/// Oracle’s Sales Fall, Shares Rise: It’s An Upside-Down World
Shares of the software giant Oracle are roaring this morning in the wake of yesterday’s quarterly earnings report , where the headline focus was on smaller-than-expected sales. While the shares fell in after-hours trading, investors sent the share soaring as markets opened in New York by 68 cents, or more than 2 percent to $32.94. Profits on a per-share basis were 53 cents, in line with what analysts had expected, while revenues at $8.2 billion were off the consensus by about $200 million. What gives? It’s subtle, and it all comes down to two big bets that Oracle has made that are close to, but not yet, paying off: Hardware and cloud computing First, there’s the hardware business, the remnant of the former Sun Microsystems that Oracle acquired in 2010. Oracle has been rebuilding those products lines into what it calls its “engineered systems” line, hardware sold under the brand name Exa: There’s Exadata, Exalogic and Exalytics. (Oracle president Mark Hurd described them in detail in an interview with AllThingsD in June .) It also sells other lines of hardware, the T and M lines that are leftover Sun products. Here revenues were $779 million for the quarter. On a constant currency basis, hardware sales are down by more than 20 percent.
See the rest here:
Oracle’s Sales Fall, Shares Rise: It’s An Upside-Down World
- 08/07/2014 • Obama Indicates Opposition to Internet ‘Fast Lanes’
- 07/22/2014 • Comcast’s 2Q Net Income Soars Nearly 15% On Sale of Web Services
- 07/04/2014 • Why It Doesn’t Make Sense for Weinstein’s TV Division to Go Public
- 06/02/2014 • Networks Are Writing Discounted C7 Deals, But Not Everyone’s Biting