Ominous Oracle

Database and applications giant Oracle endured a further fall in both revenue and net income in its latest quarter. Revenues for the third quarter of 2002 fell 17% to $2.2 billion, compared with $2.7 billion for the same period in 2001. Net income dropped 13% to $508 million, down from $582.7 million the year before.

Licence revenue fell in both applications – traditionally Oracle's strongest growth area – and databases, where revenue dropped for the fourth consecutive quarter. Overall licence revenues (including new sales and updates) declined by 37% to $1.37 billion and at that rate will be down 20% for the company's full fiscal year to 31 May 2002.

Oracle executives were quick to blame the near-universal slowdown in IT spending for its continued slump in sales, but analysts at AMR Research say the lagging economy cannot take the blame entirely. "Recent economic conditions are certainly a factor in many technology vendors' earnings, but Oracle has to look at its recent execution as the main culprit," says AMR.

Avatar photo

Ben Rossi

Ben was Vitesse Media's editorial director, leading content creation and editorial strategy across all Vitesse products, including its market-leading B2B and consumer magazines, websites, research and...

Related Topics