WASHINGTON: Oracle Corp, the world’s second-largest software maker, reported its fourth-quarter profit was up 25 per cent over the same period of 2009 at $2.36 billion.
The figures announced by the California-based company exceeded analysts’ estimates compiled by the Bloomberg financial news agency.
Sales for the quarter, which ended May 31, were up 39 per cent at $9.5 billion, it said. Contributing to the jump in earnings was Sun Microsystems Inc, which Oracle bought this year and which returned to profit after the sale.
It was part of a spending spree for Oracle that expanded its product line and lowered its costs. Also helping the company was the end of the recession, which prompted customers to buy more of its programmes.
Oracle President Safra Catz told investors on a conference call that business was “very strong” in Europe, where the company has a diverse group of customers across the region.
“The issue that everybody is concerned about is that Europe is getting worse. And Oracle didn’t acknowledge seeing any weakness in Europe,” said Citi analyst Walter Pritchard.
Oracle, which competes with International Business Machines Corp, SAP and Hewlett-Packard Co, is benefiting as corporations loosen purse strings and begin spending on IT equipment and upgrades, making their businesses more efficient.
“Our customers are making very, very significant investments,” Catz said during the conference call.
Oracle posted profit, excluding items, of 60 cents per share, for its fiscal fourth quarter ended May 31, handily beating the average Wall Street forecast of 54 cents, according to Thomson Reuters I/B/E/S.
New software sales rose 14 per cent from a year earlier to $3.1 billion. The company had forecast that sales of software would rise between 3 per cent and 13 per cent.