Oracle's profit, outlook improves

Oracle's chief executive may be facing better times ahead

Software giant Oracle reported a 15% jump in quarterly profit as demand for its key products and services improved.

Chief Financial Officer Jeff Henley said that the business environment has improved and that a weaker dollar also boosted sales.

Consumers and companies, it seems, are willing to spend again after delaying many purchases as the economy stalled.

Buoyed by this, Oracle has forecast growth for the next quarter that is better than many analysts expected.

Improving optimism

"Business optimism seems to improving for the first time in several years", said Oracle's Henley.

"We are more encouraged right now than we have been for years".

Net profit in the second quarter was $617m (£353m; 500m euros), up from $535m in the same period a year earlier.

Total sales, including services upgrades and support, added 8% to $2.5bn.

Kick-start

The company has benefited as measures such as tax cuts kick-started a recovery in the world's largest economy.

The latest GDP figures showed the US economy charging ahead at an annualised rate of 8.2% during the July to September period.

While a lack of job creation is causing concerns, consumer spending is showing signs of pick up.

As a result, Oracle said it expects to earn between 11 cents and 12 cents a share in the quarter ending February, with sales climbing as much as 10%.

Analysts had been more cautious with their targets and Oracle shares climbed more than 3% in extended US trading.