The battle for Peoplesoft has been long and bitter

Net income in the three months ending 30 September was $24m (�13m), compared with a loss of $7.3m a year earlier.

Peoplesoft has been fighting Oracle's advances for 15 months, though there has been speculation recently that the firm may now be willing to negotiate.

Oracle restated its $21-a-share offer for Peoplesoft on Thursday.

Changing target

Speculation about Peoplesoft's change of heart has intensified after the firm sacked chief executive Craig Conway, a main opponent to Oracle's approach.

New CEO and co-founder Dave Duffield said on Friday he was confident about the company's outlook and he had no plans to sell the company.

Chief financial officer Kevin Parker told Reuters on Friday that no board members or executives have held talks with Oracle.

Peoplesoft had earlier claimed that the battle with Oracle was denting demand for its products, with many consumers unwilling to buy software they fear will not be updated or supported.

The firm said it was still facing a "challenging pricing environment".

Revenues, however, in the third quarter rose 12% to $699m, topping market expectations.

The company forecasts that revenue and earnings growth will continue in the current quarter.

"The earnings report looks pretty good overall," said Tad Piper, an analyst at Piper Jaffray.