Summary Box: Oracle's fiscal 2Q showing casts pall

AP News
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Posted: Dec 20, 2011 6:52 PM
Summary Box: Oracle's fiscal 2Q showing casts pall

DISAPPOINTING PERFORMANCE: Oracle's earnings and revenue for its latest quarter fell well below analyst estimates. In a telltale sign of weakness, the company's sales of new licenses for its business software edged up just 2 percent from the same time last year. Analysts had projected a double-digit gain.

THE FEAR: Wall Street has been worried that the recent economic turbulence caused by Europe's debt woes would cause major companies and government agencies to curtail technology spending. Oracle performance suggested a slowdown has already begun.

THE REACTION: Oracle Corp. shares fell 10 percent after the results came out late Tuesday.