Oracle Issues Q3 Profit Warning, Blames Asia Sales

The company's new forecast is for earnings of 9 cents a share. In January, it had forecast flat quarter-over-quarter profits of 10 cents. Oracle is set to announce its final financial results March 14.

+'While software sales in the United States and Europe increased slightly over the second quarter, that increase was not enough to offset a slowdown in Asia,' Oracle Chief Executive Larry Ellison said in a statement.

+'As companies become more confident in the economy, we expect that capital spending will increase and our business will improve -- first in the U.S. and then around the world.'

+'Based on preliminary estimates, it appears that our third quarter year-over-year growth rates for software sales and operating income were about the same as those for the second quarter,' Oracle Chief Financial Officer Jeff Henley said in a statement.

+Oracle shares dropped to $15.25 in after-hours trading following the warning from a close of $15.99 on Nasdaq.

REUTERS

Copyright 2001 Reuters Limited. All rights reserved.

Republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Reuters.

Reuters shall be not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.