Oracle profits up on acquisitions

Oracle boss Larry Ellison, centre, has been on a spending spree

US software company Oracle has reported a jump in profits after acquisitions boosted its sales of business products.

Net income was $967m (£496m) in the three months to 30 November, compared with $798m in the same period a year earlier. Sales jumped 26% to $4.2bn.

Oracle has spent about $20bn over the past three years buying up rivals such as PeopleSoft and Siebel Systems.

That strategy may be working as Oracle is growing quicker than many other technology firms, analysts said.

Oracle's shares fell 1.7% during after-hours electronic trading in New York, indicating that they will decline when markets open on Tuesday.

Analysts said the main reason for the decline was that Oracle's earnings were in line with market estimates - in previous quarters they have exceeded expectations.

Oracle has been boosting earnings by selling business application products that help firms, government agencies and schools automate administrative tasks.