Strong dollar puts downward pressure on Oracle sales in third quarter
Blow to investors.
Oracle Corporation has reported total revenues of $8.96bn for the third quarter ending 28 February 2013, a decrease of 1 per cent compared to the same period last year, which it attributes to currency fluctuations.
Net income was unchanged at $2.5bn, while earnings per share grew by 5 per cent to $0.65.
During the quarter, sales of the company’s new software licences and cloud subscriptions declined by 2 per cent to $2.3bn compared to same quarter last year. Hardware sales fell by 16 per cent, compared to the third-quarter of 2012.
Safra Catz, chief finance officer, told analysts that the company was “not at all pleased with our revenues this quarter”. “There’s no really new news on the economy,” Catz added.
During the past 18 months, the company added more than 4,000 people to its sales force.
For the fourth quarter, the company expects total revenues to shrink by 1 per cent or grow as much as 4 per cent. Larry Ellison, CEO of Oracle, said: “Next year will be a big growth year for our entire hardware business.”
Oracle shares fell by 8.2 per cent after the New York close at $32.83.
In February, Oracle agreed to acquire security communications technology provider Acme Packet for $2.1bn in an effort to increase its presence in the area of cloud computing.