Oracle results lower on strong dollar, sees growth in cloud

News Broadband Global 17 SEP 2015
Oracle results lower on strong dollar, sees growth in cloud
Oracle reported revenues for its fiscal first quarter to August down 2 percent year-on-year to USD 8.4 billion. Excluding the impact of exchange rates, notably the stronger dollar, revenues rose 7 percent over the same period. The company continued to grow its cloud business, while legacy software and hardware revenues were lower. Cloud software as a service and platform as a service revenues rose 34 percent to USD 451 million, and cloud infrastructure as a service increased 16 percent to USD 160 million, while on-premise software revenues fell 4 percent to USD 5.8 billion, and hardware revenues were down 3 percent to USD 1.1 billion. 

Operating profit fell 10 percent to USD 2.7 billion, and the margin dropped to 31 percent from 34 a year ago. Net profit declined 20 percent to USD 1.7 billion, and adjusted EPS dropped 14 percent to USD 0.53. Without the impact of the stronger US dollar, Oracle said EPS would have been 6 cents higher. Operating cash flow on a trailing twelve-month basis was USD 13.5 billion. Short-term deferred revenues increased 10 percent at constant currency rates to USD 9.1 billion. 

Oracle said it targets continued growth in SaaS and PaaS cloud subscription contracts, which almost tripled in the quarter. As the cloud business gains scale, margins here should increase from around 40 percent in the past quarter to 60 percent by Q4 and 80 percent within two years, helping drive bottom-line growth. Oracle said it's on track to book between USD 1.5 and 2.0 billion of new SaaS and PaaS business this fiscal year. 

Categories:

Fixed,  IT

Companies:

Oracle

Regions:

Global

Tags:

Enterprise equipment, Financial figures, IT - applications, Network equipment

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