Oracle's Profit Jumps 35% on Strong Software Sales
Oracle said that quarterly profit rose 35 percent as new software sales soared 38 percent, beating Wall Street expectations at a time when investors are nervous that IT spending is slowing.
Shares of Oracle were up more than 3 percent in post-market trading after closing Wednesday down 2.3 percent at $20.76.
The world's No. 2 publicly held software maker reported fiscal second-quarter net income of $1.3 billion, or 25 cents a share, compared with $967 million, or 18 cents a year earlier.
New software sales rose 38 percent from a year earlier to $1.7 billion, led by a 63 percent increase in business management applications. Database and middleware sales rose 28 percent.
Oracle said it had profit excluding items of 31 cents per share, beating analyst forecasts of 27 cents, according to Reuters Estimates.
"It's quite a significant beat,'' said Bert Hochfeld, managing director of Hochfeld Independent Research Group.
"The real issue for Oracle is going to be guidance,'' he said. "I think many people knew or intimated that the quarter was going to be strong with regards to revenue.''
Oracle Chief Financial Officer Safra Catz was scheduled to issue the company's forecast for the current quarter during a conference call later on Wednesday.
Revenue climbed 28 percent to $5.3 billion, above the Reuters Estimates average forecast of $5.04 billion.
NetSuite, a software company controlled by Oracle Chief Executive Larry Ellison, on Wednesday raised $161 million with an initial public offering that priced well above expectations. (Read more here)