Investor Relations

Oracle offers a comprehensive and fully integrated stack of cloud applications, platform services, and engineered systems.

NYSE: ORCL Stock Quote

Stock Quote: NYSE

Price $48.94

Change -0.26 (-0.53%) November 17, 2017 04:02 PM ET Pricing delayed 20 minutes.

More

Volume 10,035,107

Today's Open 48.99

Previous Close 49.20

Close
Contact IR
Telephone: +1.650.506.4073 E-mail: investor_us@oracle.com
More
Corporate
Headquarters
Oracle Corporation
500 Oracle Parkway
Redwood Shores, CA 94065
Telephone: +1.650.506.7000
Close

Stay Connected:

Financial News Details

Oracle Reports Q3 Earnings per share of $0.11 vs $0.09 Last Year

March 18, 2003

Total Revenue Grew 2% and Net Income Grew 12%

Redwood Shores, Calif., March 18, 2003—

Today, Oracle Corporation announced that third quarter net income increased 12% to $571 million or $0.11 per share, while revenue grew 2% to $2.31 billion. This compares to $2.25 billion in revenue, $508 million in net income, and $0.09 per share in Q3 last year. New software license revenues were down 4% to $755 million, while software license updates and product support revenues were up 16% to $1.00 billion. Services revenues were down 8% to $547 million. Third quarter operating margin was 34.5%, compared to 34.6% in last year’s third quarter.

“Given the difficult global economy and the increasing uncertainty caused by the impending war in Iraq, we were pleased to see modest revenue and operating earnings growth in our fiscal third quarter. We also continued to generate strong operating cash flow which exceeded $2 billion for the first nine months,” said Jeff Henley, Oracle Chief Financial Officer.

“A study by the consulting firm of Current Analysis, published in December 2002, confirmed that Oracle is much less expensive to purchase, implement and run than SAP,” said Oracle CEO Larry Ellison. “These advantages allowed us to score several head-to-head wins against SAP in the quarter. ”

Oracle is the world’s largest enterprise software company. For more information about Oracle, including supplemental financial information, please call Investor Relations at (650) 506-4073 or visit Oracle on the web at www.oracle.com/investor.

"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995: Information in this release relating to Oracle's future prospects which are "forward-looking statements" are subject to certain risks and uncertainties that could cause actual results to differ materially, including, but not necessarily limited to, the following: 1) Economic, political and market conditions could continue to adversely affect purchasing decisions for computer software and services throughout the world. The war on terrorism and the potential for war or other hostilities in other parts of the world add to the climate of uncertainty that could adversely affect revenues. Delays in closing of sales, reductions in size of individual sales without an offsetting increase in volume or delays in product delivery can cause quarterly revenues and income to fall significantly short of anticipated levels. (2) Management's ability to forecast revenues and control expenses, especially on a quarterly basis, continues to be a challenge. An unexpected decline in revenues without a corresponding and timely slowdown in expense growth could have a material adverse effect on results of operations (3) Oracle is introducing new or revised versions

of its products and services, such as Oracle 9i Database, Oracle 9iAS Application Server, E-Business Suite, Oracle Collaboration Suite and Outsourcing; the market acceptance and contribution to Oracle's revenues of these new versions or products and services cannot be assured. (4) Oracle has made changes to its pricing model and sales organization, which could lead to a decline or delay in sales as its sales force and customers adjust to the new pricing policies and organizational changes. Intense competition in the various markets in which Oracle competes may also put pressure on Oracle to reduce prices on certain products. (5) The market for Oracle's products is intensely competitive and is characterized by rapid technological advances and frequent new product introductions. There can be no assurances that Oracle will continue to introduce new products and new versions of existing products that keep pace with technological developments, satisfy increasingly sophisticated customer requirements and achieve market acceptance. Oracle undertakes no obligation to update information contained in this release. For further information regarding risks and uncertainties associated with Oracle's business, please refer to the "Risk Factors" section of Oracle Corporation's SEC filings, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which may be obtained by contacting Oracle Corporation's

Investor Relations Department at
(650) 506-4073 or
Oracle's Investor Relations website at
http://www.oracle.com/investor.


