By Benjamin Pimentel, MarketWatch
SAN FRANCISCO (MarketWatch) -- Oracle Corp. on Wednesday reported an 8% gain in net quarterly profit, but the software giant's sales fell below expectations once again.
Oracle (ORCL) shares rose 2.5% in after-hours trading.
The company reported a fiscal first-quarter profit of $2.19 billion, or 47 cents a share, compared with a profit of $2.03 billion, or 41 cents a share, for the year-earlier period.
Revenue grew to $8.37 billion from $8.18 billion. Adjusted profit was 59 cents a share.
Analysts polled by FactSet on average were expecting the Redwood City, Calif.-software maker to report a profit of 56 cents a share, on revenue of $8.48 billion.
Software revenue grew 6% to $6.08 billion. New software licenses and cloud subscriptions edged higher by 5% to $1.65 billion.
On the other hand, Oracle's hardware systems revenue slipped 7% to $1.26 billion.
Oracle said its board has declared a quarterly dividend of 12 cents a share of outstanding common stock with a payment date of Oct. 29.
Evercore Partners analyst Kirk Materne told MarketWatch that Oracle's results were "pretty much in line on revenues, which was about all they needed to do as sentiment was low heading into the print."
Ray Wang, CEO of Constellation Research, said the company's hardware business was clearly still struggling.
But Oracle's ability to offer a broad range of products and services is still a draw to customers.
Wang pointed to the upcoming Oracle Open World to be held in San Francisco next week where the company typically closes big deals.
"Their business after Open World is usually good," he told MarketWatch. "That shows up on Q2."
-Benjamin Pimentel; 415-439-6400; AskNewswires@dowjones.com
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(END) Dow Jones Newswires
09-18-13 1647ETCopyright (c) 2013 Dow Jones & Company, Inc.
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