Oracle's 3rd-Qtr Profit Falls as Software Sales Slump (Update5)
By Ashley Gross
quote.bloomberg.com
Redwood City, California, March 14 (Bloomberg) -- Oracle Corp., the world's largest database-software maker, said fiscal third-quarter earnings fell 13 percent and revenue dropped for a fourth straight quarter, missing forecasts.
Net income in the period ended Feb. 28 fell to $508 million, or 9 cents a share, from $582.7 million, or 10 cents, a year earlier, the company said in a statement. Sales fell 17 percent to $2.23 billion, less than the average analyst estimate of $2.42 billion in a Thomson Financial/First Call poll.
Oracle has lagged earnings estimates in four of the past five quarters, blaming the slumping economy and corporate customers' reluctance to buy software. Investors said Oracle is also being hurt by pricing pressure from rivals International Business Machines Corp. and Microsoft Corp., as well as flaws in its Web- based programs that have discouraged potential customers.
``It gets a little bit weak to say, `Oh my, it's the economy,''' said Henry Asher, president of Northstar Group Inc., which manages $140 million and holds 48,000 Oracle shares. |
