Oracle has posted strong third quarter results exceeding analysts' estimates as companies increase their IT spending.
According to the company, revenue for the third quarter was $8.8 billion, jumping 37 per cent from the previous year. Oracle reported a net income of $2.1 billion, up by 78 per cent, while the earnings per share was $0.41.
The revenue from the company's hardware business division was $1 billion. Oracle co-president Safra Catz revealed that its hardware business had seen a 55 per cent growth in gross margins, adding, “We are now completely confident that we will exceed the $1.5bn profit goal we set for the overall Sun business for the current fiscal year.”
The rise in the company's hardware group could be attributed to new software releases and the integration of Sun Microsystems products rather than the rise in IT spending by organisations.
Revenue from new software licenses grew by 29 percent to $2.2 billion while updated software licenses and product support divisions generated revenue of $3.7 billion.
Oracle chief executive Larry Ellison, said that the company was pushing heavily into the cloud computing market, Computer Weekly reports.
“For example, Salesforce.com's new multi-year contract enables it to continue building virtually all of its cloud services on top of the Oracle database and Oracle middleware. Oracle is the technology that powers the cloud,” he said.