Bulletin: Oracle Corp.'s Third-Quarter Results, In Line With Expectations, Do Not Affect Ratings

SAN FRANCISCO (Standard&Poor's) March 17, 2015--Standard&Poor's Ratings Services said today that Oracle Corp.'s (A+/Stable/A-1+) third-quarter results were mostly in line with our expectations and that the ratings would not be affected. Quarterly revenue was flat year over year but up 6% as measured in constant currency. Most significantly, new software license sales were down 7% year over year but cloud offerings (software-as-a-service, platform-as-a-service, and infrastructure-as-a-service) continued their strong growth, rising 30% after 45% growth the prior quarter. We note, however, that the total revenue from cloud offerings still accounted for less than 6% of total revenue during the quarter. Adjusted EBITDA margin, though down modestly, remains strong at near 49%, while free operating cash flow reached

...SAN FRANCISCO (Standard & Poor's) March 17, 2015--Standard & Poor's Ratings Services said today that Oracle Corp.'s (A+/Stable/A-1+) third-quarter results were mostly in line with our expectations and that the ratings would not be affected. Quarterly revenue was flat year over year but up 6% as measured in constant currency. Most significantly, new software license sales were down 7% year over year but cloud offerings (software-as-a-service, platform-as-a-service, and infrastructure-as-a-service) continued their strong growth, rising 30% after 45% growth the prior quarter. We note, however, that the total revenue from cloud offerings still accounted for less than 6% of total revenue during the quarter. Adjusted EBITDA margin, though down modestly, remains strong at near 49%, while free operating cash flow reached nearly $14 billion on a latest-12-month basis. Cash and investments totaled nearly $44 billion. Oracle's share repurchases and dividends totaled $2.5 billion during the quarter...

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