The shares of Oracle Corporation (NYSE:ORCL) were down nearly 2% in the after-hours trading following the news of Larry Ellison leaving the CEO post and less than expected quarterly results from the company.
Larry Ellison stepped down from the CEO position only to resume working as chief technology officer and board’s Chairman. Mark Hurd and Safra Catz would be the two new co-CEOs of the company, although Oracle portrayed them as CEOs. Ellison said,
“They deserve the CEO title.”
When asked about the new management responsibilities, Ellison said,
“Safra and Mark will now report to the Oracle Board rather than to me. All the other reporting relationships will remain unchanged. The three of us have been working well together for the last several years, and we plan to continue working together for the foreseeable future. Keeping this management team in place has always been a top priority of mine.”
Earlier, Oracle Corporation (NYSE:ORCL) announced its Q1 financial results for fiscal 2015 with net revenue of $8.6 billion as compared to $8.37 billion in the same quarter last year. The company made progress in its SaaS and PaaS cloud revenue with an increase of 32% to $332 million. GAAP net income remained unchanged from the previous year’s quarter at $2.2 billion or $0.48 per share. The management declared quarterly dividend of $0.12 per common share of Oracle Corporation (NYSE:ORCL).
“Next week at Oracle Open World, we will be rolling out our database cloud service.”
He further added that database cloud service would be the largest cloud service offering by the company. Oracle Corporation (NYSE:ORCL) grew its cloud services business by 30% and its Fusion cloud application grew over 200% in the quarter, although Oracle missed the market earnings estimate of $0.62 EPS with revenue of $8.78 billion.
This article has been written by Prakash Pandey.