By Micah Maidenberg
Oracle Corp. reported stronger-than-expected sales and beat profit targets for its latest quarter.
The company said on Wednesday that fiscal-fourth-quarter revenue increased about 1% from the year earlier to $11.14 billion, surpassing the $10.93 billion that analysts polled by FactSet predicted.
Oracle reported a decline in revenue versus the year earlier periods in its previous two quarters. It faces robust competition -- including from Microsoft Corp., Amazon.com Inc. and Salesforce.com Inc. -- to sell businesses services and software via the cloud. Earlier this month, Salesforce said revenue rose by 24% in its latest quarter.
Oracle's largest business unit, cloud services and license support, booked $6.79 billion in revenue in the latest quarter, up 0.5% compared with last year. Sales from its cloud license and on-premise license business gained 12% to $2.52 billion.
The company's adjusted profit margin of 47% in the quarter that ended May 31 was the highest level it has recorded in five years, co-Chief Executive Safra Catz said.
Shares of Oracle gained 6% in after-hours trading Wednesday.
Profit rose to $3.74 billion, or $1.07 cents a share, for the quarter, up from $3.28 billion, or 79 cents a share last year. After adjustments, it reported a profit of $1.16 a share, 9 cents better than Wall Street targets.
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