Oracle Q1 performance dazzles investors

Database firm reports soaring profit and revenue

What recession? Oracle is confident of future growth despite a tough economic climate

Oracle has brought some optimism to an otherwise gloomy financial market by reporting rises in profit and revenue for its first quarter.

Profit for the period ending 31 August rose by 28 per cent on the prior year, while net income rose to $1.08bn (£600m) from $840m (£466m) in 2007.

Software revenue rose 20 per cent to $4.2bn (£2.32bn) and revenue originating from new software licences jumped 14 per cent, corresponding to $1.2bn (£665m) of Oracle's total revenue.

"More and more Oracle database customers are buying our integrated suite of standards-based Fusion middleware to modernise their computing environment," said Oracle president Charles Phillips in a statement.

"The Oracle product line of database, middleware and applications is by far the most extensive in the enterprise software industry. That enables us to offer a broader range of solutions than any other software vendor."

Oracle's chief financial officer, Safra Catz, told analysts during an earnings call that the company's exposure to the current banking sector turmoil is "in the low single digits".

"We have reviewed our exposure to financial institutions which are reported to be facing significant asset impairment and liquidity risk and have concluded that our exposure is de minimis and immaterial," he said.