Oracle boss Larry Ellison led the takeover of rival Peoplesoft

Also benefiting from strong sales of its databases and applications software, the firm saw net profits rise 3% to $1.02bn (�566m).

Total revenue for the quarter rose to $3.9bn from �3bn last year.

Oracle bought Peoplesoft for $10bn last December, after a takeover battle which lasted for 18 months.

Peoplesoft's board originally opposed the acquisition, leading to a drawn out takeover saga.

"I think investors will like these numbers," said analyst Robert Stimson of WR Hambrecht & Co.

Oracle's co-president Safra Catz said the company was "very optimistic" about its forthcoming fiscal year.