Oracle takes profit blow

Shakes fist at lousy dollar

By Kelly Fiveash • Get more from this author

Posted in Financial News, 19th December 2008 23:13 GMT

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Software giant Oracle has blamed the US dollar for putting a dent in its second quarter earnings, with the firm’s net profit falling one per cent to $1.3bn.

The Redwoods Shores, California-based company said revenue climbed six per cent to $5.6bn for the Q2 period ended 30 November.

Oracle also saw a healthy eight per cent rise in software revenue, pulling in $4.5bn in the quarter. However, new software licence revenues were down three per cent to $1.6bn.

Software licence updates and product support sales were up 14 per cent to $2.9bn, while services revs fell two per cent to $1.1bn in Q2.

The company said the stronger dollar up against weaker foreign currency hurt revenue and profit for the quarter. It said profit excluding special items decreased by three cents per share.

Oracle said that the stronger dollar decreased its profit excluding special items by three cents per share.

Shares closed up 2.47 per cent to $17.02 on Nasdaq. ®

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