Oracle fails to meet the financial targets set of Fiscal Second Quarter – Part 1

Oracle Corporation is in the thick of troubles during the first fiscal quarter. Although the company showed profits in the fiscal second quarter of November, they were not up to the target set by the company.

Moreover, the realistic estimation of profits set by Wall Street for profits of the company last month were also not achieved. As a result, Oracle’s shares this week showed losses at both NASDAQ and NYSE.

The financial results mentioned in the monthly report disappointed the share holders and the share price took a small dip on the graph. In the after hours, the shares were down $2.21, or 7.6%, to $26.9. Oracle is registered as ORCL at both NASDAQ and New
York Stock Exchange.

The reports mentioned profits undoubtedly but could not match the set objective for the month of November. The Enterprise software giant showed revenues of $8.8 billion, up 2% in the same part of last year.  The Street estimation had been of $9.23 Billion
and the companies own speculation was of $9 to $9.3 Billion. Clearly, the company could not come up to the target set, which disappointed the investors.

Moreover, the Non-GAAP (Generally Accepted Accounting Principles) were reported at 54 cents a share, which was down 3 cents from the Wall Street consensus of 57 cents.  Oracle has anticipated the Non-GAAP shares to end the operations on November 30 at 56
to 58 cents a share.

The new software licence profits had been estimated to reach the mark of 6 to 16 percent, whereas it actually made a diminutive profit of 2%. The hardware business, where mostly Sun Microsystems come in, were estimated to show a loss, owing to the wavy nature
of the global economy.

 However, the losses were estimated at a flat 5 percent by the company, whereas the actual loss incurred was 14 percent. The only improvement shown by the company was in new software licence and product support department, which made 9% income.

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Posted by Usman Khalid on Dec 21 2011. Filed under Business. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry