Oracle Corp fared far better than analysts anticipated in its fiscal second quarter, easing worries that the sagging US economy and slowing corporate spending on technology would drag down the business software maker.
The firm said on Wednesday that it earned US$1.3 billion, or US$0.25 per share, for the three months ended Nov. 30. That represented a 35 percent increase from net income of US$967 million, or US$0.18 per share, at the same time last year.
If not for stock option expenses and the costs incurred in recent acquisitions, Oracle said it would have earned US$0.31 per share -- US$0.04 per share above the average estimate among analysts surveyed by Thomson Financial.
Revenue totaled US$5.31 billion, a 28 percent improvement from the US$4.16 billion posted last year. Analysts, on average, had projected that revenue would be US$5.04 billion.
Even more important to Wall Street, Oracle's sales of software licenses climbed by 38 percent to US$1.67 billion.
Analysts had predicted gains in the 20 percent range.
Software sales are closely watched because new licenses establish a pipeline for future revenue from product upgrades and maintenance.
Oracle shares fell US$0.49 to finish Wednesday's regular trading at US$20.76, then bounced back US$0.74 in extended trading after the company's quarterly results were released.
"It was a very strong quarter, based on just about every metric you can think of," Global Equities Research analyst Trip Chowdhry said.
Oracle has been on a roll through most of the past two years, reaping the benefits of a shopping spree that has turned it into a one-stop shop for database software and applications that automate a wide variety of business operations.
By spending more than US$25 billion snapping up its smaller rivals since 2004, Oracle has created the software industry's equivalent of a Costco warehouse, Cowen and Company analyst Peter Goldmacher said.
"Oracle looks to be better positioned than just about all its competitors," Goldmacher said.
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