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 +0.00 (+0%) November 17, 2017 05:00 PM ET Pricing delayed 20 minutes.

More

Volume 9,965,500

Today's Open 49.00

Previous Close 48.94

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 Q1 GAAP EPS Up 14% to 47 Cents; Q1 Non-GAAP EPS Up 12% to 59 Cents

September 18, 2013
Q1 Operating Cash Flow Increases to $6.3 Billion, TTM Operating Cash Flow Increases to $14.8 Billion

REDWOOD SHORES, CA -- (Marketwired) -- 09/18/13 -- Oracle Corporation (NYSE: ORCL) today announced that both fiscal 2014 Q1 GAAP and non-GAAP total revenues were up 2% to $8.4 billion. GAAP new software licenses and cloud software subscriptions revenues were up 5% to $1.7 billion while non-GAAP new software licenses and cloud software subscriptions revenues were up 4% to $1.7 billion. Both GAAP and non-GAAP software license updates and product support revenues were up 7% to $4.4 billion. Hardware systems products revenues were $669 million. GAAP operating income was flat at $2.9 billion, and GAAP operating margin was 34%. Non-GAAP operating income was up 4% to $3.7 billion, and non-GAAP operating margin was 45%. GAAP net income was up 8% to $2.2 billion, while non-GAAP net income was up 6% to $2.8 billion. GAAP earnings per share were up 14% to $0.47, while non-GAAP earnings per share were up 12% to $0.59. GAAP operating cash flow on a trailing twelve-month basis was $14.8 billion.

Without the impact of the US dollar strengthening compared to foreign currencies, Oracle's reported Q1 GAAP earnings per share would have been up 17% and non-GAAP earnings per share would have been up 14%. GAAP and non-GAAP total revenues also would have been up 4%; GAAP new software licenses and cloud software subscriptions revenues would have been up 7% while non-GAAP new software licenses and cloud software subscriptions revenues would have been up 6%.

"Non-GAAP earnings per share increased 12% to $0.59, the best ever result for the first quarter of our fiscal year," said Oracle President and CFO, Safra Catz . "Those record level earnings were enabled by an operating margin of 45% for the quarter. We also set a free cash flow record of over $6 billion in Q1, and then we returned half of that to our stockholders by repurchasing $3 billion of our shares in the quarter."

"Engineered systems had its best ever Q1 in terms of unit sales, growing over 60% compared with the same quarter last year," said Oracle President Mark Hurd . "New software license results were especially strong in the Americas, which saw 15% growth in constant currency."

"Next week at Oracle OpenWorld, we will announce the In-Memory Option for the Oracle database," said Oracle CEO, Larry Ellison . "Virtually every existing application that runs on top of the Oracle database will run dramatically faster by simply turning on the new In-Memory feature. Our customers don't have to make any changes to their applications whatsoever; they simply flip on the in-memory switch, and the Oracle database immediately starts scanning data at a rate of billions or tens of billions of rows per second."

The Board of Directors declared a quarterly cash dividend of $0.12 per share of outstanding common stock. This dividend will be paid to stockholders of record as of the close of business on October 8, 2013, with a payment date of October 29, 2013.

Q1 Fiscal 2014 Earnings Conference Call and Webcast

Oracle will hold a conference call and webcast today to discuss these results at 2:00 p.m. Pacific. You may listen to the call by dialing (913) 312-6699, Passcode: 790817. To access the live webcast of this event, please visit the Oracle Investor Relations website at http://www.oracle.com/investor. In addition, Oracle's Q1 results and Fiscal 2014 financial tables are available on the Oracle Investor Relations website.

A replay of the conference call will also be available by dialing (719) 457-0820 or (888) 203-1112, Passcode: 7920718.

About Oracle

Oracle engineers hardware and software to work together in the cloud and in your data center. For more information about Oracle (NYSE: ORCL), visit www.oracle.com or contact Investor Relations at investor_us@oracle.com or (650) 506-4073.

Trademarks
Oracle and Java are registered trademarks of Oracle and/or its affiliates. Other names may be trademarks of their respective owners.

