Oracle Japan <4716.T> posts first-ever profit drop
(Adds company comment, share price)
TOKYO, July 16 (Reuters) - Oracle Corp of Japan, a subsidiary
of software powerhouse Oracle Corp <ORCL.O>, on Tuesday reported
its first decline ever in revenue and profit for the last
business year, hit by a tenacious slump in IT spending.
The computer software and services firm, citing cautious
corporate spending and rising competition, forecast a further dip
in profits in the business year to next May and modest revenue
growth, which fell short of analysts' consensus estimates.
"With our corporate customers curbing capital investment and
still holding excess capacity, a number of projects have been
delayed or scaled back," the company said in a statement.
Oracle Japan posted a non-consolidated net profit of 17.62
billion yen ($151.6 million) in 2001/02, down 3.8 percent from a
year earlier, on revenues of 86.36 billion yen, down 1.6 percent.
For the current business year, the company forecast a net
profit of 15.2 billion yen, down 13.7 percent, and a 2.6 percent
rise in revenues to 88.6 billion yen.
Analysts had forecast a 2002/03 net profit of 16.5 billion
yen on revenues of 91.3 billion yen, according to consensus
estimates compiled by Multex, a research firm.
The results for the previous year were in line with estimates
announced on June 7, when the company lowered its 2001/02
earnings targets for a second time to reflect sluggish demand and
cut its planned dividend for the year to 100 yen from 110.
The once high-flying software company's diminishing prospects
have been reflected in the share price, which ended 1.63 percent
down on Tuesday at 4,830 yen after hitting its lowest since the
shares were listed on the Tokyo Stock Exchange in April 2000.
The earnings announcement came after the end of share trade.
($1=116.20 Yen)
((Edmund Klamann, Tokyo Equities Desk +81 3 3432 8595
tokyo.equities.newsroom@reuters.com))
REUTERS
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