Strong dollar hits Oracle profits

Oracle profits have not failed to grow since November 2005

The business software manufacturer Oracle's profit for the three months to the end of November have slipped.

Net income only fell $7m (£4.7m) from the same period last year to $1.3bn, but it was nonetheless the first time it had not grown for three years.

Oracle said its profits would have been better if the US dollar had not strengthened so much in the quarter.

It said that if currency rates had been the same as last year its profits would have grown 11%.

"They are managing through this downturn relatively well, but they're not immune for a slowdown," said Jeff Gaggin at Avian Securities.

Oracle's revenue rose 6% during the three month period, which was worse than had been expected.