Oracle's share prices saw a decline in the German stock market after the company confirmed that it had missed the sales and revenue targets set for second quarter in the running fiscal.
The decline in sales and revenue, according to the company, declined because of slower demand in the market for computer servers, applications as well as databases.
Previously, analysts had estimated that the company's sales could go all the way to $9.23 billion in Q2, meaning a profit of 57 cents per share. However, contradicting those estimates, the sales figure froze at just $8.81 billion - significantly below what was being expected from the second largest software maker in the world.
Oracle confirmed that its net income during the second quarter rose by 17 per cent, to $2.19 billion, meaning a 43 cents hike per share.
And, when it came to new software and licenses the sales increased by approximately 2.5 per cent to $2.05 billion. The expectations were, in fact, a bit higher at $2.28 billion (according to Sherlund estimation).
"This is indicative of some pullback in general enterprise IT spending," Josh Olson, an analyst at Edward Jones & Co. said in his reaction to Oracle's below-expectation performance during Q2, according to a BusinessWeek report.