Oracle Corp’s sales force pulled off a big feat in the business software maker’s latest quarter, sustaining a healthy clip of contract signings amid a dreary time for technology spending.
The efforts helped push Oracle’s sales and profit above Wall Street’s forecasts. Oracle also surprised investors by declaring its first dividend, a rare sign of confidence that comes as other bellwethers are cutting or suspending their dividends to save money.
Oracle’s fiscal third-quarter results, reported after the market closed on Wednesday, demonstrated that the firm was able to sustain a better-than-expected pace of contract signings. However, a stronger dollar hurt results, since deals done in other currencies weren’t worth as much in dollars.
Shares of Redwood Shores, California-based Oracle jumped US$1.09, or 6.9 percent, to US$16.92 in after-hours trading. Shares had gained US$0.43, or 2.8 percent, to close at US$15.83 during the regular trading session before Oracle reported its results.
Oracle chief executive Larry Ellison called the numbers a “tremendous achievement in the face of the serious slowdown in the world economy.”
In the latest period, which covered December through last month, Oracle said it earned US$1.33 billion, or US$0.26 per share, versus US$1.34 billion, also US$0.26 per share, a year ago.
Stripping out one-time charges, profit was US$0.35 per share, US$0.03 better than the average estimate from analysts polled by Thomson Reuters.
Total revenue was US$5.45 billion, a 2 percent increase over last year, though Oracle said sales would have jumped 11 percent without the currency fluctuations. Analysts predicted US$5.42 billion in sales.
A closely watched number for Oracle is its sale of new software licenses. That figure fell 6 percent to US$1.5 billion, which was within the company’s guidance. Some analysts were projecting a far worse decline.
Oracle’s main business is selling database software and so-called “middleware,” which allows business computing applications to talk to each other — both areas that are under pressure because of the economic malaise.
Oracle’s cash dividend will pay US$0.05 per share to stockholders of record as of April 8.
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