Oracle Reports Strong Earnings On Database SalesOracle Reports Strong Earnings On Database Sales

Oracle Corp. on Thursday reported a solid increase in net income for the third quarter, due to a strong quarter for database sales.

Net income for quarter ended Feb. 29 rose 11 percent to $635 million, compared to the same period a year ago. Earnings per share were 12 cents, compared to 11 cents last year.

Revenues were up 8.8 percent to $2.51 billion, which included $847 million in new software-license sales, a 12 percent increase over a year ago. The increase in new software licenses was equal to the previous quarter. Revenue from software license updates and product support were up 17 percent to $1.18 million.

Financial analysts polled by Thomson First Call had expected earnings of 12 cents a share on revenue of $2.51 billion.

"This was a very strong quarter for our database business," Larry Ellison, chief executive of the Redwood Shores, Calif., company, said in a statement. "Overall, our database growth was 16 percent."

The results come as Oracle continues its $9.4 billion hostile bid for rival PeopleSoft Inc. of Pleasanton, Calif. Oracle is fighting a Justice Department decision that the takeover would violate antitrust laws.