Despite the impact of a lagging economy, Oracle on Monday reported net income for fiscal year 2001 rose 25 per cent to $US2.6 billion, or 44 cents per share, while revenue for the year ending May 31 increased 7 per cent to $11 billion.
The company also announced that its fourth-quarter income was $855 million, or 15 cents per share, on revenue of $3.3 billion.
Revenue from software licenses, however, came in at $3.26 billion for the quarter, slightly less than the $3.37 billion reported for the same period last year.
"While the economy slowed our sales growth, we still managed to increase profits and improve margins to record levels this past year," CFO Jeff Henley said in a statement. "That's a pretty good financial result in this difficult economic climate."
The earnings announcement comes as good news for the software developer. In March, the company failed to meet its third-quarter earnings forecast, coming in 2 cents per share below analysts' original expectations.
Three months ago, after announcing lackluster third-quarter earnings, the company announced plans to trim its workforce by 2 per cent, or about 866 employees. At the time Oracle CEO Larry Ellison warned that Oracle's financial picture would be tied closely to the economy.
Just last week, the software maker announced that it was eliminating a controversial capacity-based licensing approach following user complaints about the high price of his company's database software. The enterprise edition of the software will now be priced at $US40,000 per processor; the standard edition will cost $15,000 per CPU.
Users now paying for software based on the Universal Power Unit (UPU) performance measurement that Oracle introduced a year ago will be given a standard formula to help them retroactively convert from power units to the new licensing structure. Similar pricing changes are being made on Oracle's application server software.
The transition to per-processor licenses is scheduled to begin this week.