Oracle Corporation (ORCL) has reported a 4.53 percent rise in profit for the quarter ended Feb. 28, 2017. The company has earned $2,239 million, or $0.53 a share in the quarter, compared with $2,142 million, or $0.50 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $2,888 million, or $0.69 a share compared with $2,731 million or $0.64 a share, a year ago. Revenue during the quarter went up marginally by 2.14 percent to $9,205 million from $9,012 million in the previous year period. Gross margin for the quarter contracted 15 basis points over the previous year period to 79.45 percent. Total expenses were 67.85 percent of quarterly revenues, up from 66.41 percent for the same period last year. That has resulted in a contraction of 144 basis points in operating margin to 32.15 percent.
Operating income for the quarter was $2,959 million, compared with $3,027 million in the previous year period.
However, the adjusted operating income for the quarter stood at $3,944 million compared to $3,823 million in the prior year period. At the same time, adjusted operating margin improved 43 basis points in the quarter to 42.85 percent from 42.42 percent in the last year period.
"The hyper-growth we continue to experience in the cloud has rapidly driven both our SaaS and PaaS businesses to scale," said Oracle chief executive officer, Safra Catz. "On an annualized non-GAAP basis, our total cloud business has reached the $5 billion mark, and our SaaS and PaaS businesses grew at the astonishing rate of 85% in Q3. That growth and the resulting scale enabled our SaaS and PaaS businesses to increase non-GAAP gross margins to 65%. Our new, large, fast growing, high-margin cloud businesses are driving Oracle’s total revenue and earnings up and improving nearly every important non-GAAP business metric you care to inspect; total revenue is up, margins are up, operating income is up, net income is up, EPS is up. Take a look. Q3 was a very strong quarter."
Operating cash flow falls marginally
Oracle Corporation has generated cash of $9,660 million from operating activities during the nine month period, down 2.35 percent or $232 million, when compared with the last year period. The company has spent $15,648 million cash to meet investing activities during the nine month period as against cash outgo of $4,026 million in the last year period.
Cash flow from financing activities was $5,799 million for the nine month period as against cash outgo of $11,750 million in the last year period.
Cash and cash equivalents stood at $19,748 million as on Feb. 28, 2017, up 26.73 percent or $4,165 million from $15,583 million on Feb. 29, 2016.
Working capital increases
Oracle Corporation has recorded an increase in the working capital over the last year. It stood at $50,221 million as at Feb. 28, 2017, up 11 percent or $4,977 million from $45,244 million on Feb. 29, 2016. Current ratio was at 4.18 as on Feb. 28, 2017, down from 4.83 on Feb. 29, 2016.
Cash conversion cycle (CCC) has decreased to 26 days for the quarter from 30 days for the last year period. Days sales outstanding went down to 38 days for the quarter compared with 39 days for the same period last year.
Days inventory outstanding has decreased to 9 days for the quarter compared with 11 days for the previous year period. At the same time, days payable outstanding was almost stable at 21 days for the quarter, when compared with the previous year period.
Debt increases substantially
Oracle Corporation has witnessed an increase in total debt over the last one year. It stood at $53,967 million as on Feb. 28, 2017, up 34.56 percent or $13,861 million from $40,106 million on Feb. 29, 2016. Short-term debt stood at $3,498 million as on Feb. 28, 2017. Total debt was 43.04 percent of total assets as on Feb. 28, 2017, compared with 38.23 percent on Feb. 29, 2016. Debt to equity ratio was at 1.06 as on Feb. 28, 2017, up from 0.87 as on Feb. 29, 2016. Interest coverage ratio deteriorated to 6.58 for the quarter from 8.41 for the same period last year.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
