Oracle, the world's largest maker of database software posted a 35 percent rise in net income for second quarter on Wednesday, bolstered by stronger demand on new software licenses.
The company reported net income of $1.3 billion, or 25 cents a share, for the quarter ended Nov. 30, compared with $967 million, or 18 cents a share, the same period last year.
Sales of new licenses rose 38 percent, compared with company's September forecast of 15 percent to 25 percent growth. This product category highly weighted by Oracle as future revenues are generated from the new customers for maintenance and software updates latter.
Revenue totaled $5.31 billion, a 28 percent rise from $4.16 billion for the same period last year. Analysts, on average, had projected revenue of $5.04 billion.
The Redwood Shores-based company has far exceeded analysts' expectation for worries on slowing technology spending during this quarter as the U.S economy sagging.
We exceeded our guidance and our best case forecast with strong revenue growth across all product lines and geographies, said President and Chief Financial Officer Safra Catz in a press release.
Oracle shares rose to $21.50 in after-hours trading, up 3.5% from their Nasdaq Stock Market close of $20.76.