Oracle Profit Falls Below Expectations

Oracle Corp. reported lower-than-expected fiscal second-quarter earnings as sales in Asia and the U.S. telecommunications market fell below expectations and rising costs trimmed profit margins. The largest maker of database software said net income for the period ended Nov. 30 was $187 million, or 19 cents a share, up 4.5% from $179 million, or 18 cents, a year earlier. The results were less than the expected 23 cents a share. The Redwood Shores-based company has been trying to diversify its revenue sources, relying more on services and applications software as the market for database software slows. Analysts said they’re concerned that the company’s earnings aren’t growing faster in a market where Oracle is clearly dominant. Analysts said they expect Oracle shares to drop today. Results were released after the close of regular U.S. trading, in which Oracle’s shares rose $1.19 to close at $32.38 on Nasdaq.