"Safe Harbor" Statement: Statements in this press release relating to Oracle's future plans, expectations, beliefs, intentions and prospects, including statements regarding the In-Memory Option for the Oracle database to be announced at Oracle OpenWorld, are "forward-looking statements" and are subject to material risks and uncertainties. Many factors could affect our current expectations and our actual results, and could cause actual results to differ materially. We presently consider the following to be among the important factors that could cause actual results to differ materially from expectations: (1) Economic, political and market conditions, including the current European economic crisis and slowing economic conditions in other parts of the world, can adversely affect our business, results of operations and financial condition, including our revenue growth and profitability, which in turn could adversely affect our stock price. (2) We may fail to achieve our financial forecasts due to such factors as delays or size reductions in transactions, fewer large transactions in a particular quarter, unanticipated fluctuations in currency exchange rates, delays in delivery of new products or releases or a decline in our renewal rates for support contracts. (3) Our hardware systems revenues and profitability could decline further, and we may fail to achieve our financial forecasts with respect to this business. (4) We have an active acquisition program and our acquisitions may not be successful, may involve unanticipated costs or other integration issues or may disrupt our existing operations. (5) Our international sales and operations subject us to additional risks that can adversely affect our operating results, including risks relating to foreign currency gains and losses. (6) Our periodic workforce restructurings, including reorganizations of our sales force, can be disruptive. (7) If we are unable to develop new or sufficiently differentiated products and services, or to enhance and improve our products and support services in a timely manner or to position and/or price our products and services to meet market demand, customers may not buy new software licenses, cloud software subscriptions or hardware systems products or purchase or renew support contracts. A detailed discussion of these factors and other risks that affect our business is contained in our SEC filings, including our most recent reports on Form 10-K and Form 10-Q, particularly under the heading "Risk Factors." Copies of these filings are available online from the SEC or by contacting Oracle Corporation's Investor Relations Department at (650) 506-4073 or by clicking on SEC Filings on Oracle's Investor Relations website at http://www.oracle.com/investor. All information set forth in this press release is current as of September 18, 2013. Oracle undertakes no duty to update any statement in light of new information or future events.

                             ORACLE CORPORATION
                      Q1 FISCAL 2014 FINANCIAL RESULTS
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                   ($ in millions, except per share data)

                      Three Months Ended August 31,
                    ---------------------------------
                                                                 % Increase
                                                                 (Decrease)
                                                                     in
                                                      % Increase  Constant
                              % of             % of   (Decrease)  Currency
                      2013  Revenues   2012  Revenues   in US $      (1)
                    ------- -------- ------- -------- ---------- ----------
REVENUES
  New software
   licenses and
   cloud software
   subscriptions    $ 1,653    20%   $ 1,574    19%       5%         7%
  Software license
   updates and
   product support    4,431    53%     4,140    51%       7%         8%
                    ------- -------- ------- --------
    Software
     Revenues         6,084    73%     5,714    70%       6%         8%
                    ------- -------- ------- --------
  Hardware systems
   products             669    8%        779    9%       (14%)      (13%)
  Hardware systems
   support              592    7%        574    7%        3%         5%
                    ------- -------- ------- --------
    Hardware Systems
     Revenues         1,261    15%     1,353    16%      (7%)       (6%)
                    ------- -------- ------- --------
    Services
     Revenues         1,027    12%     1,114    14%      (8%)       (6%)
                    ------- -------- ------- --------
      Total Revenues  8,372   100%     8,181   100%       2%         4%
                    ------- -------- ------- --------
OPERATING EXPENSES
  Sales and
   marketing          1,708    20%     1,545    19%       11%        12%
  Software license
   updates and
   product support      288    3%        283    3%        2%         3%
  Hardware systems
   products             330    4%        384    5%       (14%)      (13%)
  Hardware systems
   support              209    3%        224    3%       (7%)       (6%)
  Services              806    10%       884    11%      (9%)       (7%)
  Research and
   development        1,237    15%     1,201    15%       3%         4%
  General and
   administrative       260    3%        275    3%       (5%)       (4%)
  Amortization of
   intangible assets    595    7%        619    7%       (4%)       (4%)
  Acquisition
   related and other
   (2)                   10    0%       (258)  (3%)      104%       104%
  Restructuring          56    1%        145    2%       (61%)      (62%)
                    ------- -------- ------- --------
      Total
       Operating
       Expenses       5,499    66%     5,302    65%       4%         5%
                    ------- -------- ------- --------
OPERATING INCOME      2,873    34%     2,879    35%       0%         2%
  Interest expense     (217)  (2%)      (188)  (2%)       15%        15%
  Non-operating
   income, net            7    0%         11    0%       (40%)       36%
                    ------- -------- ------- --------
INCOME BEFORE
 PROVISION FOR
 INCOME TAXES         2,663    32%     2,702    33%      (1%)        1%
                    ------- -------- ------- --------
  Provision for
   income taxes         472    6%        668    8%       (29%)      (28%)
                    ------- -------- ------- --------
NET INCOME          $ 2,191    26%   $ 2,034    25%       8%         10%
                    ======= ======== ======= ========

