The Channel logo

News

By | Gavin Clarke 27th March 2008 09:47

Spending slowdown hits Oracle third quarter

Buy more companies!

Oracle's third quarter has proved even a rapacious acquisition strategy can't render you immune to a slow down in customer spending.

Sales of Oracle's software scraped in at the low end of its expectations stated in December: 16 per cent, compared to the anticipated range of between 15 and 25 per cent for the three months to February 29.

The news will unsettle those who've been looking to Oracle as a barometer of IT purchasing power against the backdrop of recessionary talk.

Chief executive Larry Ellison still made enough to keep his racing yacht afloat, though, and to also ensure Oracle remains the envy of open source and software as a service companies trying to woo Oracle customers.

Licensing for new products hit $1.6bn compared to $1.3bn last year. New database and middleware licenses were up 20 per cent and applications seven per cent. Overall, Oracle hauled in $1.3bn in net income, an increase of 30 per cent, on total revenue that grew 21 per cent to $5.3bn. Earnings per diluted share increased six cents to $0.26.

Oracle's president and chief financial officer Safra Catz reportedly pinned the current quarter's revenue growth at between 10 and 20 per cent over the previous year.®

alert Send corrections

Opinion

Merlin Data Center Interior

Trevor Pott

Enterprises want them, but they're still a pain in the ASCII
WWI French tank picture via Shutterstock
Vinod_Khosla

Chris Mellor

A VC with startup agenda slams established suppliers. Surprised? Neither were we
ZenPad_RealRacing

Features

Eclipse image via Shutterstock
The Azure Portal: Microsoft is betting on cloud for its future business
container_ship_hamburg_shutterstock_648
Michael Dell. Pic by Joi Ito
Cool Texas dude is just your average billionaire