Oracle benefits from license sales
BY AP Wire Service
Wednesday, March 21, 2012
3/21/12 at 4:35 AM
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.
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.
