 2011

SAN FRANCISCO (AP) - Oracle’s quarterly earnings missed analyst estimates as the business software maker struggled to close deals, signaling possible trouble ahead for the technology sector.

The performance announced Tuesday covered a period of economic turbulence that has raised concerns that major companies and government agencies may curtail technology spending.

Oracle’s results for the three months ending in November suggested the cutbacks have already started. The showing alarmed investors, causing Oracle Corp. shares to slide nearly 8 percent.

In a telling sign of weakening demand, Oracle’s sales of new software licenses edged up just 2 percent from the same time last year. Analysts had expected a double-digit gain in new software licenses. Wall Street focuses on this part of the business because selling new software products generates a stream of future revenue from maintenance and upgrades.

The company earned $2.2 billion, or 43 cents, for share for the three months ending in November. That was a 17 percent increase from net income of $1.9 billion, or 37 cents per share at the same time last year.

If not for certain items, Oracle said it would have earned 54 cents per share. That figure fell below the average estimate of 57 cents per share among analysts polled by FactSet.

Revenue for the period edged up 2 percent from last year to $8.8 billion. Analysts, on average, had projected revenue of $9.2 billion.

Oracle’s shortcomings in its fiscal second quarter could mean management’s guidance for the three-month period ending in February will be a letdown too. The company is expected to provide its outlook during a conference call later Tuesday.

The company’s shares shed $2.28, or 7.8 percent, to $26.89 in extended trading after the results for the latest quarter were released. The stock has been sagging since hitting $36.50 in May.

Copyright © 2018 The Washington Times, LLC.

The Washington Times Comment Policy

The Washington Times is switching its third-party commenting system from Disqus to Spot.IM. You will need to either create an account with Spot.im or if you wish to use your Disqus account look under the Conversation for the link "Have a Disqus Account?". Please read our Comment Policy before commenting.

 

Click to Read More

Click to Hide