Reading the tea leaves of the database-software maker's quarterly earnings report, investors panned Oracle , which fell 8-5/16 to 28-9/16 after reporting Thursday third-quarter profits of 20 cents per share, a penny better than analysts' targets. However, revenue growth of 19 per cent was less than the 26 percent expected. The company blamed the disappointment on unexpectedly light sales of database and applications software.More than 100 million Oracle shares traded. A spokesman for the Nasdaq said the Oracle spill was responsible for a loss of roughly 10 points off the index Friday.

The Nasdaq Composite index closed down 30.72 points at 2,381.53. The stock price tumble was more than one analyst had expected.

Rick Sherlund, an analyst at Goldman Sachs, said he had expected Oracle shares to close at about $30 Friday, addingthat the company's revenue problems may not be resolved in the near term.

"They said the pipeline looks strong, but they've had difficulty turning that in to revenue," Sherlund said.

At least a half-dozen investment banks downgraded Oracle's stock, among them: Merrill Lynch; Warburg Dillon Read; Piper Jaffray; Donaldson, Lufkin & Jenrette; Dain Rauscher; and NB Montgomery Securities.

Year 2000-related issues continue to plague Oracle, along with such competitors as PeopleSoft Inc. and Germany's SAP AG. After the company reported earnings late Thursday, Jeff Henley, Oracle chief financial officer, expressed uncertainty regarding when the industry will recoup Y2K-related losses. Sherlund noted that Oracle's revenue may continue to suffer for the next few quarters.

"Companies are reluctant to buy stuff that's disruptive to their infrastructure" as the new year approaches," Sherlund said. "That suggests it could be a difficult year ahead." Meanwhile, signs that Oracle is making up ground in thecustomer-management software segment walloped Siebel Systems (SEBL), a maker of sales automation and customer- service software maker which fell 3-7/8 to 49-1/8.