Oracle defies economic gloom with a strong quarter

Oracle has managed to defy the economic gloom

Business software maker Oracle posted a decent set of financial results for its most recent quarter, after a series of cost-cutting measures enabled it to withstand the impact of the worsening economy.

Oracle reported revenues of $5.6bn (£3.7bn) for its quarter ending 30 November 2008, up six per cent on the year-ago quarter. Profits dipped slightly, with net income at $1.3bn (£867m) down one per cent year on year.

The figures look reasonably strong, given the ongoing recession in the US and Europe. "We feel extremely good about our results," said Oracle president Safra Catz in a conference call.

Currency fluctuations did more to dampen performance than the weakening economy, according to Jeff Epstein, Oracle's chief financial officer.

New software licence revenues, an important indication of future performance for software makers, was down three per cent to $1.6bn, again affected by the strengthening US dollar.

On a constant currency basis, new software licence revenue at Oracle would have risen five per cent, said Epstein.

Oracle made substantial reductions in its spending on research and development, travel and general administration expenditure during the quarter.