The second-quarter fiscal profits and sales reported by Oracle Corporation (NASDAQ:ORCL) topped the estimates of the analysts on the increasing demand for software that are internet-based.
After exclusion of some of the items, the profit per share was 64 cents calculated on $9.11 billion of adjusted revenue. This compared with the average projection by analysts for profit stood at 61 cents and for sales it stood at $9.02 billion. Some of the subscription and support contracts and the licensing revenue are included in the adjusted revenue.
The acquisitions, that now include this year, Taleo Corp and RightNow Technologies Inc., are used by Larry Ellison, Chief Operating Officer of Oracle Corporation (NASDAQ:ORCL) to append the cloud computing software which can be accessed by the customers online rather than accumulating on their individual servers. This is one of the reasons for the boosting up of the margins of profit as Oracle Corporation (NASDAQ:ORCL) fends off petite competitor like Salesforce.com, inc. (NYSE:CRM) and Workday Inc (NYSE:WDAY), which provide business products that are web-based.
The sales of that software which are used by the companies for their operations and workforce management augmented to more than 30 percent. There will be an increase from 1 percent to five percent in adjusted revenue and with the exclusion of certain items; the profit per share will be 64 cents to 68 cents in the third quarter, ending February. The projection by analysts for sales is a growth of 4 percent reaching $9.46 billion and earnings per share to be at 66 cents.
In the third-quarter, the subscription sales and new license sales may augment 3 percent to 13 percent, to provide $2.56 billion, the projection maintained at $2.54 billion.
Further, the cloud computing software is moving on path to attain $1 billion revenue and is expected to grow more.
There has been a decline in the sales of hardware for the last two years. But is expected to show an amplification in the fiscal fourth quarter ending May.
Ellison advised that Oracle Corporation (NASDAQ:ORCL) will boost dividends through cash in a gradual manner instead of making big acquisitions.
Shares of Oracle Corporation (NASDAQ:ORCL) were up by 3.68% to close at $34.09
Shares of Salesforce.com, inc. (NYSE:CRM) were down by 0.61% to close at $169.86
Shares of Workday Inc (NYSE:WDAY) were up by 3.26% to close at $55.13.