Oracle Corp. Japan’s
4716,
shares fell sharply Thursday morning after its first-quarter net profit dropped 3.8% from a year earlier due to higher costs.
The shares were recently 4.0% lower at 7,680 yen after falling as much as 5.3% earlier.
The Japanese unit of U.S. software company Oracle Corp.
ORCL,
said Wednesday after the market closed that net profit dropped to 11.33 billion yen ($78.6 million) for the quarter ended Aug. 31 from Y11.77 billion a year earlier.
While revenue rose 1.3% to Y51.02 billion, the cost of goods sold increased 3.3% due to higher royalty payments and outsourcing expenses. Selling, general and administrative expenses also climbed 7.4%, owing partly to the higher cost of labor.
The company kept its forecasts for revenue and earnings per share for the fiscal year ending May 2023. It continues to expect revenue to rise 1.0%-4.0% and earnings per share to be at Y400-Y410.
The Topix subindex for information technology companies was recently 0.9% lower, while the Nikkei Stock Average
NIK,
was down 1.2%.
