Oracle Net Income Drops 12%

Technology bellwether Oracle Corp. said Thursday that its profit slid 12% as sales of its business software shriveled during its fiscal second quarter, a period Chief Executive Larry Ellison called the company’s toughest in a decade.

But the worst is probably over for the company, executives said.

“We are assuming we hit the bottom” in the latest quarter, Chief Financial Officer Jeff Henley told analysts in a conference call.

The Redwood Shores, Calif., company reported net income of $549.5 million, or 10 cents a share, for the three months ended Nov. 30, down from $622.8 million, or 11 cents a share, a year earlier.

Results matched the lowered expectations of analysts surveyed by Thomson Financial/First Call. Oracle warned last month it wouldn’t meet its earlier earnings target of 11 cents a share. Revenue fell 11% to $2.36 billion from $2.66 billion.

The erosion reflects the slowing demand for Oracle’s software products--once regarded as must-have technology for companies looking to automate their businesses on the Internet. Oracle’s sales of new software licenses plunged 27%.

Ellison blamed the company’s slump on a national recession that worsened after the Sept. 11 terrorist attacks. “When the economy improves, we will earn a lot more.”

Henley forecast third-quarter earnings of 10 cents a share, flat compared with the year earlier, and fourth-quarter results that are 2 cents to 3 cents better than the 15-cent profit Oracle reported in the year-ago period

The company’s outlook encouraged investors hoping for signs of a turnaround in the high-tech sector. After losing 43 cents to close at $14.67 on Nasdaq, shares regained 35 cents in after-hours trading that followed the earnings announcement and conference call.In other earnings news:

* Optical networking equipment maker Ciena Corp. posted a fourth-quarter loss of $1.79 billion and predicted it would experience further losses because of uncertain market conditions. Shares fell 17%. For the three months ended Oct. 31, Ciena posted a net loss of $5.51 a share, contrasted with year-earlier net income of $25.8 million, or 9 cents a share. Before one-time charges--including a $1.72-billion write-down of goodwill--earnings were $17.1 million, or 5 cents a share. Results met analysts’ reduced estimates, according to Thomson Financial/First Call.

Revenue rose 28% to $367.8 million.

Shares fell $3.03 to $14.94 on Nasdaq.

The Linthicum, Md., company said it expected a loss of 8 cents to 12 cents a share next year. Analysts were expecting earnings of 34 cents a share.

* Lucent Technologies Inc. said Thursday that it expects a wider loss than Wall Street forecast for its fiscal first quarter, with revenue barely half what it was a year ago because of a continuing industrywide downturn.

Shares of the largest telecommunications equipment maker fell $1.21 a share, or 16%, to $6.52 on the New York Stock Exchange.

Murray Hill, N.J.,-based Lucent said it expects a loss of 23 cents to 26 cents a share from continuing operations for the three months ending Dec. 31. Analysts surveyed by Thomson Financial/First Call predicted a loss of 17 cents.

* Adobe Systems Inc. reported that fiscal fourth-quarter net income fell 57%, to $434.3 million, or 14 cents a share, and warned that first-quarter results will fall slightly short of expectations.

Excluding restructuring and one-time charges, earnings were $48.7 million, or 20 cents a share. Analysts expected 21 cents. Revenue fell 26% to $264.5 million.

Shares of Adobe fell $1.15 to $30.63 in Nasdaq trading.