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Oracle Stock Plunges After Earnings Miss

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A view of Oracle headquarters in Redwood Shores. (Justin Sullivan/Getty Images)

A view of Oracle headquarters in Redwood Shores. (Justin Sullivan/Getty Images)

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REDWOOD SHORES (CBS/AP) — Shares of Oracle plummeted in Thursday trading a day after the enterprise software giant reported earnings that missed analysts’ expectations by a wide margin.

At midday trading Thursday, Oracle was down more than eight percent after earlier falling as much as 10 percent.

Oracle reported flat earnings for its fiscal third-quarter, hurt by a drop in sales of hardware systems and new software.

Revenue from new software licenses and online or “cloud” subscriptions, a closely watched figure, fell 2 percent year-over-year to $2.3 billion. Sales of hardware systems products dropped 23 percent.

Oracle earned $2.5 billion, or 52 cents per share, in the December-February quarter. That compares with $2.5 billion, or 49 cents per share, in the same period a year earlier, when it had more shares outstanding. Adjusted earnings totaled 65 cents per share in the latest quarter.

Revenue fell 1 percent to $8.96 billion from $9.04 billion, hurt in part by the stronger dollar.

Analysts polled by FactSet had expected earnings of 66 cents per share, excluding charges for past acquisitions and other costs, on revenue of $9.38 billion.

Oracle also warned that revenue from its hardware business will continue losing ground during this quarter.

(Copyright 2013 by CBS San Francisco. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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