A tech firm falters just a bit, and investors mete out punishment; Oracle's earnings letdown prompts stock plunge on record daily volume; Ellison's loss: $2.16 billion
Article Abstract:
Oracle's earnings prospects have been brought into question following its 29% decline in company stock. The second-largest software company lost more than $9 billion in market value on Dec 9, 1997, as the stock market traded more than 171 million shares. CEO Lawrence Ellison lost $2.16 billion from his personal fortune of $7.35 billion. The numbers also illustrate how technology stocks, which along with financial stocks have driven the 1990s bull market, can show their vulnerability. Investor confidence has been shaken in Oracle's market growth, technology and management skill. Problems began when the company reported $187 million in 2nd qtr 1998 profits, or 19 cents a share. The figure represents a 4% growth from the 2nd qtr 1997 performance, but analysts had predicted a 23-cent profit per share. More alarming statistics revealed just a 3% gain for Oracle's leading database software and 7% for a popular applications program. Total Oracle sales rose 23% for the qtr, down from its average minimum 35% growth.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1997
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Novell posts flat 4th-quarter profit, but sales rose 5% from third period
Article Abstract:
Novell, the largest maker of network software, posted flat 4th qtr 1996 earnings but reported a 5% rise in sales, as compared to 3rd qtr 1996. Novell's results suggest that while rival Microsoft's Windows NT network operating system is gaining new customers more quickly, Novell's customers are upgrading to new versions of NetWare, rather than migrating to NT. NetWare server software sales rose 15% in the 4th qtr. Novell faces challenges from Microsoft and Netscape in the Internet/intranet market, and NetWare sales are not growing fast enough to generate dramatic growth. Novell's 4th qtr 1996 net income was $59 million, while its FY 1996 income dropped 63% to $126 million from $338.3 million in FY 1995. A series of unprofitable acquisitions and the discontinuation or sale of several major product lines have also affected Novell's 1996 performance.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1996
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