ORACLE CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS ($ in thousands, except per share data)

(unaudited)

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

February 28,

 

 

 

February 28,

 

 

 

2003

 

 

2002

 

 

2003

 

 

2002

REVENUES

 

 

 

 

 

 

 

 

 

 

 

New software licenses and other

$

755,300

$

789,578

$

2,083,221

$

2,340,334

Software license updates and product support

 

1,004,314

 

 

866,397

 

 

2,863,030

 

 

2,590,697

Services (1)

 

547,281

 

 

597,345

 

 

1,696,700

 

 

1,967,781

Total Revenues

 

2,306,895

 

 

2,253,320

 

 

6,642,951

 

 

6,898,812

OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

521,042

 

 

514,816

 

 

1,504,636

 

 

1,621,449

Software licenses updates and product support

 

120,059

 

 

112,696

 

 

354,417

 

 

345,931

Cost of services (1)

 

454,501

 

 

458,748

 

 

1,407,431

 

 

1,491,336

Research and development

 

300,756

 

 

283,231

 

 

882,166

 

 

794,014

General and administrative

 

114,643

 

 

105,090

 

 

325,350

 

 

301,621

Total Operating Expenses

 

1,511,001

 

 

1,474,581

 

 

4,474,000

 

 

4,554,351

OPERATING INCOME

 

795,894

 

 

778,739

 

 

2,168,951

 

 

2,344,461

Net investment losses related to equity securities (2)

 

(5,738)

 

 

(7,510)

 

 

(108,158)

 

 

(14,199)

Other income, net

 

39,148

 

 

10,271

 

 

90,274

 

 

82,175

INCOME BEFORE TAXES

 

829,304

 

 

781,500

 

 

2,151,067

 

 

2,412,437

Provision for income taxes

 

257,963

 

 

273,525

 

 

702,132

 

 

844,353

NET INCOME

$

571,341

$

507,975

$

1,448,935

$

1,568,084

EARNINGS PER SHARE

 

 

 

 

 

 

 

 

 

 

 

Basic

$

0.11

$

0.09

$

0.27

$

0.28

Diluted

$

0.11

$

0.09

$

0.27

$

0.27

WEIGHTED SHARES OUTSTANDING

 

 

 

 

 

 

 

 

 

 

 

Basic

 

5,258,667

 

 

5,492,297

 

 

5,322,118

 

 

5,533,493

Diluted

 

5,383,379

 

 

5,669,334

 

 

5,439,397

 

 

5,715,071

 

 

 

 

 

 

 

 

 

 

 

 

(1)On March 1, 2002, Oracle adopted Financial Accounting Standards Board Emerging Issues Task Force No. 01-14, Income Statement Characterization of Reimbursements Received for ‘Out-of-Pocket’ Expenses Incurred. EITF 01-14 requires reimbursements received for out-of-pocket expenses be reflected as revenues and to reclassify prior period financial statements to conform with the current period presentation. Prior to the adoption of EITF 01-14, reimbursable out-of-pocket expenses were reflected as net amounts in “Cost of services”. Reimbursable out-of-pocket expenses reclassified as revenues in the three months ended February 28, 2002 were $23,977. Reimbursable out-of-pocket expenses reclassified as revenues in the nine months ended February 28, 2002 were $70,089.

(2)Net investment losses related to equity securities in the nine months ended February 28, 2003 of $108,158 include an $87,174 impairment charge related to Oracle’s investment in Liberate Technologies. Excluding the effect of the Liberate Technologies impairment charge, the effective income tax rate and provision for income taxes would have been 33% and $737,002 and net income and fully diluted earnings per share would have been $1,501,239 and $0.28.

ORACLE CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS DATA (unaudited)

 

Percentage of Revenues

 

Percentage of Revenues

Percentage Change

Percentage Change

 

Three Months

 

Nine Months

Three Months FY03

Nine Months FY03

 

Ended

 

 

Ended

 

vs.

vs.

 

February 28,

 

February 28,

Three Months FY02

Nine Months FY02

 

2003

 

 

2002

 

2003

 

 

2002

 

 

REVENUES

 

 

 

 

 

 

 

 

 

 

 

New software licenses and other

33%

 

 

35%

31%

 

 

34%

(4%)

(11%)

Software license updates and product support

43%

 

 

38%

43%

 

 

38%

16%

11%

Services

24%

 

 

27%

 

26%

 

 

28%

(8%)

(14%)

Total Revenues

100%

 

 

100%

100%

 

 

100%

2%

(4%)

OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

23%

 

 

23%

23%

 

 

23%

1%

(7%)

Software license updates and product support

5%

 

 

5%

5%

 

 

5%

7%

2%

Cost of services

20%

 

 

20%

21%

 

 

22%

(1%)

(6%)

Research and development

13%

 

 

12%

13%

 

 

12%

6%

11%

General and administrative

5%

 

 

5%

 

5%

 

 

4%

9%

8%

Total Operating Expenses

66%

 

 

65%

 

67%

 

 

66%

2%

(2%)

OPERATING INCOME

34%

 

 

35%

33%

 

 

34%

2%

(7%)

Net investment losses related to

 

 

 

 

 

 

 

 

 

 

 

equity securities

0%

 

