Oracle released second quarter earnings net profit of $798 million

Oracle released the 2006 fiscal second quarter earnings today. The report shows that due to the acquisition of related expenses, Oracle's second quarter net profit fell slightly.

In the quarter ended November 30th, Oracle's net profit of $798 million, earnings per share of 15 cents. This performance fell slightly compared with the same period last year, the second quarter of fiscal year 2005, Oracle's net profit of $815 million, earnings per share of 16 cents. Oracle's second quarter revenue of $3 billion 290 million, an increase of $2 billion 760 million over the same period last year, $19%. Excluding one-time items, Oracle's second quarter earnings per share were $19, an increase of $16, compared with the same period last year, with Wall Street analysts expected earnings per share of 19 cents.

In accordance with U.S. GAAP, Oracle's second quarter total revenues of $software business, an increase of 18%. Among them, the database and middleware new license revenue of $785 million, an increase of 5%; new application software license revenue of $266 million, an increase of 24%; service revenue of $675 million, an increase of 26%. Oracle president and chief financial officer saffa Katz (Safra Catz) said: "although the exchange rate changes to our results of a negative impact of nearly 5%, revenue and earnings we still steady growth."

Over the past two years, Oracle has invested $19 billion to acquire competitors in order to continue to maintain market leadership, while aggressively into the business software market for large enterprises. So far, Oracle has completed its $11 billion 100 million acquisition of PeopleSoft transactions, as well as the acquisition of some other smaller. In addition, Oracle plans to purchase $5 billion 850 million in Siebel systems, which is expected to be completed by early 2006.

This year, Oracle's shares fell nearly 7% on the Nasdaq, while the main rival SAP's share price rose nearly 5% on the New York stock exchange. Excluding special items, Oracle's current stock price is expected to be 2006 times earnings per share in fiscal year, and SAP is 27 times. On Thursday, Oracle shares rose 2 cents to settle at $12.83 on nasdaq. In the subsequent after hours trading, Oracle shares fell 44 cents to close at $12.39, down 3.4%.