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By | Shaun Nichols 15th March 2016 23:09

Oracle made slightly less money last quarter, and America is to blame

Quick summary: 'Something something cloud, something something constant currency, something something we're still rich'

Oracle is blaming a strong dollar in cutting into its Q3 fiscal 2016 numbers.

The enterprise giant reported [PDF] a three per cent decline in revenues and a 14 per cent drop in net income on the year-ago quarter, but said that when adjusted for constant currency, revenues would have been up one per cent and income down just eight per cent.

  • Revenues of $9.0bn were down from $9.3bn on the 2015 quarter.
  • Net income was $2.14bn, down from $2.49bn a year ago.
  • Non-GAAP earnings per share were 64 cents, topping analyst estimates of 62 cents.
  • Hardware revenues of $1.13bn were down 13 per cent on the year-ago quarter's $1.3bn.
  • Software revenues were $7.08bn, a one per cent drop from $7.17bn in Q3 2015.
  • Service revenues hit $793m, down eight per cent from $858m last year.

Cloud SaaS and PaaS revenues were, once again, a point of pride – House Ellison recorded a 58 per cent increase on the year-ago quarter, as SaaS and PaaS brought a combined total of $583m in revenue.

Larry Ellison took the occasion to needle his rival and (alleged) close friend Marc Benioff of

"We are growing much faster than We also have many more SaaS products than In some of our most important SaaS markets, such as ERP, HCM, Supply Chain and Manufacturing, does not participate at all," the Oracle founder and CTO said.

"By successfully competing in all of these markets, Oracle has the ability to sustain its high growth over a long period of time."

Other areas did not fare so well. New software license revenues were down 11 per cent, while hardware product revenues declined by 10 per cent on the year-ago quarter and hardware support was down five per cent.

Not surprisingly, Oracle has been making an ongoing effort to wean itself away from the declining hardware and software revenues in recent years and towards the cloud markets, where it sees a much higher potential for growth.

Oracle said that this quarter, on-premise software revenues continued to be the bulk of its income, accounting for 70 per cent of revenues. Hardware revenues accounted for 13 per cent, and cloud revenues were eight per cent. ®

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