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Software sales drop, but Oracle beats expectations

Oracle reported a 13 per cent dip in new software sales Tuesday, but posted quarterly financial results that were ahead of analyst expectations.

Oracle remained profitable, posting net income of US$1.9 billion, or US$0.38 per share, on US$6.9 billion in revenue for the quarter, ended May 31. Excluding one-time charges, Oracle reported US$0.46 per share, beating expectations of analysts, who had been looking for earnings of US$0.44 per share on about US$6.5 billion in revenue, according to a survey done by Thomson Reuters.

While overall revenue was down five per cent from the same quarter last year, Oracle said that it was pleased with the results, especially in Europe, where the company’s applications business grew by five per cent.

“We executed substantially better than we expected,” said Oracle CFO Jeff Epstein in a statement.

Oracle said that its results would have been stronger if not for weakening international currencies.

Overall software revenue, including new licenses, updates and product support, was down three per cent for the quarter, totaling US$5.8 billion, Oracle said.