Oracle accelerates cloud revenue growth

Wednesday 16 March 2016 | 08:50 CET | News
Oracle announced revenues down 3 percent year-on-year in its fiscal third quarter to February to USD 9.0 billion. The stronger US dollar depressed sales; excluding currency effects, revenue was up 1 percent. 

Software Revenues fell 1 percent to USD 7.1 billion, SaaS and PaaS revenues jumped 57 percent to USD 583 million, and IaaS revenues declined 2 percent to USD 152 million. Total cloud revenues rose 40 percent to USD 735 million, while on-premise software revenues were down 4 percent to USD 6.3 billion. Hardware revenues fell 13 percent to USD 1.1 billion, and service revenue dropped 7 percent to USD 793 million. 

After a 1 percent rise in operating costs, Oracle's operating profit fell 11 percent year-on-year to USD 3.0 billion. Net profit was down 14 percent to USD 2.1 billion or USD 0.50 per share after a rise in interest expenses. 

The company said it saw an acceleration in cloud revenue growth in the quarter, helping boost gross margins. Further growth in this area is expected to support growth in EPS and cash flow in the coming quarters. The company also announced the board authorised the repurchase of up to USD 10 billion in shares and said it would pay a dividend of USD 0.15 per share. 

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