Oracle quarterly profits up 42%

Oracle has been on an acquisition spree

US software firm Oracle has posted a higher-than-expected 42% gain in quarterly profits, the biggest increase in earnings for more than a year.

Net income was $765m (£435m) for the three-month period ending February.

The figures are the highest since Oracle acquired PeopleSoft at the end of 2004 in a $10.3bn takeover.

The acquisition sought to boost Oracle's share price and ensure it stayed ahead of Germany's SAP, the world's third-largest software firm.

The company has since taken over Siebel Systems for $5.85bn, and also acquired a variety of smaller software manufacturers including Retek.

That shopping spree has expand Oracle's market and sales of new software licenses in the last quarter totalled $1.1bn, up 16% on the previous year.

New licenses are seen as a key measure of future earnings.

Oracle's shares rose 12 cents to $13.72 on the Nasdaq stock index.