Applications boost Oracle profit increase

Increased applications sales took Oracle to a 15 per cent rise in second-quarter profits and predictions of an economic upturn.

For its second quarter, Oracle earned $617 million compared with net income of $535 million at the same time last year. Revenue totaled $2.5 billion, up 8 per cent from $2.3 billion a year earlier.

"Business optimism seems to be improving for the first time in several years and that should improve technology spending," said Oracle chief financial officer Jeff Henley. "We can see no reason why (the trend) shouldn't continue."

Oracle's new software licenses totaled $849 million in the quarter, a 13 per cent increase from $752 million at the same time last year. Applications saw the biggest improvement. The company sold $137 million in applications licences during the quarter, a 27 per cent increase from $108 million at the same time last year. Database licenses totaled $712 million, up 11 per cent from $644 million last year.

Deals worth $500,000 or more accounted for 36 per cent of revenue, up from 31 per cent in the year ago period. "There has been an upturn, but it hasn't been dramatic," said Larry Ellison, Oracle's founder, chairman and chief executive.

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