Oracle reported solid gains in third-quarter profit and revenue, driven by strong sales of the company's database products, but its applications business was flat.
For the quarter ended 29th February, net income rose 11 per cent, to $635 million compared with $571 million in the period a year earlier. Revenue increased 9 per cent, to $2.5 billion, from $2.3 billion. The
New software license sales were up 12 per cent, to $847 million, and revenue for software license updates and product support was up 17 per cent, to $1.2 billion.
Oracle's database business grew 16 percent, but revenue was stagnant in the applications business. "This was a very strong quarter for our database business," said Jeffrey Henley, chairman and cting chief financial officer.
CEO Larry Ellison said Oracle's service and consulting business is shrinking while its software subscription business grows. "The most profitable portion of Oracle is also the largest portion of our business," he said.
Oracle said it spent $15 million during the third quarter on its proposed acquisition of PeopleSoft, and a total of $43 million since making its initial offer nine months ago.