Oracle shares go into freefall

NEWS Oracle shares continued a downward spiral on Europe's bourses this morning, after slumping 20 per cent on the Nasdaq last Friday following a surprise profit warning. Shares, listed on the Frankfurt exchange, were trading 5.49 per cent down at E17.01 by 10:35(GMT). Oracle said on Friday that revenues for the quarter ended 28 February would be down nine per cent on the same period last year. Sales are expected to be down to $2.67bn, missing analysts expectations of $2.89bn. Profit is expected to fall to eight cents per share, down from previous expectations of 10 cents per share. The warning came as a surprise to investors, as Oracle has been consistently upbeat about growth. Company officials blamed the down turn on customers delaying the close of deals because of economic uncertainties. The company also said it could not predict revenue targets for coming quarters. The news sent other software stock, including Ariba, i2 and Siebel, plummeting Friday. Oracle shares rallied towards the end of the day to close 3.76 per cent down.