Business software company Oracle saw its net income fall 4 per cent in the fourth quarter while sales edged up 3 per cent from a year earlier, the California-based company said on Thursday.
The company, provider of database and other business software packages, said it earned $3.64 billion in the fourth quarter, down from $3.8 billion in the same quarter of 2013. Sales rose from $10.94 billion to $11.32 billion.
Oracle financial officer Safra Catz attributed lower revenue to the transition to cloud software. The company said, however, it is making progress in the cloud business selling internet-based products.
“Our cloud subscription business is now approaching a run rate of $2 billion a year,” said Catz in the statement. “As our business has transitioned, more software revenues are being recognised over the life of a subscription rather than upfront.” Oracle shares fell 5.8 per cent in extended trading following the announcement.