The stock loses more than 7% after falling short of Wall Street's profit view amid a decline in hardware revenue.
NEW YORK (TheStreet) -- Shares of Oracle(:ORCL) tumbled in extended trading on Tuesday after the company reported disappointing quarterly results.
The database giant reported non-GAAP earnings $2.8 billion, or 54 cents per share, for its fiscal second quarter ended Nov. 30 on revenue of $8.8 billion, below the average estimate of analysts polled by Thomson Reuters for earnings of 57 cents a share in the three-month period on revenue of $9.23 billion.
Oracle posted its second-quarter numbers after market close on Tuesday.
Software revenue rose 7% year-over-year to $6.03 billion, but Oracle reported a decline of 10% in revenue from hardware systems products and support to $1.58 billion from a total of $1.75 billion last year. Services revenue was flat at $1.18 billion.
"Sales of our engineered systems accelerated in Q2," said Oracle CEO, Larry Ellison in the press release. "Exadata growth was well over 100% compared to last year, and Exalogic grew more than 100% on a sequential basis. We shipped our first SPARC SuperCluster in Q2 and expect to begin deliveries of our Exalytics system and the Oracle Big Data Appliance in Q3."
Oracle also said its board has authorized an additional $5 billion share buyback program. It also announced a quarterly dividend of 6 cents per share, payable to shareholders as of January 11, 2012.
Shares were sharply lower in late trades, down 7.8% to $26.90 on volume of more than 2.6 million, according to Nasdaq.com.
The company plans to hold a conference call at 5 p.m. to discuss these results.
--Written by Chris Ciaccia in New York
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