Computer business Oracle revealed a higher profit than ever before, attributed to an increased demand for new software licenses and database software accompanied by a greater European presence.
The fiscal period ended February 28, and the business software maker reported a third-quarter net income of $765 million, 14 cents per share up from the prior net income of $540 million, 10 cents per share a year ago. Revenue also rose from $2.95 billion to $3.47 billion. Oracle posted a per-share profit of 19 cents, excluding items, which was up from Wall Street estimates put together by Reuters earlier stating a per-share profit of 18 cents.
Oracle has spent nearly $19 billion buying competitors in an attempt to match some of Germany’s biggest rivals, namely SAP and get a larger slice of the market for business software that automates human resources, accounting, inventory management and many other critical aspects. After implementing a strategy that included acquiring companies such as PeopleSoft and Siebel systems, Oracle’s stock has risen only 4 percent in the past year, mostly because investors were skeptical of the computer business’ plan. SAP shares that were traded in New York have gained 32 percent with the Oracle’s new business wins.
New licenses of Oracle’s business application, database and middleware software increased 16 percent to $1.096 billion according to the company’s spokespeople. At the same time, sales of new licenses for its applications software exploded 77 percent to $269 million. Most marked growth for applications revenue occurred in Europe where they more than doubled.
Blogged By: Computer Consulting Kit