Oracle Gains on Report Showing Buoyant Business Software

New software-license sales, a predictor of revenue growth,gained 7 percent to $2.37 billion in the fiscal third quarter,Redwood City, California-based Oracle said yesterday. Analystshad projected 3 percent growth, according to Raimo Lenschow, ananalyst at Barclays Capital. Profit excluding certain costs roseto 62 cents a share, topping 56 cents, the average analystestimate, data compiled by Bloomberg show.

"They've got some work to do proving themselves to themarket with this hardware business," Josh Olson, an analyst atEdward Jones & Co. in Des Peres, Missouri, said in an interview.

Oracle's database software is used by companies to storeinformation and process customer transactions. Oracle is alsothe second-largest maker of business applications used to managefinancials, operations and human resources, afterwards SAP AG.

Sales of database and middleware licenses increased 9percent to $1.72 billion, during license sales of businessapplications rose 3 percent to $658 million.

Oracle has as well been making acquisitions to broaden itsofferings in cloud computing software delivered over the Web. Itagreed last month to buy Taleo Corp., a maker of online humanresources software, for $1.9 billion, its second Web softwareacquisition in less than four months.

The company's database

Ellison said the company's database and Java software, aswell as human resources, financial management and customermanagement applications, will be available in cloud-computingversions in the fourth quarter.

"I don't believe SAP is equipped to compete with us in thedatabase business," Ellison said. "This is arguably our corecompetence."