EARNINGS PER SHARE:
  Basic             $  0.48          $  0.42
  Diluted           $  0.47          $  0.41
WEIGHTED AVERAGE
 COMMON SHARES
 OUTSTANDING:
  Basic               4,608            4,867
  Diluted             4,674            4,939


(1) We compare the percent change in the results from one period to another
    period using constant currency disclosure. We present constant currency
    information to provide a framework for assessing how our underlying
    businesses performed excluding the effect of foreign currency rate
    fluctuations. To present this information, current and comparative prior
    period results for entities reporting in currencies other than United
    States dollars are converted into United States dollars at the exchange
    rates in effect on May 31, 2013, which was the last day of our prior
    fiscal year, rather than the actual exchange rates in effect during the
    respective periods. Movements in international currencies relative to
    the United States dollar during the three months ended August 31, 2013
    compared with the corresponding prior year period decreased our revenues
    by 2 percentage points, operating expenses by 1 percentage point and
    operating income by 2 percentage points.

(2) Acquisition related and other expenses for the three months ended August
    31, 2012 included a benefit of $306 million related to certain
    litigation.



                             ORACLE CORPORATION
                      Q1 FISCAL 2014 FINANCIAL RESULTS
      RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1)
                   ($ in millions, except per share data)

                                   Three Months Ended August 31,
                        ---------------------------------------------------
                          2013             2013     2012             2012
                          GAAP    Adj.   Non-GAAP   GAAP    Adj.   Non-GAAP
                        -------  ------  -------- -------  ------  --------

TOTAL REVENUES (3) (4)  $ 8,372  $    9  $  8,381 $ 8,181  $   28  $  8,209

TOTAL SOFTWARE REVENUES
 (3)                    $ 6,084  $    4  $  6,088 $ 5,714  $   24  $  5,738
  New software licenses
   and cloud software
   subscriptions (3)      1,653       3     1,656   1,574      19     1,593
  Software license
   updates and product
   support                4,431       1     4,432   4,140       5     4,145

TOTAL HARDWARE SYSTEMS
 REVENUES (4)           $ 1,261  $    5  $  1,266 $ 1,353  $    4  $  1,357
  Hardware systems
   products                 669       -       669     779       -       779
  Hardware systems
   support (4)              592       5       597     574       4       578

TOTAL OPERATING
 EXPENSES               $ 5,499  $ (859) $  4,640 $ 5,302  $ (682) $  4,620
  Stock-based
   compensation (5)         198    (198)        -     176    (176)        -
  Amortization of
   intangible assets
   (6)                      595    (595)        -     619    (619)        -
  Acquisition related
   and other                 10     (10)        -    (258)    258         -
  Restructuring              56     (56)        -     145    (145)        -

