Oracle Q1 Profits Up 20 Per Cent

Oracle has posted a 20 per cent rise in profits for the first quarter of their fiscal year, boosted by the sale of Sun Microsystems products and software licenses.

According to the Wall Street Journal, Oracle shares also rose by 4.3 per cent in trading hours after the company reported better than expected results for the first fiscal quarter.

The hardware sales for the quarter amounted to $1.7 billion, accounting for 23 per cent of the revenue.

Oracle co-president Safra Catz said that the company's software business grew across all regions and it experienced higher than expected growth from the hardware division, with Sun Solaris servers and Exadata offering responsible for much of the increase.

CEO Larry Ellison said that the company was planning to drop unprofitable businesses in its Sun Microsystem line in order to boost profit margins to 60 per cent, up from the current 48 per cent.

Oracle's new co-president, Mark Hurd, the former HP CEO, suggested that the company was planning to invest $4 billion in its research and development department.