Oracle reports lower Q2 revenue and profit

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Oracle reports lower Q2 revenue and profit

Oracle has reported lower financial results for its fiscal second quarter than for the same time a year ago, as the company continues to face up to reduced customer spending.

Earnings per share for the three months ending 30 November came in at 10 cents, down from 11 cents in the second fiscal quarter of 2001. Revenue was $2.4bn, down slightly from $2.7bn a year ago.

Revenue from new software licences fell 27% from a year ago, while revenue from software-licence renewals and product support services increased 8% and 12% respectively, the company said.

Oracle's chairman and chief executive officer, Larry Ellison, called the period "our toughest quarter in a decade". Despite that, he said, the company reported more than $800m in operating profit and operating margins of 35%.

Net income for the period was $549.5m, down from $622.8m a year earlier.

The earnings per share figure falls in line with analysts' lowered expectations, according to Thomson Financial/First Call. Wall Street had originally been looking for a profit of 11 cents a share, matching last year, but dropped their estimates by a penny after Ellison warned in early November that business was slower than expected.

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