SAN FRANCISCO (AP) - Oracle’s sales of new software licenses picked up in its latest quarter, helping to ease concerns about the company’s future as it loses customers to rivals offering less expensive alternatives.
The business software maker earned $2.5 billion, or 49 cents per share, during its fiscal third quarter _ a period spanning from December through February. That represented an 18 percent increase from net income of $2.1 billion, or 41 cents per share, at the same time last year.
If not for acquisition expenses and other costs, Oracle said Tuesday that it would have earned 62 cents per share. That figure soundly exceeded the average estimate of 56 cents per share among analysts surveyed by FactSet.
Oracle Corp. thrived, despite meager growth in its total revenue, which grew just 3 percent from last year to $9 billion. The total mirrored analyst forecasts.
The performance might have been perceived as a flop if not for a 7 percent increase in revenue from new software licenses. Investors focus on this category because the new licenses unleash a steady stream of future revenue from maintenance and software upgrades. The new business also helps offset defections to companies that specialize in Internet-based software known as cloud computing.
The increase in new licenses indicated that Oracle bounced back from the problems that turned its previous quarter into a huge letdown. Oracle’s year-over-year sales of new software increased by just 2 percent in that period, well below management and investor expectations. After those numbers were released, Oracle’s plummeted to its biggest one-day drop in nine years.
Wall Street was much more upbeat about the latest quarter. Oracle shares gained 77 cents, or 2.6 percent, to $30.87 in extended trading.
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