OPERATING INCOME        $ 2,873  $  868  $  3,741 $ 2,879  $  710  $  3,589

OPERATING MARGIN %          34%               45%     35%               44%

INCOME TAX EFFECTS (7)  $   472  $  298  $    770 $   668  $  130  $    798

NET INCOME              $ 2,191  $  570  $  2,761 $ 2,034  $  580  $  2,614

DILUTED EARNINGS PER
 SHARE                  $  0.47          $   0.59 $  0.41          $   0.53

DILUTED WEIGHTED
 AVERAGE COMMON SHARES
 OUTSTANDING              4,674       -     4,674   4,939       -     4,939


                                             % Increase
                           % Increase      (Decrease) in
                        (Decrease) in US Constant Currency
                               $                (2)
                       ----------------- -----------------
                         GAAP   Non-GAAP   GAAP   Non-GAAP
                       -------- -------- -------- --------

TOTAL REVENUES (3) (4)    2%       2%       4%       4%

TOTAL SOFTWARE REVENUES
 (3)                      6%       6%       8%       8%
  New software licenses
   and cloud software
   subscriptions (3)      5%       4%       7%       6%
  Software license
   updates and product
   support                7%       7%       8%       8%

TOTAL HARDWARE SYSTEMS
 REVENUES (4)            (7%)     (7%)     (6%)     (5%)
  Hardware systems
   products              (14%)    (14%)    (13%)    (13%)
  Hardware systems
   support (4)            3%       3%       5%       5%

TOTAL OPERATING
 EXPENSES                 4%       0%       5%       2%
  Stock-based
   compensation (5)       12%       *       12%       *
  Amortization of
   intangible assets
   (6)                   (4%)       *      (4%)       *
  Acquisition related
   and other             104%       *      104%       *
  Restructuring          (61%)      *      (62%)      *

OPERATING INCOME          0%       4%       2%       6%

OPERATING MARGIN %     (87) bp.  91 bp.  (66) bp.  99 bp.

INCOME TAX EFFECTS (7)   (29%)    (4%)     (28%)    (2%)

NET INCOME                8%       6%       10%      8%

DILUTED EARNINGS PER
 SHARE                    14%      12%      17%      14%

DILUTED WEIGHTED
 AVERAGE COMMON SHARES
 OUTSTANDING             (5%)     (5%)     (5%)     (5%)

(1) This presentation includes non-GAAP measures. Our non-GAAP measures are
    not meant to be considered in isolation or as a substitute for
    comparable GAAP measures, and should be read only in conjunction with
    our consolidated financial statements prepared in accordance with GAAP.
    For a detailed explanation of the adjustments made to comparable GAAP
    measures, the reasons why management uses these measures, the usefulness
    of these measures and the material limitations on the usefulness of
    these measures, please see Appendix A.

(2) We compare the percent change in the results from one period to another
    period using constant currency disclosure. We present constant currency
    information to provide a framework for assessing how our underlying
    businesses performed excluding the effect of foreign currency rate
    fluctuations. To present this information, current and comparative prior
    period results for entities reporting in currencies other than United
    States dollars are converted into United States dollars at the exchange
    rates in effect on May 31, 2013, which was the last day of our prior
    fiscal year, rather than the actual exchange rates in effect during the
    respective periods.

(3) As of August 31 2013, approximately $3 million in estimated revenues
    related to assumed cloud software subscriptions contracts will not be
    recognized for remainder of fiscal 2014 due to business combination
    accounting rules.

(4) As of August 31, 2013, approximately $7 million in estimated revenues
    related to hardware systems support contracts will not be recognized for
    the remainder of fiscal 2014 due to business combination accounting
    rules.

(5) Stock-based compensation was included in the following GAAP operating
    expense categories:

                           Three Months Ended         Three Months Ended
                             August 31, 2013            August 31, 2012
                       -------------------------- --------------------------
                         GAAP     Adj.   Non-GAAP   GAAP     Adj.   Non-GAAP
                       -------- -------  -------- -------- -------  --------
    Sales and
     marketing         $     41 $   (41) $      - $     37 $   (37) $      -
    Software license
     updates and
     product support          6      (6)        -        5      (5)        -
    Hardware systems
     products                 2      (2)        -        -       -         -
    Hardware systems
     support                  3      (3)        -        1      (1)        -
    Services                  7      (7)        -        9      (9)        -
    Research and
     development             97     (97)        -       83     (83)        -
    General and
     administrative          42     (42)        -       41     (41)        -
                       -------- -------  -------- -------- -------  --------
      Subtotal              198    (198)        -      176    (176)        -
                       -------- -------  -------- -------- -------  --------
    Acquisition
     related and other        2      (2)        -       17     (17)        -
                       -------- -------  -------- -------- -------  --------
      Total stock-
       based
       compensation    $    200 $  (200) $      - $    193 $  (193) $      -
                       ======== =======  ======== ======== =======  ========

