Oraclereported a profit that jumped from a year ago and easily outstripped what Wall Street was expecting, suggesting the recovery in technology spending remains on track as businesses spend on big-ticket items like computer systems.
AP
Oracle's headquarters in California.
The business software giant reported earnings of 60 cents a share in its fiscal fourth quarter, excluding one-time items, up from 46 cents a share a year ago.
Revenue for the most recent period, also reported on a non-GAAP basis, rose 14 percent to $9.6 billion, compared with sales of $6.881 billion last year.
A group of analysts who follow the company predicted that Oracle would report a profit of 54 cents a share on sales of $9.497 billion.
Shares of Oracle, which closed at $22.22 Thursday, were up almost 3 percent in extended trading. Click here for after-hour Oracle quotes.
"We executed better than expected on both the top and bottom line," Chief Financial Officer Jeff Epstein said in a statement.
Oracle said that Sun, which it acquired in April 2009, contributed more than $400 million to its non-GAAP operating income. The company expects Sun to "meet or exceed" its goals of contributing $1.5 billion to non-GAAP operating incoming in its fiscal year 2011, and $2 billion the year after that.
New software sales rose 14 percent from a year earlier to $3.1 billion. Three months ago, the company forecast that sales of software would rise between 3 percent and 13 percent.
Oracle President Charles Phillips said Oracle was taking "large chunks" of share away from key rival SAP in the market for business management software.
Oracle's net income, which includes one-time items, was $2.4 billion, or 46 cents per share, compared with $1.9 billion, or 38 cents per share, a year earlier.
"Things were relatively strong. It is their fourth quarter so the sales people have the incentive to outperform, let's just say," said Kim Caughey, an analyst at Fort Pitt Capital. the margin looked good and the topline looks pretty strong."
Oracle also declared a dividend of 5 cents per share.
- Reuters and AP contributed to this report.