Strengthening dollar stores up trouble for Oracle

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Strengthening dollar stores up trouble for Oracle

Alex Scroxton

Oracle's Q1 '09 results provided a glimmer of hope among this week's forecasts of falling profits in the technology sector, as the software giant posted revenues of $5.3bn (£2.9bn), up 18% year-on-year, and GAAP net income of $1.1bn, up 28% on the same period.

The figures beat analyst expectations by 2%, according to a poll conducted by Thomson Reuters.

In spite of the upbeat financial picture, and CEO Larry Ellison's claim that Oracle's database market share now exceeded that of the next four vendors combined, the firm acknowledged that the rebounding dollar looked set to take a chunk out of Oracle's future sales.

During a conference call with analysts, co-president Safra Catz said that the dollar's appreciation over the summer was set to hurt new license sales in Q2, cutting around 3% off the firm's estimated Q2 growth of around 10%.

Catz insisted that this forecast slump would not impact Oracle's market position.

Meanwhile, Toshiba was painting an altogether greyer picture as it updated its previous business forecasts for 2008. The Japanese tech giant now believes it will make post a net loss of 50bn yen ($259m) for the six months to the end of September. It also slashed its full-year forecast, predicting a 46% slide in net profit to just 70bn yen.

Toshiba blamed the weakening semiconductor market and significant price erosion in NAND flash memory for its woes.

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