Oracle Income Flatlines: Hardware, Services Still Hurting
Total revenue in Oracle's software division increased 3.6 percent, but income in its services and hardware groups each fell more than 9 percent.Oracle, which is seeing some of its business level off—and in some cases erode—in the face of less-expensive cloud-based competition, on June 20 reported a tidy profit to go with flat overall income for the financial quarter that ended May 31. Its stock price took a fall after the session close, slipping an alarming 8 percent to $30.59, most likely because revenue is not showing signs of growth. In its Q4 2013 report, Oracle revealed a profit of $3.81 billion (80 cents per share), which was up from $3.45 billion (69 cents a share) a year earlier. Revenue edged up one-third of a percent to $10.95 billion. Per-share earnings rose to 87 cents from 82 cents a year ago. Oracle had projected adjusted earnings of 85 cents to 91 cents a share and revenue to range from a decline of 1 percent to growth of 4 percent.
Total revenue in Oracle's bread-and-butter software division increased 3.6 percent, but income fell more than 9 percent in its services and hardware groups each—services 9.5 percent, hardware 9.3 percent.