Oracle posts 35% rise in quarterly profit

Oracle Corp, the largest maker of database software, posted a 35 percent rise in quarterly profit on strong new software sales.(File Photo)

Oracle Corp, the largest maker of database software, posted a 35 percent rise in quarterly profit on strong new software sales, beating expectations at a time when investors are wary that growth in technology spending may be slowing.

Shares of Oracle rose 5.8 percent after the results on Wednesday and some analysts said the world's No. 2 software maker had a strong portfolio of products that would help shield it from a slowdown in the U.S. economy.

California-based Oracle said net income for its fiscal second-quarter ended Nov. 30 rose 35 percent to 1.3 billion U.S. dollars, or 25 cents per share, from 967 million, or 18 cents a share, a year earlier.

Profit excluding items was 31 cents per share, beating the average analyst forecast for 27 cents, according to Reuters Estimates. Revenue climbed 28 percent to 5.3 billion, above the average forecast of 5.04 billion.

"We were thinking a penny or two beat would be a good quarter. This was a great quarter," said Goldman Sachs analyst Sarah Friar. "They are taking share away from the small guys. They are doing a great job of cross-selling from their install base."

Oracle said new software sales rose 38 percent to 1.7 billion, led by a 63 percent increase in business management applications. Database and middleware sales rose 28 percent.

Oracle's growth has accelerated over the past few years as it built on an acquisition binge, snapping up smaller software makers. In addition to acquiring new customers and boosting revenue, Chief Executive Larry Ellison said the deals have helped boost sales of existing products.