Oracle tops forecasts despite sales, profit dip
SAN FRANCISCO -- Software maker Oracle's results for its latest quarter topped Wall Street's forecast Tuesday, despite a 5% drop in sales and a 7% decline in profit.
The company blamed the declines on the effects of a stronger dollar — which makes deals done in other currencies translate into fewer greenbacks. Companies also have been shelling out less for new software because of the recession.
"It's kind of hard to complain, isn't it?" said Patrick Walravens, an analyst with JMP Securities. "Flawless might be a bit strong, but I think it was better than just about anybody expected. ... The big question is, now what?"
There weren't any big surprises in Oracle's guidance, which is a good thing considering the uncertainty about the economy. Oracle offered a sales forecast for the current quarter that was slightly better than expected, while its profit forecast was within the expected range.
The stock was up 51 cents, or 2.6%, to $20.38 in after-hours trading. During the regular session, before the results were announced, Oracle shares closed down 10 cents at $19.87.
Oracle, which is based in Redwood Shores, said that its net income from March through May was $1.89 billion, or 38 cents per share. In the same period last year, it was $2.04 billion, or 39 cents per share.
Excluding stock-based compensation and one-time items, Oracle said it earned 46 cents per share, which was 2 cents better than the average estimate of analysts polled by Thomson Reuters.
Sales fell to $6.86 billion, nearly $400 million better than the analyst estimate.
Sales of new software licenses fell 13% to $2.74 billion, indicating that Oracle's customers are being tightfisted about upgrading their computer systems with new programs.
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