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Oracle software sales surge, shares rise

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CIOL Bureau
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BOSTON: Oracle Corp's new software sales surged and beat its own forecasts, and the company reported profit ahead of Wall Street estimates, signaling that businesses have a big appetite for investing in technology.

Shares in the company run by Silicon Valley billionaire Larry Ellison rose more than 3 per cent.

The world's No. 3 software maker said sales of new software climbed 21 per cent from a year earlier to $2 billion during its fiscal second quarter ended Nov. 30.

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Three months ago, the company forecast that those sales would rise between 6 and 16 per cent.

Investors pay close attention to new software sales because they generate high-margin, long-term maintenance contracts and are a good gauge of the company's future profits.

Oracle reported second-quarter profit, excluding items, of 51 cents per share, beating the average analyst forecast of 46 cents, according to Thomson Reuters I/B/E/S.

Oracle's shares rose 3.4 per cent to $31.30 after closing at $30.27 on Nasdaq.

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