Factbox: Oracle's atypically harsh report card
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Factbox: Oracle's atypically harsh report card

www.reuters.com   | 21.12.2011.

(Reuters) - Oracle Corp missed Wall Street's quarterly earnings forecast for the first time in a decade as the technology giant's corporate customers tightened scrutiny over IT budgets in a worsening economy.
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It came as a shock for investors because Oracle is considered one of the world's best-managed technology companies when it comes to finances.

Here are several key areas where the world's No. 3 software maker fell short:

- EPS: It posted Q2 non-GAAP profit of 54 cents per share, missing the average analyst forecast of 57 cents, according to Thomson Reuters I/B/E/S.

The last profit miss for Oracle was back in the February quarter of 2001, when it missed by 2 cents, according to Thomson Reuters I/B/E/S.

- Software: new software license revenues are probably Oracle's most closely watched metric, because it indicates future revenue streams.

The company pulled in Q2 new software license revenue of $2 billion, missing the Wall Street consensus of $2.2 billion, according to research firm StreetAccount.

- Computer equipment: Wall Street is keeping an eye on Oracle's flagging hardware division, which it took on after buying Sun Microsystems.

Hardware systems product revenue fell to $953 million, missing the $1.06 billion forecast of analysts polled by StreetAccount.

Analysts had expected Oracle to be able to stem declining revenue and turn it around by fiscal 2013.

- Services: Revenue from software updates and support unexpectedly declined from Q1 to Q2, dropping nearly 1 percent to $3.99 billion. It was the first sequential decline in three years.

The division is one of the most lucrative parts of the company.

- Geographically speaking: Europe, Middle East & Africa revenue grew an anemic 0.7 percent to $2.76 billion. Revenue grew about 2 percent in the Americas and 8 percent in Asia Pacific.

Source: analysts, company's quarterly report.

(Reporting by Jim Finkle and Edwin Chan)

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