Oracle beats Wall Street estimates

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Oracle Corp. (ORCL) seems to be weathering the decline in corporate technology spending just fine, even as it struggles to win new business.

Net income was $1.33 billion, or 26 cents per share, little changed from the $1.34 billion, or 26 cents per share. Revenue rose two percent to $5.45 billion. Excluding certain one-time items, earnings were 35 cents per share. Analysts had expected earnings of 35 cents on revenue of $5.45 billion, according to Thomson Reuters. The company is so confident that it declared a five cent quarterly dividend, its first ever.

"But for the strengthening of the US dollar leading to unfavorable currency exchange rates, our non-GAAP earnings per share would have increased 29% in Q3," said Oracle CEO Larry Ellison in a press release . "This is a tremendous achievement in the face of the serious slowdown in the world economy."

Shares of the Redwood Shores, Calif.-based company are down more than 21 percent this year as investors worried that the company would be hurt by the economic slowdown. Those fears appear to be unjustified for now.
Software revenues rose five percent to $4.4 billion and software license updates and product support revenues were up 11 percent to $2.9 billion. New software license revenues, a key metric for software companies, fell six percent to $1.5 billion.

Wall Street apparently liked what it saw, pushing shares of Oracle up seven percent in after-hours trading.
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