Oracle Profit Up 46% on Computer Services Surge
Oracle Corp., the world’s largest database software company, said Thursday its earnings jumped 46% in the fiscal second quarter, boosted by a surge in computer services revenue and tight expense controls.
Separately, National Semiconductor Corp., rival of top computer chip maker Intel Corp., reported a smaller-than-expected fiscal second-quarter loss, helped by sales of its microprocessors for low-cost PCs.
Oracle’s net income rose to $274.1 million, or 28 cents a diluted share, from $187.3 million, or 19 cents, a year ago. Analysts had expected 24 cents, according to the average estimate by First Call Corp.
Revenue rose 27% to $2.1 billion, with a 33% rise in services revenue to $1.29 billion.
Oracle shares have jumped 62% this year as the company took steps to reignite its business after reporting lower-than-expected earnings a year ago. The company resurrected its database and applications software sales to stay ahead of International Business Machines Corp. and Microsoft Corp. as well as catch up to rivals PeopleSoft Inc. and SAP of Germany.
The Redwood Shores, Calif.-based company said its database business, including database licenses, tools and related services, grew 25% to $1.5 billion this quarter. Revenue from applications software sales and related services rose 35%.
Database software sales in the Americas and Europe were strong, while the Asian market remained weak, the company said.
Oracle’s expenses in the latest quarter were lower than some analysts expected. Operating expenses rose 25%, sales and marketing costs rose 12%, and research and development grew 9.5%. General and administrative costs were up 25%.
The results were released after the close of trading. Oracle fell $1.81 to close at $34.94 on Nasdaq.
National Semiconductor said it had a loss before charges of $48.6 million, or 29 cents a share, in the latest quarter, much better than the loss of 49 cents analysts were expecting. The company had profit before charges of $54.7 million, or 32 cents in the year-ago period. Sales fell 29% to $510.1 million.
National shares fell $2 to close at $14.63 on Nasdaq.
