By CNET Networks, 19 December 2002 14:31
NEWS Fuelled by a rise in licence updates and product support revenue, Oracle's earnings exceeded analysts' forecasts, even though its sales declined for the sixth consecutive quarter. Profits were $535m, or 10 cents per share, for the second quarter, compared with a profit of $549m, or 10 cents per share, a year ago. Financial analysts expected the company to report earnings of eight cents per share on $2.2bn in revenue, according to research firm First Call. Revenue for the quarter ending 30 November fell from $2.38bn a year ago to $2.31bn this year. Licence revenue for the quarter - a key financial indicator - declined to $765m, down seven per cent from the same period last year, while services revenue dropped 11 per cent to $590m. The company reported an eight per cent rise in licence update and product support revenue, which totalled $954m for the quarter. Jeff Henley, Oracle's chief financial officer, forecast in a conference call with analysts that the third quarter will mark a "modest industry recovery" and the end of a year and a half of declining sales at Oracle. He said: "We are more optimistic right now than we've been since the industry slumped two years ago." Alorie Gilbert writes for News.com
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