{"id":24447,"date":"2017-03-16T06:44:46","date_gmt":"2017-03-16T06:44:46","guid":{"rendered":"http:\/\/www.biphoo.com\/bipnews\/?p=24447"},"modified":"2017-03-16T06:44:46","modified_gmt":"2017-03-16T06:44:46","slug":"oracle-cloud-transition-helps-third-quarter-profit-beat","status":"publish","type":"post","link":"https:\/\/www.biphoo.com\/bipnews\/technology\/oracle-cloud-transition-helps-third-quarter-profit-beat.html","title":{"rendered":"Oracle\u00a0cloud transition helps third-quarter profit beat"},"content":{"rendered":"

\n\tOracle cloud transition helps third-quarter profit beat<\/span><\/span><\/strong><\/span>
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\n\tOracle cloud transition helps third-quarter profit beat:-<\/strong> Oracle Corp reported better-than-expected quarterly profit and adjusted revenue as the business software maker benefits from its transition to cloud-based products.<\/span><\/span><\/span>\n<\/p>\n

\n\tOracle's shares rose 5.2 percent to $45.30 in extended trading on Wednesday.<\/span><\/span><\/span>\n<\/p>\n

\n\tSales of the company's cloud-computing software and platform service rose nearly 62 percent to $1.19 billion, while its software licensing business fell nearly 16 percent.<\/span><\/span><\/span>\n<\/p>\n

\n\t"The worst of this cloud transition is over (for Oracle)," Drexel Hamilton analyst Brian White wrote in a note.<\/span><\/span><\/span>\n<\/p>\n

\n\tThe company's shift to cloud-based products to tackle the shrinking licensing business was strengthened with its $9.3 billion NetSuite acquisition in July. The deal helped the company to take on nimbler rivals such as Workday Inc and Salesforce.com Inc.<\/span><\/span><\/span>\n<\/p>\n

\n\t"The growth in revenue from our cloud business has overtaken new software license declines on an annual basis," Safra Catz, Oracle chief executive said during the earnings call on Wednesday.<\/span><\/span><\/span>\n<\/p>\n

\n\tThe Redwood City, California-based company said adjusted revenue from its Software as a Service (SaaS) and Platform as a Service (PaaS) unit rose 86 percent to $1.1 billion on a constant currency basis, which was at the high end of its previous guidance.<\/span><\/span><\/span>\n<\/p>\n

\n\t"I would have thought it (SaaS and PaaS revenue) would be even higher, but investors should be ok given that it was in the high-end of their guidance," Wedbush Securities analyst Steve Koenig said.<\/span><\/span><\/span>\n<\/p>\n

\n\tOracle's net income rose to $2.24 billion, or 53 cents per share, in the third quarter ended Feb. 28, from $2.14 billion, or 50 cents per share, a year earlier.<\/span><\/span><\/span>\n<\/p>\n

\n\tExcluding items, the company earned 69 cents per share beating the average analysts' estimate of 62 cents per share, according to Thomson Reuters I\/B\/E\/S.<\/span><\/span><\/span>\n<\/p>\n

\n\tThe company's provision for income taxes in the latest quarter fell 22 percent to $459 million.<\/span><\/span><\/span>\n<\/p>\n

\n\tOracle's total adjusted revenue rose nearly 3 percent to $9.27 billion, marginally beating estimates.<\/span><\/span><\/span>\n<\/p>\n

\n\tThe company forecast current-quarter earnings of 78 cents to 82 cents per share and revenue to grow between negative 1 percent and positive 2 percent.<\/span><\/span><\/span>\n<\/p>\n

\n\tAnalysts are expecting fourth-quarter profit of 78 cents and revenue of $10.62 billion.<\/span><\/span><\/span>\n<\/p>\n

\n\tSource:- http:\/\/www.reuters.com\/article\/us-oracle-results-idUSKBN16M2XI<\/span><\/span><\/span><\/p>\n

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