Oracle’s CEO on medical leave; revenue missed estimates

Oracle’s CEO on medical leave; revenue missed estimates


Oracle Corp announced first-quarter results last week with revenue fell short of Wall Street expectation.

The business software maker also said that its Chief Executive Officer Mark Hurd would be taking a medical leave.

Both new came impacting the company’s share on the announcement date as price fell by 2% in extended trading.

Oracle is being operating under the leadership of two CEO’s, one of them is Hurd whereas Safra Catz is the other CEO of the company, and under their leadership, Oracle remained focused on transition of its business from a business software maker to maker of cloud computing software.

In the absence of Hurd, Catz and Larry Ellison, Oracle’s founder and Chief Technology Officer, will cover the responsibilities, the company said in its statement, adding that during the leave, Hurd will remain receiving all of his employment benefits.

The company did not disclose the details about the Hurd’s health issue and length of the medical leave.

Hurd was announced as co-president of Oracle in September 2010, just a month after his ouster from Hewlett-Packard Co in a controversial way, where he was Chief Executive since 2005.

When in 2014, Oracle came up with the move of naming Hurd and Catz as co-CEOs, it has to face analysts’ skepticism, however, co-CEO structure is also in place in cloud software giants like Inc.

Total revenue of $9.22 billion in the quarter ended August 31, which fell short of $9.29 billion as was estimating the analysts, according to IBES data from Refinitiv.

Net income declined to $2.14 billion from $2.27 in the same quarter a year ago. However, earning per share of 63 cents came above from that of 57 cents, in the year ago quarter.

Excluding items, Oracle succeeded to earn 81 cents per share which met the analysts’ expectations.

Oracle also shared its plan of buying back additional shares of worth $15 billion.

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