(By Balaseshan) Oracle Corp. (NASDAQ:ORCL), an enterprise software company, reported a 11% increase in quarterly earnings on lower expenses. Despite revenue missing consensus, earnings came in line Street's expectations.
Profit for the first quarter increased 11% to $2.0 billion, while earnings per share (EPS) grew 15% to $0.41. Adjusted EPS rose to $0.53 from $0.48.
Revenue declined to $8.18 billion from $8.37 billion, while adjusted revenue decreased 2% to $8.21 billion. Without the impact of the US dollar strengthening compared to foreign currencies, both GAAP and non-GAAP total revenues would have been up 3%.
Analysts, on average, polled by Thomson Reuters had expected a profit of $0.53 per share on revenue of $8.42 billion for the first quarter.
New software licenses and cloud software subscriptions revenues increased 5% to $1.6 billion, while software license updates and product support revenues rose 3% to $4.1 billion. Hardware systems products revenues plunged 24% to $779 million, while hardware systems support revenue fell 11% to $574 million.
Further, the company's board of directors declared a quarterly cash dividend of $0.06 per share of outstanding common stock. The dividend will be paid November 2, to stockholders of record as of the close of business on October 12.
"For the full year, we expect to double engineered systems sales to well over $1 billion. Oracle's new cloud business is also approaching a $1 billion annual run rate. These two businesses will drive Oracle's growth for years to come," said Oracle President, Mark Hurd.
ORCL closed Thursday's regular session down 1.59% at $32.26. The stock has been trading between $24.91 and $33.81 for the past 52 weeks.