Due in part to the effect of a stronger U.S. dollar on current exchange rates, Oracle Corp. late Tuesday reported lower revenue and profit in its fourth fiscal quarter.
For the three months ended May 31, Oracle said, net income dropped 7% to $1.9 billion, or $0.38 per share, compared with $2 billion, or $0.39 per share in last year’s fourth quarter. Revenue fell 5% to $6.8 billion, from $7.2 billion. Wall Street analysts had expected revenue of $6.4 billion.
New license revenue from all software products declined 13% in the quarter to $2.7 billion, from $3.1 billion in the year-earlier period. Revenue from software license updates and product support grew 8% to $3 billion, from $2.8 billion, while services revenue declined 16% to $1 billion, from $1.2 billion.
New license revenue from applications software was $805 million, down 11% in constant currencies and 19% in real dollars, said Oracle Chief Financial Officer Jeff Epstein, during a conference call with financial analysts. The Americas region was particularly hard-hit, suffering a 22% decline, compared with 5% growth in the EMEA region and a drop of 4% in Asia.