Oracle ( ORCL) beat Wall Street estimates with a solid fiscal third-quarter performance and says it will start paying a dividend.

The Redwood Shores, Calif., enterprise software shop posted an adjusted profit, excluding one-time items, of 35 cents a share, up from the 30 cents in the year-ago period and well above the 32 cents analysts were looking for, according to First Call.

Sales for the quarter ended last month was $5.45 billion, up from the $5.37 billion last year, and in line with analysts expectations.

Oracle also bowed to long-running shareholder requests that the company give a portion of its cash back to investors, and says it will start paying a 20-cent annual dividend.

The news sent Oracle shares up $1.06, or 7%, to $16.80 in after-hours trading Wednesday.

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