Oracle posts lower profits, revenue up 6 percent

Company reports fiscal second-quarter results that saw revenue climbing 6 percent, but net income shrinking.

Oracle reported Thursday a 6 percent rise in fiscal second-quarter revenue over last year, fueled by growth in software sales and its support and maintenance business.

Net income for the quarter, however, declined 1 percent to $1.3 billion, or 25 cents a share, for the period ending November 30, compared with the previous year. Excluding special items, Oracle posted non-GAAP net income of $1.7 billion, or 34 cents a share. That was below Oracle's September forecast of 35 cents to 36 cents a share.

Oracle was up less than 1 percent in after-hours trading to $16.70 a share. Investors may have seen some encouragement in its growth in software sales.

The company, which had previously issued a forecast of a 2 percent to 12 percent rise in new software sales, posted an 8 percent increase to $4.5 billion in the quarter.

Another growth area running counter to the downturn in the economy included its steady-as-she-goes support and maintenance revenue, which rose 14 percent to $2.9 billion.

But new software license revenue, a metric that investors tend to keep a close eye on as a means to gauge future growth for the company, fell 3 percent to $1.6 billion. Oracle's services revenue also fell, slipping 2 percent to $1.1 billion.

About the author

    Dawn Kawamoto covered enterprise security and financial news relating to technology for CNET News.


    Discuss Oracle posts lower profits, revenue up 6...

    Conversation powered by Livefyre

    Show Comments Hide Comments
    Latest Articles from CNET
    Fashion forward: Yahoo acquires social-shopping site Polyvore