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The company logo is shown at the headquarters of Oracle Corporation in Redwood City, California February 2, 2010.
Credit: Reuters/Robert Galbraith
Tue Sep 20, 2011 4:42pm EDT
(Reuters) - Oracle Corp posted quarterly revenue slightly above Wall Street expectations, defying a weak outlook for global technology spending.
New software sales, a gauge of future profit because they generate high-margin long-term service contracts, rose 17 percent compared with analysts' expectations for 15 percent.
Oracle, which competes with SAP in selling software to corporations and public agencies, reports results a month before its rivals -- giving investors a peek at July and August this year -- and is watched for the latest insights into industry trends.
The company run by flamboyant Silicon Valley billionaire Larry Ellison on Tuesday reported revenue of $8.37 billion in the fiscal first quarter ended August. This is just a touch ahead of Wall Street's target of $8.35 billion and up 12 percent from $7.50 billion in the year-ago period.
Net income came to $1.84 billion, or 36 cents share, up from $1.35 billion, or 27 cents a share, in the same quarter the year before. Excluding unusual items it earned 48 cents per share compared with analysts' expectations for 46 cents a share, according to Thomson Reuters I/B/E/S.
The company also announced a quarterly cash dividend of 6 cents per share to be paid November 2.
The outlook for worldwide technology spending has darkened after warnings by bellwether technology vendors from Dell Inc to Cisco Systems Inc. Governments are scaling back purchases to reduce deficits while corporations are tightening budgets to cope with a worsening economic picture.
Net income came to $1.84 billion, or 36 cents share, up from $1.35 billion, or 27 cents a share, in the year-ago quarter.
Shares in the world's No. 3 software maker rose 1 percent in extended trading, after closing down 2 percent at $28.35 on Nasdaq.
(Reporting by Sinead Carew in New York and Edwin Chan in Los Angeles; Editing by Richard Chang)
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We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
Comments (1)
avgprsn wrote:
This is where lines get muddled.
Quote:
“The outlook for worldwide technology spending has darkened after warnings by bellwether technology vendors from Dell Inc to Cisco Systems Inc.”
The technology industry is quite a broad term.
Earlier this year people were speaking about the Dotcom 2.0 boom in California and how in a few months investment has over taken the 1999-2000 original bubble…
Stocks are going to take roller coaster rides, otherwise why even wonder on value over time?
To take a few key large players and put the spotlight on the current stock outlook makes very little sense, except to either get investors jittery or excited.
Where is the comparisons with these other companies that “move and shake” just as much?
I’m glad to see Oracle doing well, but really, all in all this industry is meant to evolve at rates that have nothing to do with other comparable markets – there should never be anything static with technology as might be seen in things like commodities.
IE:
As fast as one falls, two more come in from left field to expound on the opportunity. Just look at the Nortel yard sale.
Sep 20, 2011 4:23pm EDT -- Report as abuse
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