UPDATE 2-Oracle's new software sales disappoint, stock drops
SAN FRANCISCO, June 20 (Reuters) - Oracle Corp on Thursday reported a 1 percent increase in quarterly revenue from new software sales and Internet-based software subscriptions, at the low end of its own forecasts, sending its shares sharply lower.
Oracle, which is trying to fend off increasingly aggressive rivals focused on providing software over the cloud or Internet, also said it will move its stock listing to the New York Stock Exchange in July from the Nasdaq and that it plans to double its quarterly dividend.
"Organic growth is slowing and the company has a lot of pressures it has to deal with. They're late to the cloud and playing catch-up," said Mark Moerdler, an analyst at Bernstein. "Doubling the dividend - they're trying to deliver a message that their ability to deliver significantly more cash to investors is going to continue."
The company had forecast a 1 percent to 11 percent rise in new software license and cloud subscription revenue for its fiscal fourth quarter, ended May 31. Investors scrutinize new software sales because they generate high-margin, long-term maintenance contracts and are an important indicator of future profit.
Overall, Oracle's revenue was unchanged at $10.9 billion in the quarter, missing the $11.122 billion analysts had expected on average, according to Thomson Reuters I/B/E/S.
Revenue from new software sales and Internet-based software subscriptions was $4 billion.
Net profit rose 10 percent to $3.8 billion, or 80 cents per share. On an adjusted basis, Oracle earned 87 cents per share.
The software company said it would double its quarterly dividend to 12 cents a share.
Revenue from Oracle's hardware division, which it acquired through the $5.6 billion purchase of Sun Microsystems in 2010, fell 13 percent to $849 million.
Oracle had forecast that hardware product revenue for the May quarter would fall between 12 percent and 22 percent.
The division's revenue has fallen every quarter since Oracle closed the Sun deal, but Chief Executive Larry Ellison said in December he expected hardware systems revenue to start growing in the May quarter.
Shares of the software company fell 4.67 percent to $31.64 after hours after closing down 2.58 percent at $33.21 on the Nasdaq.