Oracle profit up 11% on database sales

Software maker Oracle last night posted an 11 per cent rise in quarterly net profit.

Software maker Oracle last night posted an 11 per cent rise in quarterly net profit.

Oracle chief financial officer Mr Jeff Henley said he expects the world's second-largest software maker to post current-quarter earnings per share of 17 cents to 18 cents on a 6 per cent-10 per cent rise in revenue, in line with current Wall Street expectations.

Mr Henley also said he expects new sales of software to rise 5 per cent to 15 per cent.

As in past quarters, Oracle's flagship database business drove sales and profit growth, with revenues gaining 16 per cent from one year ago. Its applications business, where it competes
against SAP, PeopleSoft. and others, was flat compared with a year ago, reflecting weaker demand across that industry.

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Net income for the third quarter ended February 29th was $635 million, or 12 cents a share, compared with net income of $571 million, or 11 cents a share, a year earlier. Revenue rose 9 per cent, boosted by currency effects, to $2.51 billion from $2.31 billion a year ago, the company said.

Oracle is the third-biggest supplier of business applications software that is sold to large business customers. It is pursuing a hostile takeover of rival PeopleSoft, the number two company in that market. US regulators oppose the deal on antitrust grounds and have filed suit against Oracle.

On Wednesday, a federal court judge set a June 7th trial date for the US Department of Justice's lawsuit. The trial is expected to last about four weeks.