Oracle posted a modest revenue increase in its second quarter with license updates and product support driving the gains.

Oracle churned out $2.5 billion in revenue for the period - an eight percent rise over the same quarter last year. The company showed a more dramatic increase in net income, which rose 15 percent year-on-year to $617 million. Earnings per share were up two cents from $0.10 last year to $0.12 in this most recent quarter.

"We are extremely pleased with the strong performance we saw this quarter. Solid execution in the field, a strengthening competitive position, and an improving economy contributed to results that were above expectations," said Oracle CFO Jeff Henley.

New software sales jumped 13 percent to account for $849 million in revenue. But the software license updates and product support paved the way for Oracle, rising 17 percent year-on-year to $1.1 billion. Operating margin was 37 percent - a 300 basis point increase over last year.

As has become a tradition of late, Oracle Chief Larry Ellison used an announcement to take a shot at acquisition target PeopleSoft.

"Our applications growth of 27 percent exceeded the growth rates of many of our competitors, including SAP, PeopleSoft, Lawson, and Siebel, in their most recently reported quarters." Ellison said. "For example, new license sales at the combined PeopleSoft and JD Edwards company declined 18 percent as compared to their results when they were operating as separate companies. But the very fastest growing part of our applications business is outsourcing, which increased 82 percent in the quarter."

Almost makes you wonder why Oracle would want PeopleSoft. ®