Operating Income was $3.0 billion and Operating Margin was 34%. Non-GAAP Operating Income was $3.8 billion and non-GAAP Operating Margin was 42%. Net Income was $2.0 billion while non-GAAP Net Income was $2.6 billion. Earnings Per Share was $0.48, while non-GAAP Earnings Per Share was $0.61. Without the impact of the U.S. dollar strengthening compared to foreign currencies and an unforeseen Egyptian currency exchange loss, Oracle's reported GAAP and non-GAAP Earnings Per Share would have been 2 cents higher.
Short-term deferred revenues were $7.4 billion, up 6% in U.S. dollars and up 8% in constant currency compared with a year ago. Operating cash flow on a trailing twelve-month basis was $14.2 billion, up 9% from the prior year.
"For four consecutive quarters our Cloud SaaS & PaaS revenue growth rate has increased", stated Oracle CEO, Safra Catz. "As we get bigger in the Cloud, we grow faster in the cloud. Our non-GAAP constant currency SaaS and PaaS growth rate is now up to 89%. This growth rate acceleration has driven our quarterly Cloud revenue over the $1 billion mark. When salesforce.com crossed the billion dollar milestone their SaaS and PaaS subscription growth rate had slowed down to 36%, even after you include all their acquisitions."
"Oracle has now passed salesforce.com and become number one in SaaS Cloud applications sales to customers with over 1,000 employees according to the latest IDC report", stated Oracle CEO, Mark Hurd. "In other words, this year we are selling more enterprise SaaS than any Cloud services provider in the world. We expect to book over $2 billion in new annually recurring Cloud business this year alone. And, with the acquisition of NetSuite, we plan on being the number 1 Cloud applications service provider for companies with less than 1,000 employees as well."
"Our Database as a Service Cloud revenue was $100 million for the quarter, driving growth in our overall database business", stated Larry Ellison, Oracle Chairman and CTO. "We expect our Database as a Service and IaaS businesses will grow even faster than our skyrocketing SaaS business. A lot of people were taken by surprise when IDC ranked Oracle number 1 in Enterprise SaaS, surpassing salesforce.com and overcoming their fifteen year head-start. Stay tuned. More surprises coming. I think we're going to do even better with IaaS and the Oracle database in the Cloud."
The Board of Directors also declared a quarterly cash dividend of $0.15 per share of outstanding common stock. This dividend will be paid to stockholders of record as of the close of business on January 5, 2017, with a payment date of January 26, 2017.