Oracle’s new software sales disappoint

Thursday, June 20th, 2013 | Finance News

By Noel Randewich

SAN FRANCISCO (Reuters) - Oracle Corp reported a 1 percent increase to $4 billion in new software sales and Internet-based software subscriptions for the quarter, at the low end of its own forecasts, sending its shares sharply lower.

The company, the world's No. 3 software maker, had forecast a 1 percent to 11 percent rise in new software license and cloud subscription revenue for its fiscal fourth quarter. Investors scrutinize new software sales because they generate high-margin, long-term maintenance contracts and are an important indicator of future profit.

The software company also said on Thursday that it doubled its quarterly dividend to 12 cents a share.

It said it applied to list its stock on the New York Stock Exchange and would eventually remove it from Nasdaq.

Overall, Oracle's revenue was unchanged at $10.9 billion, missing the $11.122 billion analysts had expected on average according to Thomson Reuters I/B/E/S.

GAAP net profit was up 10 percent at $3.8 billion. GAAP earnings per share were 80 cents. Its adjusted earnings per share were 87 cents.

Shares in the software company fell 4.67 percent to $31.64 after hours after closing down 2.58 percent on Nasdaq.

(Reporting by Noel Randewich; Editing by Steve Orlofsky and Phil Berlowitz)