(6) Estimated future annual amortization expense related to intangible
    assets as of August 31, 2013 was as follows:

    Remainder of
     Fiscal 2014       $  1,637
    Fiscal 2015           1,763
    Fiscal 2016           1,193
    Fiscal 2017             622
    Fiscal 2018             496
    Fiscal 2019             411
    Thereafter              675
                       --------
      Total intangible
       assets subject
       to amortization    6,797
    In-process
     research and
     development            117
                       --------
      Total intangible
       assets, net     $  6,914
                       ========

(7) Income tax effects were calculated reflecting an effective GAAP tax rate
    of 17.7% and 24.7% in the first quarter of fiscal 2014 and 2013,
    respectively, and an effective non-GAAP tax rate of 21.8% and 23.4% in
    the first quarter of fiscal 2014 and 2013, respectively. The difference
    between our GAAP and non-GAAP tax rates in the first quarter of fiscal
    2014 was primarily due to the net tax effects of acquisition related
    items, including the tax effect of amortization of intangible assets.
    The difference between our GAAP and non-GAAP tax rates in the first
    quarter of fiscal 2013 was primarily due to the disproportionate tax
    rate impact of discrete items for the quarter, the tax effect of
    amortization of intangible assets, and differences in jurisdictional tax
    rates and related tax benefits attributable to our restructuring
    expenses.

*   Not meaningful



                             ORACLE CORPORATION
                      Q1 FISCAL 2014 FINANCIAL RESULTS
                    CONDENSED CONSOLIDATED BALANCE SHEETS
                               ($ in millions)

                                                  August 31,      May 31,
                                                     2013           2013
                                                -------------  -------------
ASSETS

  Current Assets:
    Cash and cash equivalents                   $      19,664  $      14,613
    Marketable securities                              19,440         17,603
    Trade receivables, net                              3,450          6,049
    Inventories                                           243            240
    Deferred tax assets                                   937            974
    Prepaid expenses and other current assets           1,723          2,213
                                                -------------  -------------
      Total Current Assets                             45,457         41,692

  Non-Current Assets:
    Property, plant and equipment, net                  3,052          3,053
    Intangible assets, net                              6,914          6,640
    Goodwill                                           27,965         27,343
    Deferred tax assets                                   722            766
    Other assets                                        2,296          2,318
                                                -------------  -------------
      Total Non-Current Assets                         40,949         40,120
                                                -------------  -------------

TOTAL ASSETS                                    $      86,406  $      81,812
                                                =============  =============

LIABILITIES AND EQUITY

  Current Liabilities:
    Notes payable, current and other current
     borrowings                                 $       1,533  $           -
    Accounts payable                                      367            419
    Accrued compensation and related benefits           1,425          1,851
    Income taxes payable                                  571            911
    Deferred revenues                                   8,524          7,118
    Other current liabilities                           2,106          2,573
                                                -------------  -------------

      Total Current Liabilities                        14,526         12,872

  Non-Current Liabilities:
    Notes payable and other non-current
     borrowings                                        22,575         18,494
    Income taxes payable                                3,860          3,899
    Other non-current liabilities                       1,459          1,402
                                                -------------  -------------

      Total Non-Current Liabilities                    27,894         23,795

  Equity                                               43,986         45,145
                                                -------------  -------------

TOTAL LIABILITIES AND EQUITY                    $      86,406  $      81,812
                                                =============  =============




                             ORACLE CORPORATION
                      Q1 FISCAL 2014 FINANCIAL RESULTS
              CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                              ($ in millions)

