Oracle Closes Fiscal Year With Surging Application SalesOracle Closes Fiscal Year With Surging Application Sales

Oracle Wednesday reported that sales surged 26% in its fourth quarter ended May 31 with the company's earlier acquisition and integration of PeopleSoft providing a year-over-year boost in application revenue.

For the quarter, Oracle reported total revenue of $3.88 billion, up 26% from the same period last year. Net income rose a more modest 3% to $1.02 billion or 20 cents per share.

Total software revenue increased 24% to $3.12 billion during the quarter, the vendor said. Database and middleware new license sales increased 16% to $1.26 billion and new license sales of applications grew 52% to $350 million. Services revenue increased 35% to $755 million.

President Safra Catz said in a statement that the rapid integration of PeopleSoft, which Oracle acquired in January, into the company's business contributed to the strong growth in application sales and profits in the quarter.

For the full fiscal 2005 Oracle reported a 16% year-over-year increase in revenue to $11.8 billion and an 8% increase in net income to $2.9 billion or 55 cents per share. For the year, software revenue increased 17% to $9.4 billion. Database and middleware new license sales increased 13% to $3.3 billion and increased new license sales of applications grew 28% to $785 million. Service revenue increased 14% to $2.4 billion.