Oracle co-CEO Safra Catz says that near-term sales are being impacted by a faster-than-expected transition to cloud subscriptions from up-front licenses.
Oracle says fiscal 2015 Q3 total revenues were unchanged at $9.3bn. The strengthening of the dollar had a significant impact on results in the quarter. Without the strengthening of the dollar, revenues would have been up 6% as measured in constant currency. Software and Cloud Revenues were up 1% to $7.2bn, and up 7% in constant currency. Cloud software-as-a-service (SaaS) and platform-as-a-service (PaaS) grew 30% to $372m, and grew 34% in constant currency. Hardware Systems Revenues were down 2% to $1.3bn, but were up 5% in constant currency.
Though hardware system product revenue fell 3% Y/Y thanks to ongoing declines in SPARC/UNIX server sales, engineered systems revenue rose by double digit; Oracle claims it's taking high-end server share from IBM and HP.
With a strong dollar having a big impact on near-term sales, Oracle has once provided all of its guidance in constant currency. In constant currency, the enterprise software giant expects 1%-6% Y/Y FQ4 revenue growth and EPS of $0.90-$0.96; consensus (in actual dollars) is for 0.9% revenue growth and EPS of $0.94.
Software/cloud revenue is expected to grow 1%-6% in CC; hardware systems guidance is once more at -2% to +8%. SaaS/PaaS growth is expected to be at 26%-30%, and IaaS growth at 29%-33%.Co-CEO Safra Catz asserts near-term sales are being impacted by a faster-than-expected transition to cloud subscriptions from up-front licenses. Though hardware system product revenue fell 3% Y/Y thanks to ongoing declines in SPARC/UNIX server sales, engineered systems revenue rose by double digit; Oracle claims it's taking high-end server share from IBM and HP.