Oracle Sales Miss Estimates as Demand Wanes for Older Products

By
  • Brian Womack
Published
  • September 16 2016, 6:30am EDT

(Bloomberg) -- Oracle Corp. reported quarterly revenue that fell short of analysts’ estimates, highlighting its struggles to transition to new cloud-based services amid the sluggish performance of its traditional database and business software.

Key Points

  • •First fiscal-quarter revenue declined 1.7 percent to $8.6 billion, falling short of estimates of $8.7 billion. Cloud revenue increased 59 percent in the quarter ended Aug. 31.
  • •Profit excluding certain items was 55 cents a share in the period. Analysts on average had forecast profit of 58 cents.
  • •Shares fell 1.6 percent in extended trading after closing at $40.86 in New York.

The Big Picture
Oracle, while revamping its products, is searching for new ways to spark growth as it comes under growing pressure form rivals such as Microsoft Corp. and Salesforce.com Inc. for customers who prefer cloud-based software.

In July, the Redwood City, California-based company stepped up that effort when it agreed to buy cloud-service provider NetSuite Inc. for $9.3 billion, one of Oracle’s biggest deals one record.

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