(Reuters) – Sales of Oracle Corp fell more than expected in the first quarter, pressured by a stronger dollar and the rapid transition of customers to program cloud, with less margins and failed to compensate declining revenues from traditional packaged software.
Like competitors such as SAP, IBM Corp and Microsoft Corp, Oracle is making efforts to boost sales of online programs that work to address a rapidly growing competitors such as Salesforce.com Inc and Workday Inc.
Oracle sales fell 1.7 percent to 8,450 million in the first quarter ended August 31. However, the decline was less than the 5.4 percent the previous quarter.
Analysts on average expected sales of 8.530 billion, according to Thomson Reuters I / B / E / S.
Sales of software and cloud services platform rose 34 percent to $ 451 million in the quarter, while revenues from traditional software licenses fell by 16 percent to 1,510 million dollars.
While Oracle has been successful with its business model to cloud, analysts said the company has not been fast enough to offset the lower sales of traditional software.
While cloud sales are a small part of the revenue of Oracle, have the advantage that generate a stable flow of income because they rely on subscriptions, but the margins are lower.
The stronger dollar also punished sales Oracle in the last quarter. The company said revenue rose 7 percent on a basis of constant exchange rates.
Oracle’s net income fell to 1.750 billion, or 40 cents per share, from $ 2.180 billion, or 48 cents per share. If exceptional items are excluded the company earned 53 cents per share.
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