Good news from Oracle is better news for the U.S. economy

03/26/2010 12:25 pm EST

Focus: STOCKS

Jim Jubak

Founder and Editor, JubakPicks.com

There wasn’t anything wrong with the earnings results that Oracle (ORCL) announced yesterday. For the company’s fiscal third quarter, which ended in February, revenue climbed to $6.5 billion, up 18% from the third quarter of fiscal 2009. (Excluding currency effects revenue was up 12%.) Earnings climbed to 36 cents a share, up 6% year-to-year. Pretty good given the losses posted by the Sun Microsystems business that Oracle acquired in January.

But still the big excitement was the good news about the U.S. economy in the company’s results.

Sales of software applications in Oracle’s Americas market unit climbed 26% year over year. License revenue, an indicator of new demand, grew 11% for the company’s database products and 21% for its applications unit. (Oracle’s other main source of revenue comes from maintenance contracts on already purchased software.)

The general macro economy continues to improve, Oracle management said, with enterprise (that is, corporate) customers showing an increasing willingness to spend.

That’s good news for more companies than just Oracle.

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