Oracle’s Profit Jump Fails to Halt Share Drop

Regardless of the 42 percent increase in quarterly profit Oracle reported on Monday, its share price drooped down by 4 percent due to less-than-expected growth in its flagship database business, The New York Times reports.

Redwood Shores, Calif.-based Oracle reported that it made $765 million, or 14 cents per share, up more than 40 percent, or 10 cents a share, from the $540 million reported a year ago, according to The Times.

Not including one-time expenses like acquisition costs, Oracle made 19 cents per share, compared to the 18 cents per share predicted by analysts, The Times reports.

The company posted the results after market trading closed on Monday, and during after-hours trading its stock dropped by 51 cents, to $13.21 a share, according to The Times.

For the period ending on Feb. 28, the third fiscal quarter for Oracle, sales were $3.47 billion, up from $2.95 billion a year earlier, The Times reports.

Oracle’s database business licensing sales increased by only 5 percent over a year, up to $827 million, disappointing analysts—and investors—who’d predicted a jump of 9 percent, according to The Times.

“I think people were hoping for more,” Richard Sherlund, a Goldman Sachs analyst, told The Times. “It’s not really clear why they’re not showing a little more strength in that business.

Oracle competes with IBM in the database space, and its related business draws roughly 75 percent of the company’s total revenue, according to The Times.

For related coverage, read Oracle to Set Up Shop Across China, Oracle Offers Stand-Alone Enterprise Search Product and Late Release for Oracle XE Database.

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