Oracle’s Audit Report for Oracle Corporation, the world’s largest software company, was released on Wednesday.
The report reveals Oracle’s top-line financial performance, and it’s interesting to see how the auditor views the company’s performance over the past five years.
Oracle’s performance in the last five years While the auditor noted that Oracle’s « continuing expansion of Java and its ability to innovate are among the strengths, » the auditor said Oracle has « seen some significant and sustained headwinds. »
« Given that, Oracle has undertaken a comprehensive, sustained, and sustained cost reduction strategy, » the report reads.
« We expect Oracle’s cost per revenue unit to be below $0.20 for the remainder of this fiscal year. »
The company’s revenue, which includes its cloud-based software, has declined.
It has experienced a « significant decline in total revenue, operating margin, revenue share, and revenue per share » from 2014 to 2016, according to the report.
The auditor also pointed out that Oracle « has seen a decline in software revenue from its cloud platform » in 2016, and « in total revenue and operating margin from its software platform. »
And while the company did see revenue growth in the fourth quarter of 2017, that’s mostly due to the continued adoption of Oracle’s cloud computing platform.
This is just the latest chapter in Oracle’s ongoing battle with the government.
Oracle was caught red-handed in April, when the US Securities and Exchange Commission (SEC) accused the company of paying a total of $7 billion in taxes between 2004 and 2018.
In February, the US Department of Justice accused Oracle of violating tax laws by failing to report its profits for the years 2006 and 2008, as well as its profit-sharing payments to vendors.
Oracle was forced to pay $8 billion in a settlement with the DOJ.
Oracle has also been hit with a civil tax lawsuit by the US government, as part of a larger probe into the company.
Oracle has since admitted that it paid more than $2 billion in tax to the US Treasury over the years.
Oracle also said in its latest quarterly report that it will pay $10 billion to the DOJ in an effort to resolve the investigation.
While Oracle’s revenue has fallen over the last year, it continues to grow.
It’s clear that the company needs to find new ways to grow its revenue, but the auditor’s criticism of the company is a reminder of the challenges ahead.
Read more: Oracle’s financial statements for the past six years | Oracle’s 2016 Annual Report: Full 2016 Results | Oracle 2017 Annual Report