Stock in Nasdaq-listed software company Oracle lost almost 10% yesterday, after it released third quarter results that disappointed the market.
The company's results were announced after the market closed on Wednesday, leading to the share dropping 9.69%, to $32.30. Reuters notes this is the single biggest one day drop since December 2011.
Overall, revenue dropped a percent in the three months to February, to $8.9 billion, while new software licences and cloud software subscriptions revenue was down 2% to $2.3 billion.
The wire service notes Oracle described the drop as a blip due to a sales force that lacks urgency, although some analysts have raised concerns, pointing out that Internet rivals are offering cheaper solutions.
Software licence updates and product support revenue gained 7%, to $4.3 billion, and hardware systems product revenue was $671 million, a 23% decline. Net income was flat at $2.5 billion.
CNBC reports that Oracle had forecast a 3% to 13% increase in new software licences and cloud subscriptions for the third quarter, and analysts had estimated overall revenue of $9.38 billion.
In the previous quarter, revenue gained 3%, to $9.1 billion, while new software licences and cloud software subscriptions turnover gained 17%, to $2.4 billion. Software licence updates and product support revenue grew 7%, to $4.3 billion.
Oracle says, without the impact of the US dollar strengthening compared to foreign currencies, total revenue in the third quarter would have been 1% higher, and new software licences and cloud software subscription revenue would have been 2% better than reported.
However, president and CFO Safra Catz points out that both operating cash flow and free cash flow were at "record levels" for a third quarter, with operating cash flow of $13.7 billion over the last 12 months.
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