Oracle ups pressure on rival SAP

Oracle is closing the gap with SAP, says the firm's boss Larry Ellison

Shares in US business software company Oracle have risen by 3% after the firm unveiled robust quarterly earnings.

Oracle reported third-quarter net profits of $1.03bn (£525m), up from $765m at the same time last year.

Oracle has been challenging SAP, which is the market leader in software that helps companies run their business.

In January Germany's SAP reported weaker licence sales, which are a key performance measure indicating future service and maintenance revenue.

Closing the gap

Oracle said its new licence revenue rose to $1.39bn in the three months to 28 February, while sales of new software applications rose by 57% to $423m.

"We think we have a good chance to catch and pass SAP in the overall applications business," Oracle chief executive Larry Ellison told investors.

"We closed the gap and gained applications market share again this quarter."

Over the past three years Oracle has spent $20bn buying rivals such as Siebel Systems and PeopleSoft in a bid to challenge SAP.

SAP, meanwhile, has been struggling to maintain growth in the US, the world's biggest market.