Oracle sees Q2 earnings soar 40%

Driven in part by strong applications software sales, Oracle has seen its second-quarter net income soar 40% from the same period last year, to $US384 million.

Driven in part by strong applications software sales, Oracle has seen its second-quarter net income soar 40% from the same period last year, to $US384 million.

Oracle's per-share earnings for the second quarter, which ended Nov. 30, were 26 cents, ahead of the 22 cents per share predicted in a poll of 30 analysts by First Call.

Revenue was $2.3 billion for the second quarter, compared to $2.1 billion during the same period last year, the company said.

Oracle attributed the growth to its rapidly expanding ERP (enterprise resource planning) and CRM (customer relationship management) application businesses. Applications software generated $168 million in sales for the quarter, up 31% from last year.

"We are the only ERP vendor that is growing because we are the first company offering an e-commerce Internet suite. That is why our applications business is doing so well," Larry Ellison, Oracle's chairman and chief executive officer, asserted in a conference call today.

Total software license revenues were up 18% over last year, Oracle Chief Financial Officer Jeff Henley said during the call. Core database software sales were $651 million, up 17%, he said.

Oracle performed well nationally and internationally. "The interesting thing is the balance of international (sales). Oracle saw a strong economic recovery in Asia in the second quarter. And Europe performed extremely well this quarter. In fact, we have more profit potential in Europe than the US right now," Oracle President Ray Lane said.

Oracle's shares on the Nasdaq stock exchange closed at $76.94, down $2.87. The financial results were announced after the close of market.

Oracle Corp., in Redwood Shores, California, can be reached at +1-650-506-7000 or http://www.oracle.com.

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