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Oracle Earnings Up 78%

As a fillip, it increased its dividend 20% to six cents a share from five cents effective May 4

Oracle closed its third fiscal quarter ended in February with revenues up 37% to $8.76 billion, earning $2.1 billion, up 78% while non-GAAP income was up 42% to $2.8 billion or 54 cents against Wall Street projections of 50 cents.

It did, in a word, better than expected than the $8.67 billion Wall Street had down and said it expects no material fallout from the Japan crisis but did not explore the issue further. Japan, where Oracle experienced no damages and all of its people are accounted for, usually contributes 5% of Oracle's annual revenue. As a fillip, it increased its dividend 20% to six cents a share from five cents effective May 4.

Unfortunately CEO Larry Ellison wasn't there to add his inimitable spin to the numbers. He's doing jury duty, it said, acknowledging the irony in view of its recent case against SAP where Larry was a star witness.

New software licenses were good for $2.21 versus projections of $2 billion, up a fat 29% against internal expectations of 10%-20%. Software updates and support revenues were up 13% to $3.7 billion and it said it sold a billion dollars worth of hardware at a 55% margin against expectations of $1.16 billion. It now fully expects to exceed the $1.5 billion profit goal it set for the overall Sun business for this year, confounding the naysayers.

However, obviously the numbers don't necessarily mean Sun still isn't losing market share like HP said Wednesday.

All geographies reported revenue growth of 30% or higher. The sequential revenue growth for Exadata and Exalogic was up over 50%. Oracle is now expecting higher growth rate on these products this quarter.

Oracle bragged on its deal with salesforce.com, which is using Oracle's database and middleware for its cloud services. It wants to be thought of as "the technology that powers the cloud."

Catz predicted that Oracle would see a 4%-14% increase in revenues this quarter in constant currency and realize 69 cents-73 cents a share non-GAAP against expectations of 66 cents. She figures new software licenses could be up 9%-19% year-over-year and hardware sales could be up 6%-12%.

After-hours Oracle was up 1.87% to $32.74, a buck away from its 52-week high.

It said it's been hiring and means to continue to do so.

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

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