- Oracle’s (ORCL, $64.05) quarterly results were a mixed bag, with revenues meeting investor expectations but profits falling short, largely due to the strength of the US dollar. Revenue increased 18% to $11.45B in the quarter ending August from the previous year.
- The difference between GAAP and non-GAAP net income was $1.5B. Non-GAAP Q1 earnings per share were $1.03 compared to GAAP Q1 earnings per share of $0.56. Analysts predicted a revenue of $11.2 billion and adjusted profits of $1.07 a share. The software giant said both adjusted and GAAP earnings were reduced by 8 cents a share due to foreign-exchange rates.
- The company is making steady progress in moving customers to cloud-based versions of its database and application software. Revenue for Oracle's cloud services and license-support division came in at $3.6B, up 45%. Oracle's cloud infrastructure quarterly sales increased by 52% to $900m and now account for more than 30% of overall revenue, according to the firm.
Why it matters
The recent acquisition of software company, Cerner, and the availability of its database software via Microsoft's (MSFT, $266.65) Azure public cloud, which is powered by Oracle's cloud infrastructure, are two factors that have contributed to Oracle's profits. Meanwhile, Oracle said that if not for the US dollar's appreciation in value against other currencies, it would have experienced an increase in adjusted earnings per share of 8 cents.
