Oracle shares drop by one third

Results Database giant blames the economic turmoil in Asia for its disappointing Q2 results.

Database giant Oracle revealed that its second quarter figures weredisappointing Q2 results. lower than expected, wiping 30 per cent from its stock value in one day.

Oracle shares saw 10 points knocked off their value in the hours following the release of disappointing second quarter results. Some Wall Street observers questioned whether the leading database company was set to follow arch-rivals Informix and Sybase into its own financial crisis.

According to Oracle chief financial officer Jeff Henley, the company was 'clearly disappointed' with the results for the second quarter ended 30 November. Revenue increased by 23 per cent to $1.6 billion from the comparable period last year, while net income for the period was $187 million compared to $179 million.

Oracle's shares dropped by 30 per cent to close at $22 on 10 December.

There was also a record set for the most shares of a US stock traded in one day. On an average day, six million Oracle shares change hands; by 8.30am on 9 December, the total stood at 76 million shares and rising.

By 4.30pm the total had risen to 169.4 million shares, at least $3.9 billion of stock. The value in share price also saw Larry Ellison, Oracle CEO, lose $2.2 million in one day.

The company's Asia-Pacific operation was blamed for much of the shortfall. In US dollar terms the region managed a one per cent revenue increase, against 29 per cent in the domestic US market.

The figures showed that licence revenues grew one per cent with server revenues up only three per cent. Unix licence revenues fell by four per cent, while the NT-led desktop business increased by a third.