SAN FRANCISCO - Oracle Corp's profit and revenue from new software licenses dipped in the latest quarter, but the business software maker's results came in ahead of Wall Street's tepid forecasts. And in a rare sign of confidence these days, the company declared its first dividend.

Oracle's fiscal third-quarter results, reported on Wednesday after the market closed, demonstrated that the company was able to sustain a better-than-expected pace of contract signings even as companies pull back on technology spending.

However, a stronger dollar hurt results, since deals done in other currencies weren't worth as much in dollars.

Shares of Redwood Shores, California-based Oracle jumped $1.09, or 6.9 per cent, to US$16.92 in after-hours trading. Shares had gained 43 cents, or 2.8 per cent, to close at US$15.83 during the regular trading session before Oracle reported its results.

In the latest period, which covered December through February, Oracle said it earned US$1.33 billion (S$2 billion), or 26 cents per share, versus US$1.34 billion, also 26 cents per share, in the year-ago period.

Stripping out one-time charges, profit was 35 cents per share, 3 cents better than the average estimate from analysts polled by Thomson Reuters on that same basis.

Total revenue was US$5.45 billion, a 2 per cent increase over last year, though Oracle said sales would have jumped 11 per cent without the currency fluctuations. Analysts predicted US$5.42 billion in sales.

A closely watched number for Oracle is its sale of new software licenses. That figure fell 6 per cent to US$1.5 billion, which was within the company's guidance. Some analysts were projecting a far worse decline.

Oracle's main business is selling database software and so-called 'middleware,' which allows business computing applications to talk to each other - both areas that are under pressure because of the economic malaise.

Oracle's cash dividend will pay 5 cents per share to stockholders of record as of April 8. -- AP