Oracle, the California based business software developer, has announced that its 2nd quarter profit rose 12 percent breaking a two quarter revenue decline, amidst cost cuts, improving economy and strong software maintenance programs.
The share price of the world’s biggest business management software company rose by 4.55 percent to $23.92 during after hour trading. The company's share price has risen by 29.63 percent since the beginning of the year after suffering a significant fall in March when it reached 13.80 cents.
The company has also predicted that the pending takeover of Sun Microsystems will be completed in January which, as of now, is halted due to a European antitrust probe.
Oracle also announced that its earnings, for the quarter ending November 30, stood at $1.46 billion or 20 cent per share in contrast with last year's 2nd quarter earnings of $1.3 billion or 25 cents per share.
However, excluding stock compensation, restructuring and acquisition costs, the earnings came out to at 29 cent per share.
The company, headed by CEO Larry Ellison, had shown admirable stability during the recession as most of its revenue came from support payments from past sales.
Meanwhile, the company’s revenue jumped by 4 percent to $5.86 billion indicating that corporate technology spending is increasing, which in turn spells good news for the whole technology sector.
Oracle, like Microsoft and IBM, is one of the Bellwethers of the technology market globally. The fact that it is doing relatively well is a good sign for the rest of us; if Oracle's clients are doing well, this bodes well for the thousands of other companies which provide support, training and assistance for the Oracle ecosystems.
(ZD Net Asia)
(Wall Street Journal)