Oracle quarterly profit halves, shares fall

Oracle reported a sharp decline in third-quarter profit, as the business software and cloud firm spends heavily in building out data centers across the world, and also recorded losses from some other investments.

Shares of the Austin, Texas-based company, which have declined about 13 per cent so far this year amid a tech rout, fell 6 per cent in extended trading.

Oracle said it saw losses due to a decline in the share price of gene sequencing company Oxford Nanopore, and an operating loss at Ampere, the maker of the world’s fastest ARM Server Chips.

Oracle, a business software behemoth, is still a laggard in the cloud industry and has been transitioning its business to focus on this high-margin, key growth area over some time.

Even as it does so, the company lacks the large footprint of data centres that rivals Microsoft, Amazon and Alphabet’s Google have and Oracle has a long way to go to be on par with bigger cloud infrastructure providers.

Net income fell to US$2.32 billion, or 84 cents per share, during the quarter ended Feb 28, from US$5.02 billion, or US$1.68 per share, a year earlier.

Revenue for the quarter was at $10.51 billion, in line with analysts’ estimates, according to IBES data from Refinitiv.

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