Revenues Down at Oracle

But $800 million in profits still nothing to sneeze at, CEO Ellison notes

Redwood Shores, CA  December 14, 2001  Oracle closed the books on its "toughest quarter in a decade" this week, reporting fiscal second quarter revenues and profits that were down compared to a year ago. But the e-business software giant held out hope for brighter days ahead.

The world's No. 2 software company said its revenues came in at $2.4 billion for its fiscal 2002 second quarter, which ended November 30, versus $2.7 billion for the same quarter of 2001. Net income for Q2 2002 was $549 million, against $623 million a year ago.

"It was our toughest quarter in a decade, but we still made over $800 million dollars in operating profit and a 35 percent operating margin," said Oracle CEO Larry Ellison, referring to the company's net income before taxes. "When the economy improves, we will earn a lot more."

Oracle's chief financial officer, Jeff Henley, noted that the second quarter covered the period that included the September 11 terrorist attacks and the subsequent impact on the U.S. economy.

The company predicted that its profits would rebound moving forward, hitting year-ago levels in the third quarter now underway and a slight increase in the fourth quarter.