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Oracle's profits up on license sales

Oracle saw its profits rise on sales of $3.5 billion during its most recent quarter.

Led by growth in its sales of software license updates and product support, Oracle's quarterly profit rose more than 40 percent year-over-year, during its most recent financial period, the company reported Monday.

With earnings per share of US$0.14, the company reported net income of US$765 million for its third quarter of fiscal 2006, which ended Feb. 28. Excluding certain special items, net income was US$1 billion, or US$0.19 per share, up more than 20 percent from the previous year.

Total revenue for the quarter came to US$3.5 billion, up 14 percent from the previous year.

Oracle's quarterly results were slightly ahead of analyst expectations of US$0.18 per share, excluding special charges, on revenue of US$3.5 billion.

Oracle sales jumped as it completed a string of high-profile acquisitions, including the purchases of PeopleSoft and Siebel Systems.

Software revenue was up 16 percent compared to the previous quarter, with software license updates and product support accounting for US$1.8 billion of the company's US$2.9 billion in software income.

The company also reported that European new license revenue grew by more than 100 percent year-over-year. Overall, new license revenue was up by 16 percent, totalling US$1.1 billion for the quarter.