Oracle Q3: Misses Consensus on Economic Weakness

Oracle posted revenues of $5.35 billion and EPS of 26 cents for Q3 -– year-over-year, up 21% and 30%, respectively. But new software sales were at the low end of expectations, so ORCL is down more than 8% in after hours trading.

Oracle’s CFO, Safra Katz, said that the lackluster new software sales were a result of customers getting cautious as the economy worsens. Oracle therefore becomes the latest of the once “immune”  tech companies to feel the recessionary impact. (Can Hewlett-Packard (HPQ) and IBM (IBM) be far behind?)

On the bright side, Oracle remains a real company selling real products to real customers, which means it was able to generate $1.34 billion in profit last quarter. To put it in Web 2.0 terms: Larry Ellison could have used that money to buy all of Bebo, 3.2% of Facebook (double rival Microsoft’s stake) and still have plenty of money to pick up his security tab.

 

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