Oracle Quarterly Profit Jumps; Server Business Declines
REDWOOD SHORES (CBS/AP) – Stronger spending on business software helped Oracle’s quarterly profit jump 36 percent, but the company’s server business continued to deteriorate, which the company said is happening because it is shedding lower-margin deals.
Redwood Shores-based Oracle said after the market closed Tuesday that its net income rose to $1.84 billion, or 36 cents per share, compared with $1.35 billion, or 27 cents per share, a year earlier.
Its adjusted net income was 48 cents per share, a penny higher than the average forecast of analysts polled by FactSet.
Revenue rose 12 percent to $8.37 billion, slightly exceeding the $8.36 billion that analysts expected.
Revenue from new software licenses rose 17 percent to $1.5 billion, which was the top end of the range Oracle had predicted.
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