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Earnings report spikes Oracle stock

After announcing a 110 percent jump in first-quarter earnings, Oracle's stock spiked up in heavy trading today.

After announcing a 110 percent jump in first-quarter earnings, which reflected strong database sales, Oracle's stock (ORCL) spiked up in heavy trading today, according to Reuters.

The stock was up $3.75 to $41.125 on volume of 6.1 million shares for the database and Internet software company, a Reuters report said.

Oracle reported net profits of $113 million, or 17 cents a share, for the quarter ending August 31, compared with $54 million, or 8 cents a share, for the same period a year ago, as previously reported by CNET. Last year, however, first-quarter earnings were offset by a $34 million after-tax charge.

Revenues climbed 36 percent to slightly more than $1 billion, compared with the same period a year earlier.

"Their earnings were in line with the market's expectations, so there were no surprises to the bottom line," said Andrew Roskill, an analyst with Smith Barney. Wall Street had expected earnings around 18 cents a share.

The company's database sales were stronger than expected, largely driven by its Oracle 7.3 sales, Roskill noted.

But revenue from licensing applications was weaker than expected, as demand softened, he said. Licensing rose 27 percent in the first quarter compared to a year ago, slower growth than the previous quarter of 45 percent growth.

The company, however, says it has a large number of application deals that may close in the second quarter, Roskill noted.