Oracle’s Revenue Misses Estimates

Key Speakers At The Oracle OpenWorld 2014 Conference
Larry Ellison, chairman of Oracle Corp., speaks during the Oracle OpenWorld 2014 conference in San Francisco, California, U.S., on Tuesday, Sept. 30, 2014. Oracle Corp. joins the cloud wars for commodity services that are being waged between Amazon, Microsoft and Google -- the three largest cloud providers. Photographer: David Paul Morris/Bloomberg via Getty Images
Bloomberg Bloomberg via Getty Images

(Reuters) – Oracle reported lower-than-expected quarterly revenue as growth in its cloud-based offerings failed to make up for weakness in its traditional software licensing business.

Sales of Oracle’s cloud software and platform as services rose 77% to $798 million, while sales of its new software licenses fell 10.5% to $1.03 billion.

The company in July agreed to buy NetSuite (N) for $9.3 billion to better compete with nimbler rivals such as Workday Inc and Inc that specialize in cloud-based offerings.

Oracle’s net income rose to $1.83 billion, or 43 cents per share, in the first quarter ended Aug. 31 from $1.75 billion, or 40 cents per share, a year earlier.

Excluding items, Oracle earned 55 cents per share.

Total revenue edged up 1.7% to $8.6 billion.

Analysts on average had expected quarterly revenue of $8.7 billion and a profit of 58 cents per share, according to Thomson Reuters I/B/E/S.

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Oracle’s shares (ORCL) fell 1.1% to $40.40 in extended trading on Thursday.

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