Oracle reported a 25% rise in its fiscal first-quarter profit late last week, a jump that was helped by higher-than-expected sales of software titles gained through the company's policy of acquisition.
According to a Reuters report, the company's revenue and earnings exceeded Wall Street expectations. Net income increased to $840 million, or 16 cents a share, in the period, which ended Aug. 31, from $670 million, or 13 cents, a year earlier.
Revenue rose 26%, to $4.53 billion, surpassing the analyst target of $4.36 billion, and earnings (not counting stock-based compensation expenses and acquisition-related charges) were 22 cents a share, exceeding Wall Street expectations by one cent.
The Reuters report notes that Oracle is the leader in database software, ahead of IBM, but it trails main rival SAP in business applications. However, it's clear that Oracle's strategy for expansion and growth is working, and these results were due in a large part by the sales of products that were not in Oracle's lineup a year ago. Last year was a busy year for CEO Larry Ellison and co., with Hyperion Solutions, Stellent, MetaSolv and a number of other software companies added to the Oracle stable.
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