 

0%

(2%)

 

 

0%

(24%)

662%

Other income, net

2%

 

 

0%

 

1%

 

 

1%

281%

10%

INCOME BEFORE TAXES

36%

 

 

35%

32%

 

 

35%

6%

(11%)

Provision for income taxes

11%

 

 

12%

 

10%

 

 

12%

(6%)

(17%)

NET INCOME

25%

 

 

23%

 

22%

 

 

23%

12%

(8%)

ORACLE CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS ($ in thousands)

 

 

February 28,

 

 

May 31,

 

 

2003

 

 

2002

 

 

(unaudited)

 

 

 

ASSETS

 

 

 

 

 

Current Assets

 

 

 

 

 

Cash and cash equivalents

$

4,088,256

 

$

3,095,109

Short-term investments

 

1,951,555

 

 

2,746,069

Trade receivables, net

 

1,421,594

 

 

2,034,996

Deferred tax assets

 

460,512

 

 

451,994

Other current assets

 

322,012

*

 

399,776

Total Current Assets

 

8,243,929

 

 

8,727,944

Long-term investments

 

224,000

 

 

405,883

Property, net

 

898,791

 

 

986,970

Deferred tax assets

 

224,260

 

 

233,359

Intangible and other assets

 

357,183

*

 

446,206

TOTAL ASSETS

$

9,948,163

 

$

10,800,362

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

Current portion of long-term debt

$

152,980

*

$

-

Accounts payable

 

222,694

 

 

227,393

Income taxes payable

 

928,427

 

 

1,091,293

Other current liabilities

 

1,289,685

 

 

1,399,660

Deferred revenues

 

1,225,230

 

 

1,241,471

Total Current Liabilities

 

3,819,016

 

 

3,959,817

Long-term debt

 

162,072

*

 

298,391

Deferred tax liabilities

 

174,555

 

 

204,073

Other long-term liabilities

 

208,251

 

 

220,791

Stockholders' equity

 

5,584,269

 

 

6,117,290

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

9,948,163

 

$

10,800,362

 

 

 

 

 

 

*These items were revised after the initial release to reflect the reclassification of $150 million debt and related $3 million interest rate swap, which mature in February 2004, as current.

ORACLE CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS ($ in thousands)

(unaudited)

Nine Months Ended

February 28,

 

 

2003

 

 

2002

Cash Flows From Operating Activities:

 

 

 

 

 

Net income

$

1,448,935

$

1,568,084

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

Depreciation

 

192,848

 

 

193,657

Amortization of intangible assets

 

64,550

 

 

39,785

Net investment losses related to equity securities

 

108,158

 

 

14,199

Deferred income taxes

 

(18,642)

 

 

(27,537)

Changes in assets and liabilities:

 

 

 

 

 

Decrease in trade receivables

 

665,019

 

 

789,416

(Increase) decrease in prepaid expenses and other assets

 

103,537

 

 

(152,978)

Decrease in accounts payable and other current liabilities

 

(182,456)

 

 

(337,115)

Increase (decrease) in income tax payable

 

(105,030)

 

 

254,854

Decrease in deferred revenues

 

(67,679)

 

 

(186,684)

Increase (decrease) in other long-term liabilities

 

(12,736)

 

 

2,517

Net cash provided by operating activities

 

2,196,504

 

 

2,158,198

Cash Flows From Investing Activities:

 

 

 

 

 

Purchases of investments

 

(3,066,089)

 

 

(4,289,986)

Proceeds from sale of investments

 

4,064,182

 

 

3,257,540

Capital expenditures

 

(88,318)

 

 

(198,871)

Increase in other assets

 

(63,822)

 

 

(9,011)

Net cash provided by (used for) investing activities

 

845,953

 

 

(1,240,328)

Cash Flows From Financing Activities:

 

 

 

 

 

Payments for repurchase of common stock

 

(2,196,098)

 

 

(2,051,176)

Proceeds from issuance of common stock

 

199,999

 

 

217,168

Settlement of forward contract

 

(166,260)

 

 

-

Payments under notes payable and long-term debt

 

-

 

 

(744)

Net cash used for financing activities

 

(2,162,359)

 

 

(1,834,752)

Effect of exchange rate changes on cash and cash equivalents

 

113,049

 

 

(73,093)

Net increase (decrease) in cash and cash equivalents

 

993,147

 

 

(989,975)

Cash and cash equivalents at beginning of period

 

3,095,109

 

 

4,449,166

Cash and cash equivalents at end of period

$

4,088,256

 

$

3,459,191

 

 

 

 

 

 

Receive E-mail Alerts

E-mail Address *
Mailing Lists *



 
Enter the code shown above.