The CFO of


(ORCL) - Get Report

said the software maker would probably reconsider its dividend policy if taxes on them are repealed.

The statements came at a technology conference in New York.

"It's quite likely we will have to reconsider our policy," Jeff Henley said in response to a question at a Morgan Stanley investor conference, according to wire reports. Dropping the tax "would have a significant impact on our thought process."

Oracle has about $5 billion in cash and equivalents but has never paid a dividend, instead returning capital to investors via stock buybacks. It and other cash-rich technology companies have periodically been called on to establish regular dividends, but before President Bush's plan to repeal so-called "double taxation" of dividends, the proposals were generally resisted.

Other tech companies sitting on large sums of cash include


(MSFT) - Get Report



(INTC) - Get Report



(CSCO) - Get Report


Oracle's shares traded up 32 cents, or 2.7%, to $12.28 around midday.

Henley also repeated his prediction that information technology spending would rise modestly this year.

"We have bottomed out and are starting to turn the corner," Henley said.