Last update: 5:03 p.m. EDT March 18, 2009

SAN FRANCISCO (MarketWatch) -- Oracle Corp. on Wednesday reported a reduced profit for its third fiscal quarter thanks mostly to the impact of currency exchange rates, though the final results still topped Wall Street's estimates despite a sharp economic slump.

The corporate software giant also declared its first-ever quarterly dividend of 5 cents a share. The stock rose more than 5% in after-hours trading.

Redwood Shores, Calif.-based Oracle (ORCL

Oracle Corporation

ORCL) said net income for its fiscal third-quarter ended in February fell slightly to $1.33 billion, or 26 cents a share, from $1.34 billion, or 26 cents a share, in the same period a year earlier. Revenue rose 2% to $5.45 billion.

Excluding special items, however, Oracle said earnings for the quarter would have been 35 cents a share. Analysts on average estimated Oracle would post earnings excluding special items of 32 cents a share, on $5.4 billion in revenue, according to Thomson Reuters.

Oracle had previously forecast earnings excluding special items of between 31 and 33 cents a share.

"We are running our business at record operating margins," Oracle President Safra Catz said in a prepared statement.

Shares of Oracle rose more than 6% to $16.75 in after-hours trading, following the earnings announcement.

"It surprised me in almost every way," JMP Securities analyst Pat Walravens said of Oracle's earnings report. Walravens said that it "doesn't square with what you hear from people in the industry... It's a tough market out there for technology right now."

Walravens noted, however, that Oracle's growth in revenue from the support of existing software has shown a steady decline of late, decelerating steadily over the past three quarters.

Oracle said a strengthening U.S. dollar cut into international sales in the quarter, adding that the currency impact reduced its earnings including items by 5 cents a share.

Sales of new software licenses, a key metric for Oracle as it reflects new business rather than maintenance revenue from existing customers, declined 6% to $1.5 billion, the company said.

A relatively weak new license sale figure had been anticipated by Wall Street analysts following the company, thanks in large part to the worsening economy.

Revenue from support for existing software, seen as a reliable cushion for Oracle amid the down economy, rose 11% to $2.9 billion.

Oracle said its 5-cents-a-share dividend will be paid to shareholders of record as of April 8, with a payment due date of May 8.

"We are committed to delivering value to our stockholders through technology innovation, strategic acquisitions, stock repurchases, and now through a dividend," Catz said.

John Letzing is a MarketWatch reporter based in San Francisco.