                                                     Three Months Ended
                                                         August 31,
                                                 --------------------------
                                                     2013          2012
                                                 ------------  ------------
Cash Flows From Operating Activities:
  Net income                                     $      2,191  $      2,034
  Adjustments to reconcile net income to net
   cash provided by operating activities:
    Depreciation                                          150           127
    Amortization of intangible assets                     595           619
    Deferred income taxes                                (101)           64
    Stock-based compensation                              200           193
    Tax benefits on the exercise of stock
     options and vesting of restricted stock-
     based awards                                          67           120
    Excess tax benefits on the exercise of stock
     options and vesting of restricted stock-
     based awards                                         (40)          (62)
    Other, net                                             17            37
    Changes in operating assets and liabilities,
     net of effects from acquisitions:
      Decrease in trade receivables, net                2,707         2,630
      Decrease in inventories                               5            10
      Decrease (increase) in prepaid expenses
       and other assets                                   366           (72)
      Decrease in accounts payable and other
       liabilities                                       (994)         (943)
      Decrease in income taxes payable                   (313)         (329)
      Increase in deferred revenues                     1,442         1,243
                                                 ------------  ------------

        Net cash provided by operating
         activities                                     6,292         5,671
                                                 ------------  ------------

Cash Flows From Investing Activities:
  Purchases of marketable securities and other
   investments                                         (8,549)       (6,804)
  Proceeds from maturities and sales of
   marketable securities and other investments          6,515         6,794
  Acquisitions, net of cash acquired                   (1,314)         (361)
  Capital expenditures                                   (153)         (139)
                                                 ------------  ------------

        Net cash used for investing activities         (3,501)         (510)
                                                 ------------  ------------

Cash Flows From Financing Activities:
  Payments for repurchases of common stock             (2,968)       (3,076)
  Proceeds from issuances of common stock                 285           517
  Payments of dividends to stockholders                  (554)         (292)
  Proceeds from borrowings, net of issuance
   costs                                                5,566             -
  Repayments of borrowings                                  -        (1,700)
  Excess tax benefits on the exercise of stock
   options and vesting of restricted stock-based
   awards                                                  40            62
  Distributions to noncontrolling interests               (28)          (31)
                                                 ------------  ------------

        Net cash provided by (used for)
         financing activities                           2,341        (4,520)
                                                 ------------  ------------

Effect of exchange rate changes on cash and cash
 equivalents                                              (81)           71
                                                 ------------  ------------

Net increase in cash and cash equivalents               5,051           712
                                                 ------------  ------------

Cash and cash equivalents at beginning of period       14,613        14,955
                                                 ------------  ------------

Cash and cash equivalents at end of period       $     19,664  $     15,667
                                                 ============  ============



                             ORACLE CORPORATION
                      Q1 FISCAL 2014 FINANCIAL RESULTS
                  FREE CASH FLOW - TRAILING 4-QUARTERS (1)
                               ($ in millions)

                             Fiscal 2013                   Fiscal 2014
                 ----------------------------------  -----------------------
                    Q1       Q2       Q3       Q4       Q1     Q2   Q3   Q4
                 -------  -------  -------  -------  -------  ---- ---- ----

GAAP Operating
 Cash Flow       $13,993  $13,533  $13,717  $14,224  $14,845

Capital
 Expenditures
 (2)                (627)    (710)    (684)    (650)    (664)
                 -------  -------  -------  -------  -------  ---- ---- ----

Free Cash Flow   $13,366  $12,823  $13,033  $13,574  $14,181
                 =======  =======  =======  =======  =======  ==== ==== ====

% Growth over
 prior year            8%       2%       1%       4%       6%

                 -------  -------  -------  -------  -------  ---- ---- ----

GAAP Net Income  $10,175  $10,564  $10,571  $10,925  $11,082

Free Cash Flow
 as a % of Net
 Income              131%     121%     123%     124%     128%

(1) To supplement our statements of cash flows presented on a GAAP basis, we
    use non-GAAP measures of cash flows on a trailing 4-quarter basis to
    analyze cash flow generated from operations. We believe free cash flow
    is also useful as one of the bases for comparing our performance with
    our competitors. The presentation of non-GAAP free cash flow is not
    meant to be considered in isolation or as an alternative to net income
    as an indicator of our performance, or as an alternative to cash flows
    from operating activities as a measure of liquidity.

