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Oracle's Disappointing Q1 Income

Oracle Disappointed Investors With First Quarter Report

Oracle handed investors a disappointing first quarter report, showing flat net income and unimpressive gains in database sales.

The database giant reported a net income of $519 million for the period.

"This week at Oracle OpenWorld, 35,000 customers and partners embraced our innovative next-generation Fusion Middleware with hot-pluggable components," said Oracle's President Charles Phillips. "Hot-pluggable interoperability with IBM middleware puts us in a strong and unique position in the middleware business."

The company had a hard time explaining why database license revenue increased only 1 % year-over-year to $492 million and why new software license revenue growth hit just 12 %.

In their defense, Oracle drew the attention to modest software sales in Europe as well as a few delayed large deals for these results. The investors weren't pleased, knocking 4 % off Oracle's share price.

Oracle is looking for second quarter revenue to come somewhere between 22% - 26% higher.