FRANCISCO, Dec 18, 2006 (AP Worldstream) -- Oracle Corp.'s
quarterly profit surged 21 percent as the business software
maker reaped the latest returns from a two-year shopping
spree that has eliminated several major rivals and shored
up its product line.
Redwood Shores-based company said Monday it earned $967
million (EUR 738.45 million), or 18 cents per share,
for the three months ended in November. That compared
with net income of $798 million (EUR 609.39 million),
or 15 cents per share, at the same time last year.
for Oracle's fiscal second quarter totaled $4.16 billion
(EUR 3.18 billion), a 26 percent increase from $3.29
billion (EUR 2.51 billion) at the same time last year.
not for expenses to cover the cost of its acquisitions
and employee stock options, Oracle said it would have
earned 22 cents per share. That matched the average
estimate among analysts surveyed by Thomson Financial.
appeared to be betting Oracle would top Wall Street's
forecasts. The company's shares rose 23 cents to close
at $17.91 (EUR 13.68) on the Nasdaq Stock Market before
the quarterly results were released, then retreated
by 33 cents in extended trading. Oracle's stock price
has climbed by nearly 50 percent this year, driven by
robust earnings growth.
latest performance marked the fourth consecutive quarter
in which Oracle's profit has increased by at least 20
percent, delivering on a management promise when the
company began snapping up other software makers in a
flurry of deals that have cost more than $20 billion
(EUR 15.27 billion) so far.
Ellison, Oracle's flamboyant chief executive, has pledged
only to pursue deals that will help the company boost
its earnings by 20 percent annually.
far, so good," Safra Catz, Oracle's chief financial
officer, said during a Monday conference call with reporters.
"We are trying to make sure we stay focused and
don't take any short cuts."
has been hitting its financial targets by maintaining
its leadership in the database software market while
boosting its sales of business applications products
that help companies, government agencies and schools
automate a wide range of administrative tasks.
company has mounted a more serious challenge to Germany-based
SAP in the applications market primarily through recent
acquisitions that included a $11.1 billion (EUR 8.48
billion) takeover of PeopleSoft Inc. and a $6.1 billion
(EUR 4.66 billion) purchase of Siebel Systems Inc.
deals wiped out two of Oracle's biggest competitors
while also filling in significant holes in the company's
software has now become Oracle's primary growth engine,
partly because the demand for new database software
has trickled off in the past few years.
sales of application licenses totaled $340 million (EUR
259.64 million) in the latest quarter, a 28 percent
increase from the same time last year. This yardstick
is particularly important to investors because the sale
of new software licenses generate a steady stream of
revenue for the future maintenance and upgrades of the
of Oracle's database and so-called "middleware"
software rose by 9 percent to $867 million (EUR 662
million) during the quarter.
MICHAEL LIEDTKE AP Business Writer
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