SAN FRANCISCO - Technology bellwether Oracle Corp. warned that its profit and sales during its latest quarter were weaker than anticipated - an indication that recession-weary businesses remain reluctant to invest in computer software and other equipment. <br>
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The company estimated its earnings for the three-month period ending in February will be 9 cents per share, a penny below the consensus estimate of analysts polled by Thomson Financial/First Call. The projection also represents penny decrease from the company's profit at the same time last year. <br>
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Oracle, the world's second-largest software maker behind Microsoft, is scheduled to announce the results of its fiscal third quarter on March 14. <br>
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The shortfall reflected sluggish sales of Oracle's database and business software, particularly in Asia, said CEO Larry Ellison. <br>
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Without providing specific numbers, Oracle said the year-to-year change in software sales for its third quarter will be similar to the second quarter. Oracle's second-quarter sales of new software licenses fell 27 percent from the previous year. <br>
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In a conference call with analysts in December, Oracle executives had forecast a decline ``in the high teens'' during the just-completed quarter. <br>
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Oracle's warning probably will dash hopes for a revival in the depressed high-tech sector. ``This casts a pall over everything,'' said industry analyst George Gilbert of Credit Suisse First Boston. <br>
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Oracle's shares fell 63 cents to close at $15.99 on the Nasdaq Stock Market. After the company issued its warning, Oracle's shares plunged $1.27, or nearly 8 percent, in after-hours trading. <br>
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Many other tech stocks also dropped during after-hours trading. <br>
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Like other tech companies, Oracle is finding it tougher to sell products to cautious businesses that have curbed their spending until they are more certain the economy has recovered. <br>
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Some analysts believe Oracle's trouble also stems from concerns about the pricing of its database software and the effectiveness of its applications software. <br>
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``It feels like most of the tech industry is still in a rut, but Oracle may be in a little deeper hole than everyone else,'' Gilbert said. <br>
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Ellison believes Oracle's sales will pick up as soon as the economy regains steam. <br>
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``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,'' he said.
