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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: StanX Long who wrote (55474)	11/13/2001 11:43:40 PM
From: StanX Long	Read Replies (1) \| Respond to of 70976

Oracle Down on Warning, Downgrade November 13, 2001 4:47:00 PM ET news.moneycentral.msn.com PALO ALTO, Calif. (Reuters) - Shares of Oracle Corp. (ORCL) fell more than five percent in heavy trade on Tuesday after the company warned that second-quarter earnings would fall below year-ago levels and analysts' consensus forecast. The stock -- the day's second-most active issue on volume of more than 89 million shares -- was down 88 cents, or 5.7 percent, at $14.52 as investors and analysts appeared to take the warning in stride. On Monday night, Oracle Chief Executive Larry Ellison told reporters at the COMDEX technology trade conference in Las Vegas that his Redwood Shores, California-based company saw second-quarter earnings of 9 cents to 10 cents a share. Earlier the company had forecast earnings matching year-ago results of 11 cents. In recent quarters Oracle has been slashing costs to deliver strong earnings -- a strategy that no longer appears to be enough to compensate for a drought in corporate technology spending that has hampered software sales at other shops, including selling and customer service software vendor Siebel Systems Inc. (SEBL) Joshua Greenbaum, principal consultant at Enterprise Applications Consulting in Daly City, California, said he had anticipated the Silicon Valley software icon's warning. ``Nobody has been able to show anything resembling interesting, spectacular growth,'' Greenbaum said. One of the most severe reactions came from Credit Suisse First Boston, which on Tuesday downgraded Oracle shares to ''hold'' from ``buy,'' citing weakening demand and ongoing product development challenges.