Oracle’s Total Revenue fell by 6.3% to $8.99 Billion

Oracle’s Total Revenue fell by 6.3% to $8.99 Billion

Oracle Corp., the American computer hardware company, said that its cloud business has gained momentum in its latest quarter, but strong dollar badly affected its profit.

According to data compiled by Bloomberg, revenue of the company fell around 6.3% to $8.99 billion from a year earlier, as compared with analysts’ estimate of $9.06 billion. This is the 10th quarter in the past 12 when the company has failed to meet analysts’ expectations.

The company has been pressured as customers has shifted from the conventional model of buying software installed on corporate computer systems to products delivered over the Internet.

Executive Chairman Larry Ellison said in a statement that the shift to cloud business is in its early stages, but he strongly hopes that the company will make gains with new products against its rivals like Workday Inc. and Microsoft Corp.

John Rizzuto, an analyst at Suntrust Robinson Humphrey Inc., said, “You kind of go back and forth through this gray area until we make that full jump to what’s next -- and that’s going to be the cloud”.

Oracle reported sales in the cloud-based businesses were $649 million in the quarter; this contributed around 7% of Oracle’s total revenue, as compared with 5% of a year earlier.

There are expectations that the sale of key cloud products is expected to increase to about 60% in the fiscal fourth quarter, an increase from 38% in the past quarter.