Oracle profits down in Q1

Largely due to a fall in demand in Europe and Asia, Oracle posted net Q1 profits of $342m, or 6 cents a share, down from $511m or 9 cents a share in the previous first quarter.

Revenues were $ 2.03bn, down 10.5 % from $2.27bn last year.

New licence fees were down 23% at $549m.

The company predicted that revenue in the second quarter would continue the decline and be down 4% to 7% on Q2 a year ago, with new licence revenue declining by around 10-15%.

Oracle expects sales in Europe to pick up in the second quarter with the Asian market staying weak.

The company said that the downturn was the worst that it had seen since 1974.

Jeff Hanley, Chief Financial Officer commented "I am more pessimistic for the full year than I was at the start of the quarter. We do not expect a sharp improvement."