NEW YORK – Oracle Corp. on Wednesday reported flat earnings for its fiscal third-quarter, hurt by a drop in sales of hardware systems and new software. Shares tumbled in after-hours trading on the weaker-than-expected results.
Revenue from new software licenses and online or “cloud” subscriptions, a closely watched figure, fell 2 percent year-over-year to $2.3 billion. The company had predicted that number would rise by 3 percent to 13 percent. Sales of hardware systems products dropped 23 percent.
As one of the world’s largest makers of business software, Oracle’s numbers help Wall Street gauge the direction of corporate technology budgets. When Oracle’s earnings are lackluster, it’s often a sign that companies are concerned about the economy.
But Oracle also depends on international markets for a major part of its revenue. Europe’s economy is still limping.