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Oracle's new software sales fall, stock slumps

US-ORACLE-RESULTS:Oracle's new software sales fall, stock slumps

SAN FRANCISCO (Reuters) - Oracle Corp on Wednesday posted a 2 percent drop in new software sales and Internet-based software subscriptions to $2.3 billion in its fiscal third quarter, missing its own forecasts and sending its shares sharply lower.

The world's No. 3 software maker had forecast a 3 to 13 percent jump in new software license and cloud subscription revenue. Investors scrutinize new software sales because they generate high-margin, long-term maintenance contracts and are an important barometer of future profit.

The company's shares fell more than 6 percent in after-hours trading.

Some investors have worried that governments and corporations around the globe would postpone spending on technology projects because of uncertainty over the economy, particularly in Europe.

Oracle will offer its current-quarter projections and comments on performance in a teleconference with analysts later on Wednesday.

Overall, Oracle's revenue dipped 1 percent to $9 billion, missing the $9.382 billion analysts had expected on average according to Thomson Reuters I/B/E/S.

GAAP net profit was unchanged at $2.5 billion. GAAP earnings per share were 52 cents, up 6 percent from the year-ago period. Its adjusted earnings per share were 65 cents, shy of 66 cents expected by analysts.

Shares in the software company dived more than 6 percent to $33.45 after hours, from a close of $35.765 on Nasdaq.

(Reporting by Noel Randewich; Editing by Richard Chang)

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Related Keywords:US , ORACLE , RESULTS

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