After a disappointing first quarter, Oracle turned in better-than-expected earnings for its second quarter ended November 30. It earned $617 million, or 12 cents a share, on revenues of $2.5 billion.

Earnings per share were a penny higher than the Street figured.

In Q2 last year, Oracle earned $535 million, or 10 cents a share, on revenues of $2.31 billion.

New software licenses were up 13% to $849 million while software license updates and product support revenues grew 17% to $1.1 billion.

Oracle said solid execution, an improving economy and its strengthening competitive position boosted results.

The company claimed all major software product categories and geographic regions grew in the quarter.

Oracle CEO Larry Ellison couldn't resist taking a potshot at his rivals and boasted that the 27% growth of Oracle applications exceeded that of SAP, PeopleSoft, Lawson and Siebel.

This quarter, Oracle expects earnings of 11 cents-12 cents on revenues up 7%-10%. It projects new software license sales will rise 5%-15%.