Oracle Earnings Down From Last Years

By Matthew Hicks  |  Posted 2002-06-18 Print this article Print

Oracle reported that its 4Q earnings dropped 23.3 percent from a year ago, but still met analysts' expectations.

Oracle Corp. on Tuesday reported that its fourth quarter earnings dropped 23.3 percent from a year ago, as the company continued to face slack software sales. For the quarter ended May 31, the Redwood Shores, Calif., software maker recorded a net income of $656 million on revenues of $2.8 billion. A year earlier, Oracle earned $855 million on revenues of $3.3 billion.
As Chairman and CEO Larry Ellison promised two weeks ago, the company met analysts expectations of earnings per share of 12 cents for the quarter.
Chief Financial Officer Jeff Henley, in a statement, noted that despite the worst recession hes seen in 20 years, the companys operating income margins reached record levels of 37 percent for the fiscal year 2002, which also ended on May 31. "This management team proved it can preserve profits even when times are tough," Henley said in the statement. For the full fiscal year, Oracle recorded net income of $2.2 billion, or 39 cents a share, down 13.2 percent from fiscal year 2001. Revenues for the fiscal year were $9.7 billion, down 11.8 percent from a year earlier. Oracles earnings were partially affected by an impairment charge of $173.5 million related to an investment in Liberate Technologies. Excluding that charge, Oracle said it would have had net income of $760 million, or 14 cents a share, for the fiscal fourth quarter. Fiscal year net income would have been $2.3 billion, or 41 cents per share, the company reported. Related stories:
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    Matthew Hicks As an online reporter for, Matt Hicks covers the fast-changing developments in Internet technologies. His coverage includes the growing field of Web conferencing software and services. With eight years as a business and technology journalist, Matt has gained insight into the market strategies of IT vendors as well as the needs of enterprise IT managers. He joined Ziff Davis in 1999 as a staff writer for the former Strategies section of eWEEK, where he wrote in-depth features about corporate strategies for e-business and enterprise software. In 2002, he moved to the News department at the magazine as a senior writer specializing in coverage of database software and enterprise networking. Later that year Matt started a yearlong fellowship in Washington, DC, after being awarded an American Political Science Association Congressional Fellowship for Journalist. As a fellow, he spent nine months working on policy issues, including technology policy, in for a Member of the U.S. House of Representatives. He rejoined Ziff Davis in August 2003 as a reporter dedicated to online coverage for Along with Web conferencing, he follows search engines, Web browsers, speech technology and the Internet domain-naming system.

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