Oracle Expects Rise in Q4 Profits

Oracle has reported a rise in the sales of company's software and server products, resulting in earnings of $0.46 per share.

The company has seen an accelerated growth in its software and server division, thanks to its $7.6 billion acquisition of Sun Microsystems.

The takeover has expanded Oracle's product portfolio, as well as its customer base, helping to maintain a steady revenue stream for the company through the purchase of support contracts.

Mark Murphy, an analyst with Piper Jaffray, told Business Week: “The lesson is Oracle has a unique business model, with earnings that are both resilient and powerful.”

Oracle's sales of new software licences increased by 14 per cent to $3.14 billion, and its fourth-quarter net income rose by 25 per cent, ending at $2.36 billion.

Oracle President Safra Catz said that he expects a revenue increase of between 44 and 48 per cent on the previous year, equating to total profits of around $7.29 to $7.49 billion.