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Mr. Ellison also pointed to the company's new contract with Merrill Lynch, which he said replaced PeopleSoft 7 software with Oracle's enterprise application software.
The decision by the Justice Department lawyers could be a significant blow to Oracle, which has been locked in an eight-month battle to acquire PeopleSoft, a competitor in the market for enterprise application software.
PeopleSoft grew a blistering 76% in enterprise application software last year and is likely to overtake Oracle this year.
Following PeopleSoft's warning, Morgan Stanley cut its earnings estimate for the provider of enterprise application software to 13 cents per share from 20 cents.
Software defects due to coding errors continue to plague the industry with disastrous impact, especially in the enterprise application software category.
"One of the themes we've invested heavily behind is this intersection between big data and traditional enterprise application software," says Ajay Agarwal of Bain Capital Ventures.
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Microsoft's merger talks with SAP, the largest maker of enterprise applications software, with revenue of $8.6 billion last year, strongly suggest that Microsoft's ambition is to become the leader in the corporate software market and climb to the top as quickly as possible.
This fall Oracle released a critically acclaimed, Internet-friendly version of its enterprise applications software, which automates corporate departments.
"The powerful combination of PeopleSoft and J.D. Edwards creates the second-largest enterprise applications software company in the world," PeopleSoft Chief Executive Craig Conway Craig Conway declared proudly in a statement.
Censoft has landed some big accounts for high-end enterprise applications software and consulting, including the Bank of China, Huawei (the router company sued by Cisco) and the Beijing city government.
The No. 1 leader in enterprise applications software, SAP, invented its own architecture, called mega-tenancy, to compete with multitenancy, while Oracle, the leading database vendor, tried to sell virtualized private databases and other innovations as an alternative.
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