Oracle Quarterly Profit Up a Surprising 31%

Oracle Corp. said its earnings beat diminished expectations in the fiscal first quarter, rising 31% to $527 million, or 36 cents a share, as revenue climbed 22% to $2.9 billion. The No. 1 database software maker had net income of $402.8 million, or 27 cents, a year ago.

Oracle’s revenue gain surprised investors who were disappointed in the prior quarter’s results, when businesses delayed software purchases because of the year 2000 bug. Oracle executives said the strong sales growth is continuing in the current quarter.

Oracle also said it fired about 325 people, or less than 1% of its work force, in a move to cut costs. The cuts were made in all units except for product development.

The most recent earnings, which were reported after the close of U.S. trading, exceeded 32 cents, the average estimate of analysts polled by First Call Corp. Oracle shares closed down $1.31 at $25.13 on Nasdaq.