Oracle profits down 12%
Dotcom death drains growth
Oracle's revenues fell 11 per cent and profits dropped 12 per cent, as the software maker battled its way through its toughest quarter in a decade. Earnings of $549.5 million were made on the back of $2.36 billion in sales.
Revenue from software licenses was $803 million, down 27 per cent year on year from Q2 2000's $1.1 billion and far worse than the 15 per cent CEO Larry Ellison initially forecasted following the September 11 disaster.
Things won't improve anytime soon; the company is predicting a flat third quarter and a continued decline in new license sales until the fourth quarter.
Its core business, database software, dropped from $1.25 billion to $1.1 billion year on year, although Ellison insists that competitors IBM and Microsoft have not picked up any market share from the company.
Aside from the huge impact of September 11, the company has been hit hard by the demise of the dotcom market, which was a key factor in its growth over the past years, accounting for 15 per cent of its North American sales last year. ®
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