Oracle Corp reported quarterly profit above Wall Street expectations as the world's No. 2 business software maker posted an unexpected increase in sales of its computer programs.
The earnings report lifted shares in Oracle by a dollar, or 4.3%, to $23.88.
The news stoked hopes that technology spending is on the mend after it collapsed a year ago in the recession. Oracle, which reports earnings a month ahead of its peers, is seen as a bellwether for the industry because of its size.
The company posted second-quarter profit, excluding items, of 39 cents per share, above the average Wall Street forecast of 36 cents, according to Thomson Reuters IBES.
Sales of new software licenses during the second quarter ended Nov. 30 rose 2% from a year earlier. Three months ago, the company forecast that they would be flat to down 10%.
Investors focus on new software sales because they are a forward indicator of Oracle's profit. Customers generally sign maintenance contracts when they buy software, which locks in predictable, recurring revenue.
Oracle's net income rose 12.5% to $1.5 billion, or 29 cents per share, from $1.3 billion, or 25 cents per share, a year earlier.
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