Oracle swings to loss because of payment tied to dispute over former CEO Hurd’s employment

Oracle swings to loss because of payment tied to dispute over former CEO Hurd’s employment

Oracle CEO Safra Catz delivers a keynote address during the 2019 Oracle OpenWorld on September 17, 2019 in San Francisco, California. Oracle CEO Safra Catz kicked off day two of the 2019 Oracle OpenWorld with a keynote address. The annual convention runs through September 19.

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Oracle shares rose 6% in extended trading on Thursday after the database software maker reported fiscal second-quarter earnings that exceeded analysts’ estimates.

Here’s how the company did:

Earnings: $1.21 per share, adjusted, vs. $1.11 per share as expected by analysts, according to Refinitiv.Revenue: $10.36 billion vs. $10.21 billion as expected by analysts, according to Refinitiv.

Revenue increased 6% year over year in the quarter, which ended Nov. 30, according to a statement.

The company swung to a net loss of $1.25 billion from net income of $2.44 billion in the year-ago quarter. It made a payment for a judgment in a decade-long dispute over former CEO Mark Hurd’s employment. Hurd joined Oracle in 2010 after serving as CEO of computer maker HP. He was later co-CEO alongside Safra Catz until he died in 2019. Catz has since held the CEO title on her own.

Oracle reported $7.55 billion in cloud services and license support revenue, up 6% year over year and just above the StreetAccount consensus of $7.54 billion.

Cloud license and on-premises license revenue totaled $1.24 billion, up 13% and above the $1.07 billion consensus.

Oracle said it had $7.9 billion in short-term deferred revenue, below the $8.29 billion consensus.

In the quarter Oracle said it would open cloud data centers in Colombia, Israel, Italy, France, Mexico, Singapore, South Africa and Sweden.

Notwithstanding the after-hours move, Oracle stock is up 37% since the start of 2021, while the S&P 500 index is up about 25% over the same period.

Executives will discuss the results with analysts and issue guidance on a conference call starting at 5 p.m. ET.

This is breaking news. Please check back for updates.

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