from wsj:
......
In all, the product-sales increases were the lowest Oracle has seen in more
than a year, and the company's stock fell. In Nasdaq Stock Market
trading Thursday, the shares fell $1.0625 to $36.875. They fell again in
after-hours trading, according to Instinet, to $33.75, meaning the decline
for the day was 11%.
Oracle is among the world's largest software companies and the leading
supplier of the database products used by big companies to keep track of
operations. Its top spot in databases is being challenged, though, by
Microsoft Corp.
There were signs in Oracle's latest report that Microsoft is making inroads.
Sales of Oracle's products for the Windows operating system had been
growing at nearly a 30% rate, but sales increases dropped to just 10% in
the latest quarter, noted analyst James M. Pickrel of Hambrecht & Quist.
Overall, said Mr. Pickrel, "The numbers looked a little light. I am sure this
is going to be regarded as something of a disappointment."
Still, the disappointment was a far cry from the company's December
1997 announcement of slowing sales, which pummeled not only Oracle's
stock but much of the larger technology market. And Mr. Pickrel noted
that Oracle's third quarter is often slow for the company, which typically
has a stronger fourth quarter.
Oracle Chief Financial Officer Jeffrey Henley said much of the weakness in
sales for the quarter was the result of a "difficult comparison" to last year's
stronger quarter. He also predicted a pickup in sales in the fourth quarter. |
