Oracle Profit Jumps by 28% as per First Quarter Report

Oracle Corp (ORCL.O) posted 28% boost of first quarter profit in this current financial year. The news makes the share up by 6% at Electronics Trading. The company also reported 14% rise of sales of new software licenses in the first quarter. The net income of Oracle rose to $1.1 billion, or 21 cents per share, in its fiscal first quarter ended Aug. 31, from $840 million, or 16 cents, a year earlier. The profit per share stands at 29 cent.

“Oracle is a very high quality company so we would expect them to do better than many technology companies. With Oracle to be one of the first out of the gate … it would be premature to extrapolate too much,” says Edward Jones analyst Andy Miedler.

However, the company reported 12-percent drop in sales of business management software to $331 million. SAP is the major competitor of Oracle in this segment. For the current quarter, Oracle forecast about new software license revenue to rise 5 percent to 15 percent, adjusted total revenue to rise 12 percent to 15 percent, and earnings per share excluding items at 35 cents to 36 cents.

Oracle generally charges customers annual maintenance fees equal to 22 percent of the original purchase price of their software. They use the fees to fix for bugs, upgrades and help desk support.

Source: Washington Post

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