Oracle beats forecasts with $7.59bn quarter earnings

Oracle has reported sales of $7.59bn in the three months ending 31 August, up 50% on the same period the year before and above average analyst forecasts of $7.32bn.

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Earnings of 42 cents a share were up 38% on the previous year, beating the forecast average of 37 cents.

Net income rose 20%, new software license sales rose 25% to $1.29bn, sales of new database and middleware licenses rose 32%to $937m, and business applications licensing revenues increased 10% to $349m.

The results restored faith to technology sector investors shaken by Intel's recent revenue shortfall warning, according to the Financial Times.

Oracle's shares rose 4% in extended trading in New York to $26.40.

Oracle's earnings indicate corporate spending has supplanted consumers as the main driver of demand for computers and software, analysts said.

Corporate technology spending will increase 2.9% in 2010 to more than $2.4 trillion, after a 5.9% decline in 2009, according to research firm Gartner.

Chief executive Larry Ellison (pictured) said Oracle had achieved its aim of profitability at Sun Microsystems, which it acquired in January for $7.3bn.

"We can dramatically improve margins and double the top line," chief executive officer Larry Ellison said, without giving a timeframe.

According to analysts, Oracle is counting on hardware to bring growth and is assembling more pre-packaged systems that combine its software with Sun servers.