Enterprise software maker Oracle Corporation (ORCL) said late Tuesday that its fiscal fourth quarter profit fell 7% from last year, but results still beat expectations.
The Redwood City, California-based company reported fiscal fourth quarter net income of $1.89 billion, or 38 cents per share, compared with $2.04 billion, or 39 cents per share, in the year-ago period. Excluding one-time items, Oracle posted an adjusted profit of 46 cents per share.
Sales fell 4% from the same quarter last year to $6.86 billion.
On average, Wall Street analysts expected a lower profit of 44 cents per share on $6.4 billion in revenue.
New software license sales dropped 13% from year-ago levels to $2.74 billion, a sign that Oracle’s customers are holding off in buying new versions of the company’s proprietary software. License updates and product support grew 8%, however, to $3.05 billion.
The company is currently working to close a $7.4 billion acquisition of JAVA software maker Sun Microsystems.
As for the full fiscal year, Oracle said it saw a profit of $5.59 billion, on sales of $23.25 billion.
Looking ahead, Oracle said it expects revenue for the current first quarter to fall 1% to 4% from last year-’s levels, while analysts expect a 5% drop. The company predicted a first quarter profit of 29 cents to 31 cents per share, excluding items, while analysts currently see 30 cents per share.
Oracle shares rose $1.47, or +7.4%, in morning trading Wednesday.
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