Oracle Corporation, the largest software manufacturer for organizations and the second in the US software developer, said that it expects quarterly profit below the analysts' forecasts. Weakness of traditional software sales was stronger than the growth of cloud division. First quarter of the fiscal year, which ended on August 31 showed that the total profitability of cloud services has increased by 59% to $969 million. However, sales department of traditional software has shown weak results. Level of new licenses software sales decreased by 10.5% to $1.03 billion.
In the second quarter, the company expects profit of 59-62 cents per share and revenue growth to 3%. During the same period last year the company generated $9 billion. According to Reuters survey, analysts expected the revised profit in the 2nd quarter at $0.65 per share and total revenue at $9.26 billion. Revenues in the 1st quarter rose by 1.7% to $8.6 billion. Net profit of Oracle rose to $1.83 billion, $0.43 per share. The previous rate was $1.75 billion, or $0.40 per share. As a result, Oracle earned $0.55 per share. Analysts forecast for the first quarter was: revenue at the level of $8.7 billion, the value per share at $0.58.