(Reuters) – Oracle Corp’s (ORCL.N) said on Wednesday its Chief Executive Officer Mark Hurd would be taking a medical leave, and the business software maker, posted the first quarterly revenue that missed Wall Street’s expectations.
FILE PHOTO of Mark Hurd, CEO of Oracle Corporation, speaks at the Wall Street Journal Digital conference in Laguna Beach, California, USA, October 18, 2017. REUTERS/Lucy Nicholson
The company’s shares were down 2 percent in extended trading.
Hurd, one of Oracle’s two ceos, and the other one is Safra Catz. Under their tenure, the company has been trying to make a quick transition to a cloud-computing software.
Catz, Oracle’s founder and Chief Technology Officer Larry Ellison will have to cover Hurd’s responsibilities during his or her absence, to the company’s statement said.
Hurd will continue to receive all fringe benefits during the leave of absence, as the Oracle said. The company did not respond to Reuters ‘ request for more information for more information on Hurd’s health problem and how long the leave would last.
Hurd was named Oracle’s co-president in September 2010, a month after he was ousted in a controversial fashion by Hewlett-Packard Co., where he has been chief executive since 2005. (few.rs/2kfZh1Z)
If Hurd and Catz were named co-ceos of 2014, analysts are skeptical about the move. However, the cloud and software giants, such as Salesforce.com Inc., and CRM.(N), which has also had a new co-CEO-structure will be in place.
“Mark Hurd was a talented executive, but I don’t think Oracle will act differently,” Wedbush Securities analyst Steve Koenig said.
Separately, Oracle reported quarterly results a day before its scheduled release. A note on a post-earnings call with analysts, Catz said: “if mark is taking a leave, we thought it would be appropriate to share all of our news at once.”
The total revenue stood at $9.22 billion, missing estimates of $9.29 billion, according to IBES data, Refinitiv.
The miss are indicated, Oracle is hard to make inroads into the highly competitive cloud-computing market, which is dominated by the likes of Microsoft Corp’s (MSFT.And Amazon.com Inc. (AMZN.D).
Oracle has been aggressive in pushing into cloud computing, to make up for a late date of entry into force of the fast-growing company that allows companies to move away from the traditional, and more expensive than the on-premise model.
The company also said that, on the basis of a currency headwind is expected in the second quarter, adjusted earnings of between 87 cents and 89 cents a share, below estimates of 91 cents per share.
Net income fell to $2.14 billion in the quarter that ended in Sep. 31, from $2.27 billion a year earlier. On a per-share basis, Oracle earned 63 cents a share from 57 cents a share, a year ago.
Excluding items, Oracle earned 81 cents a share, in line with analysts ‘ expectations.
Oracle also said it plans to buy back an additional $15 billion in stock.
Reporting Arjun Panchadar in Bengaluru; Editing by shailesh Kuber