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Asia drags down Oracle
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December 8, 1997: 6:32 p.m. ET
Company blames lower-than-expected 2Q on region's economy
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NEW YORK (CNNfn) - Oracle Corp. Monday reported disappointing second quarter profits, reflecting the economic turbulence in Asia.
The world's second largest software maker earned $187 million, or 19 cents a share for the three months ended Nov. 30, up from $179 million, or 18 cents, in the same quarter a year ago.
The profit was below analysts' expectations of 23 cents, according to First Call, which tracks Wall Street estimates.
Revenues rose 23 percent to $1.61 billion from $1.31 billion a year ago.
"Clearly, we were disappointed with the results this quarter. While several factors impacted the quarterly license growth, the economic situation in Asia-Pacific clearly had a significant impact," said Jeffrey Henley, Oracle's executive vice president and chief financial officer.
Prior to the earnings news, Oracle shares closed up 1-3/16 to 32-3/8. However, in after-hours trade, Oracle traded as low as 29 in light activity.
Henley said revenues would have grown 29 percent were it not for the turmoil in Asian markets.
Henley said Oracle's Asia-Pacific revenues would have grown 15 percent as opposed to the 14 percent dip due to currency fluctuations.
Oracle, based in Redwood Shores, Calif., makes database software.
For the first six months of its fiscal year, revenues increased 26 percent to $2.98 billion, up from $2.36 billion a year ago. Net income for the period was $337 million, or 33 cents a share, compared to $292 million, or 29 cents a share, a year ago.
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Oracle Corp.
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