WELLINGTON: Oracle New Zealand saw revenue drop 8% last financial year, but the company bounced back into the black with a net profit of more than $2.1 million. The company’s financial report, for the year ending 31 May, 2015, shows revenue of $127.5 million, down from $138.8 million a year earlier, with gross profit of $32.4 million, down from $35.4 million.
However significant decreases in expenses, including employee benefits expenses, which were down $4.8 million to $24.5 million, bolstered the companies net profit for the period.
Just a year ago, Oracle New Zealand recorded a net loss of $578,029, however, the 2015 financial year saw the company recording significant turnaround, with net profit, net of tax, of $2.1 million.
The company’s revenue includes license fees, maintenance agreements, consulting, training and other services, as well as revenue from the sale of hardware. Revenue for sale of goods and services accounted for $125.6 million, down from $137.0 million, with interest from both related and unrelated parties making up the remaining revenue for the local operations.
The company recorded bad and doubtful debts of $338,869, and foreign exchange losses of $118,453. Income tax expense jumped from $474,930 to $1.0 million. Oracle New Zealand also paid $15.4 million in management fees and $69.8 million in royalties, with the majority of related party transactions with parent company, Oracle CAPAC Services.
The report shows the company closed out the financial year with assets to the tune of $123.5 million – down from 2014’s $147.9 and total liabilities of $61.4 million, down from $88.2 million. Total equity for the company sat at $62.0 million, up from $59.6 million.
