This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Oracle's Fiscal 4Q Sales Disappoint Wall St. Again

By MICHAEL LIEDTKE

SAN FRANCISCO (AP) â¿¿ Oracle is still having trouble closing enough business software deals to keep Wall Street happy.

The quarterly results announced Thursday could escalate investors' fears about Oracle's ability to adapt to the changing demands of its customers. Businesses and government agencies are increasingly buying software through monthly or annual subscriptions that enable employees to access applications on any machine with an Internet connection. This "cloud computing" approach is a shift from Oracle's traditional approach of licensing software that is installed on individual computers kept on the premises of its customers.

Oracle has been rolling out more cloud computing options through acquisitions and in-house development, but its recent performance is raising questions about its ability to compete in this growing market. The cloud computing shift is being led by smaller companies that were set up to focus on leasing software over the Internet. This group includes Salesforce.com Inc., Workday Inc. and NetSuite Inc., a company backed by Oracle CEO Larry Ellison.

Like other software makers born decades ago, Oracle and longtime rival SAP are trying to mine new markets while still clinging to the old way of doing things because the familiar sales methods still bring in most of the company's revenue.

"It's a very difficult transition," Forrester Research analyst Andrew Bartels said. "It's something they are clearly nervous about."

Investors are jittery, too. Oracle's stock plunged $2.99, or 9 percent, to $30.22 after the numbers came out.

A similar sell-off occurred three months ago when Oracle's previous quarterly report proved to be a letdown.

The latest report covering Oracle's fiscal fourth quarter also contained troubling signs as several key gauges fell below the analyst projections that steer Wall Street's expectations.

Nonetheless, Oracle insists it remains healthy. It boasted that it added more than 500 cloud computing customers in the past quarter, putting the company on a pace to generate more than $1 billion annually in cloud computing.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,953.25 -130.55 -0.76%
S&P 500 1,979.29 -8.69 -0.44%
NASDAQ 4,450.0240 -22.0840 -0.49%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs