Oracle Reports Higher Profit -- 2nd Update
12 Diciembre 2019 - 06:21PM
Noticias Dow Jones
By Maria Armental
Software giant Oracle Corp. won't return to a dual-CEO structure
after the death this year of co-Chief Executive Mark Hurd, the tech
company's founder and chairman Larry Ellison said.
"We have no plans for having a second CEO," he told analysts
Thursday after the company reported second fiscal quarter financial
results. It was the company's first earnings report since the
October death of Mr. Hurd, who had shared the post of chief
executive with Safra Catz.
Ms. Catz now leads Oracle as sole CEO. Company co-founder Larry
Ellison, who ceded the CEO post to Mr. Hurd and Ms. Catz in 2014,
remains active as chairman and chief technology officer.
Oracle, Mr. Ellison said, was working to strengthen its
management team. "We're hiring a bunch of people at the next layer
down who are potential CEOs when both Safra and I retire, which is
not anytime soon," he said.
The Silicon Valley company, best known for its corporate
database software, reported $9.61 billion in revenue for the
quarter ended Nov. 30, missing analysts' projected $9.65 billion,
according to FactSet.
Profit for the second quarter rose to $2.31 billion, or 69 cents
a share. Excluding stock-based compensation and other items, profit
rose to 90 cents a year, from 80 cents a share a year earlier.
Analysts surveyed by FactSet expected a profit of 68 cents a share,
or 89 cents a share as adjusted.
For the current quarter, Oracle gave a somewhat muted outlook.
It projected adjusted profit of 95 cents to 97 cents a share
compared with analysts' projected 97 cents. Sales, Oracle said,
would rise roughly 2%, broadly in line with analysts'
projections.
The company said it is seeing strong demand and higher
conversion rates and expects strong momentum in the second half of
this fiscal year to carry through 2021.
Oracle deftly navigated constant technological changes since it
was founded in 1977; but in the era of cloud computing, it has been
playing catch-up to the likes of Amazon.com Inc., Microsoft Corp.
and Alphabet Inc.'s Google.
In the most recent quarter, Oracle reported a combined $7.94
billion cloud and license revenue, just shy of analysts'
projections of roughly $8 billion. Oracle has been trying to
introduce new features to its cloud, including greater automation,
to help lure customers away from other vendors, in particular
market leader Amazon.
This month, the company added to its board Vishal Sikka, founder
and chief executive of artificial-intelligence company Vianai
Systems and a SAP SE and Infosys Ltd. veteran, highlighting Mr.
Sikka's experience in AI and machine learning.
Shares, which have been trading near record levels in recent
months, closed Thursday at $56.47 and fell 2.6% in after-hours
trading.
Write to Maria Armental at maria.armental@wsj.com
(END) Dow Jones Newswires
December 12, 2019 19:06 ET (00:06 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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