US software maker Oracle Corporation last night reported stronger than expected quarterly profits.
The firm released the results three days ahead of schedule after news of the pending departure of a senior executive fueled concerns that business was stagnating.
The departure of senior sales personnel, particularly at the end of a quarter can often signal weaker sales.
But the exit of the executive in question, Keith Block, appeared linked to criticisms of Oracle President Mark Hurd and its Sun Microsystems division.
"The things he said about his boss and the things he said about the company are very damaging. At some point Oracle has to deal with that," analysts said.
Block, executive vice president for Oracle's sales and consulting groups in North America and a 26-year Oracle veteran, was leaving the company, a person familiar with the matter said.
Oracle, the world's number three software maker, did not officially confirm his departure but it became apparent in a call with analysts that other executives would be assuming his responsibilities. Block could not be reached for comment.
Oracle, whose chief rivals are Hewlett-Packard, Microsoft and IBM, said fourth-quarter results were helped by a 7% jump in new software license revenue to $4 billion.
It also said new software sales growth in the current quarter should be flat to 10% higher, despite fears of further weakening in technology spending as the euro zone crisis deepens and US job creation stagnates.
Oracle's ailing hardware business inherited through its acquisition of Sun Microsystems, remained a drag with hardware product sales diving 16% to $977m.
Although chief executive Larry Ellison has said he expects hardware revenue and margins to grow during the current financial year, Oracle forecast first-quarter hardware sales will decline between 7-17% from a year earlier.
Comments by Block about Oracle's hardware had proved particularly embarrassing for Ellison. According to a transcript of comments made in July 2011 to a colleague in human resources via Oracle's instant messaging service, Block said: "Nobody talks about Sun. Even the Sun customers. It's dead dead dead."
The comments became public in the latest quarter in disclosures filed during the discovery phase of a lawsuit with bitter rival HP.
