Oracle net rises 4%, but sales drop hits stock

SAN FRANCISCO -- Oracle's profit rose 4% in the latest quarter, matching Wall Street's forecasts Wednesday, despite a drop in sales that revealed businesses are still being tightfisted about buying new software.

The sales figure was short of analysts' expectations, and Oracle's shares fell.

The company's results, reported after the market closed, reflect a familiar pattern that has emerged during the recession.

The rise in support work helped lift Oracle's net income for the June-August quarter to $1.12 billion, or 22 cents s share, vs. $1.08 billion, or 21 cents a share, in the same quarter a year ago.

Excluding one-time items, profit was 30 cents a share, matching the average estimate of analysts polled by Thomson Reuters.

Sales fell 5% to $5.05 billion, short of expectations for $5.25 billion.

The stock fell 71 cents, or 3.2%, to $21.42 in after-hours trading, likely on disappointment about the revenue shortfall. Shares had closed down 53 cents at $22.13 during the regular session.