Oracle, a US-based database software provider, on Tuesday reported its third quarter results, which was impacted by the robust US dollar. Revenues from cloud business increased 40% to $735 million during the third quarter that ended February 29, 2016. Cloud revenues jumped 44% on a constant currency basis.
The maker of database software posted a net income of $2.14 billion, down 14% from $2.5 billion in the previous year period. Quarterly net income, excluding the impact of US dollar, dropped 8%. Earnings per share declined to $0.50 from $0.56 in the same period in 2015. On a non-GAAP basis, quarterly net income decreased to $2.7 billion, or $0.64 per share from $3.1 billion, or $0.68 per share in the year-ago period.
Oracle's operating income for the third quarter amounted to $3.03 billion, a decrease of 11% from $3.4 billion in the previous year period. On a constant currency basis, operating income fell 5% over the past year period. Non-GAAP operating income totaled $3.8 billion, down from $4.2 billion in the prior year period.
Net revenue was down 3% at $9.01 billion, compared to $9.33 billion in the year-ago period. Excluding the impact of US dollar, net revenue increased 1% over the previous year period. Revenues from hardware business fell 13% to $1.1 billion from $1.3 billion in the prior year period. Net services revenues dropped to $793 million from $858 million in the previous year period.
Bloomberg quoted Safra Catz, co-CEO, who said that fourth-quarter revenue is expected to be between 2% lower and 1% higher from the previous year. While, adjusted earnings per share is anticipated between 82 cents and 85 cents.
On an average, analysts polled by Thomson Reuters expected earnings of 62 cents per share on revenues of $9.12 billion. Shares of Oracle increased 3.3% to $40.18 during the after-hours trading session since the quarterly adjusted earnings per share outstripped analysts' view. In addition, the company increased its share buyback program by $10 billion, as reported by MarketWatch.
For the nine-month period that ended February 29, 2016, the company reported net income of $6.1 billion, or $1.41 per share, down from $7.2 billion, or $1.59 per share in the prior year period. Operating income declined 13% to $8.6 billion from $9.9 billion in the same period in 2015. Excluding the US currency impact operating income dropped 4%.
Non-GAAP net income decreased to $7.8 billion, or $1.81 per share from $8.99 billion, or $1.99 per share in the earlier year period. While, non-GAAP operating income amounted to $11.02 billion during the nine-month period.
Total revenues fell 4% to $26.4 billion from $27.5 billion in the year-ago period, while it increased 2% on a constant currency basis. Revenues from cloud business climbed 31% to $1.99 billion from $1.52 billion in the previous year period.
Oracle posted a weak profit as growth in cloud business was offset by the impact of the robust dollar. Moreover, the company's cloud business is facing serious competition from Amazon and Google.
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