Oracle Says Results to Exceed Forecasts

Oracle Corp. said Thursday that fiscal fourth-quarter profit and revenue would exceed forecasts on soaring sales of database licenses.

In a preliminary earnings statement, the software maker said profit rose to 24 cents a share, topping the company’s forecast of 21 cents to 23 cents. Sales grew 25% to $4.85 billion in the period ended May 31, exceeding the Redwood Shores, Calif.-based company’s previous forecast of 13% to 17%.

New license sales of Oracle’s database software increased by 18%, more than a fourfold increase in growth from the previous quarter. Database license revenue had disappointed investors in the previous three periods. Total new license sales increased 32%, reflecting gains from $18 billion in acquisitions engineered by Chief Executive Larry Ellison.

Oracle plans to release final results next Thursday.

“The database business continues to be the business where they have a high market share and the best competitive position,” said Lewis Kaufman of Thornburg Investment Management in Santa Fe, N.M.

Oracle said new license sales of applications increased 83%, including results from Retek Inc. and Siebel Systems Inc., acquired in the last year. Excluding those, new application licenses increased 56%.

Oracle is the No. 2 maker of applications, business programs used to handle tasks such as payroll and human resources, behind Germany firm SAP.

Excluding some costs, Oracle said it earned 29 cents a share, beating the 28-cent average estimate of 24 analysts surveyed by Thomson Financial.

The company reported net income of $1.02 billion, or 20 cents a share, on sales of $3.88 billion in the fiscal fourth quarter of 2005.

Shares of Oracle rose 85 cents, or 6.2%, to $14.55 in extended trading after the earnings statement. Earlier, the stock had closed up 51 cents at $13.70.