(2) Derived from capital expenditures as reported in cash flows from
    investing activities as per our consolidated statements of cash flows
    presented in accordance with GAAP.



                             ORACLE CORPORATION
                      Q1 FISCAL 2014 FINANCIAL RESULTS
          SUPPLEMENTAL ANALYSIS OF GAAP REVENUES AND HEADCOUNT (1)
                               ($ in millions)

                                             Fiscal 2013
                          ------------------------------------------------
                             Q1        Q2        Q3        Q4       TOTAL
                          --------  --------  --------  --------  --------
REVENUES
 New software licenses
  and cloud software
  subscriptions           $  1,574  $  2,389  $  2,332  $  4,026  $ 10,321
 Software license updates
  and product support        4,140     4,260     4,340     4,402    17,142
                          --------  --------  --------  --------  --------
   Software Revenues         5,714     6,649     6,672     8,428    27,463

 Hardware systems
  products                     779       734       671       849     3,033
 Hardware systems support      574       587       570       582     2,313
                          --------  --------  --------  --------  --------
   Hardware Systems
    Revenues                 1,353     1,321     1,241     1,431     5,346

   Services Revenues         1,114     1,124     1,045     1,088     4,371

                          --------  --------  --------  --------  --------
    Total Revenues        $  8,181  $  9,094  $  8,958  $ 10,947  $ 37,180
                          ========  ========  ========  ========  ========

AS REPORTED REVENUE
 GROWTH RATES
 New software licenses
  and cloud software
  subscriptions                  5%       17%       (2%)       1%        4%
 Software license updates
  and product support            3%        7%        7%        6%        6%
   Software Revenues             4%       10%        4%        4%        5%

 Hardware systems
  products                     (24%)     (23%)     (23%)     (13%)     (21%)
 Hardware systems support      (11%)      (6%)      (6%)      (3%)      (7%)
   Hardware Systems
    Revenues                   (19%)     (16%)     (16%)      (9%)     (15%)

   Services Revenues            (6%)      (5%)      (8%)      (9%)      (7%)

    Total Revenues              (2%)       3%       (1%)       0%        0%

CONSTANT CURRENCY GROWTH
 RATES (2)
 New software licenses
  and cloud software
  subscriptions                 10%       18%        0%        2%        6%
 Software license updates
  and product support            8%        8%        8%        8%        8%
   Software Revenues             9%       11%        5%        5%        7%

 Hardware systems
  products                     (21%)     (23%)     (22%)     (12%)     (19%)
 Hardware systems support       (6%)      (5%)      (5%)      (1%)      (4%)
   Hardware Systems
    Revenues                   (15%)     (16%)     (15%)      (8%)     (13%)

   Services Revenues             0%       (3%)      (7%)      (8%)      (5%)

    Total Revenues               3%        5%        0%        2%        2%

                          --------  --------  --------  --------  --------

GEOGRAPHIC REVENUES

 REVENUES
  Americas                $  4,324  $  4,787  $  4,698  $  5,911  $ 19,719
  Europe, Middle East &
   Africa                    2,383     2,701     2,745     3,328    11,158
  Asia Pacific               1,474     1,606     1,515     1,708     6,303
                          --------  --------  --------  --------  --------
     Total Revenues       $  8,181  $  9,094  $  8,958  $ 10,947  $ 37,180
                          ========  ========  ========  ========  ========


HEADCOUNT

 GEOGRAPHIC AREA
  Americas                  49,145    49,584    50,402    51,519
  Europe, Middle East &
   Africa                   22,584    22,594    22,592    22,860
  Asia Pacific              44,170    45,051    45,663    45,855
                          --------  --------  --------  --------  --------
     Total Company         115,899   117,229   118,657   120,234
                          ========  ========  ========  ========  ========



                                             Fiscal 2014
                          ------------------------------------------------
                             Q1        Q2        Q3        Q4       TOTAL
                          --------  --------  --------  --------  --------
REVENUES
 New software licenses
  and cloud software
  subscriptions           $  1,653                                $  1,653
 Software license updates
  and product support        4,431                                   4,431
                          --------  --------  --------  --------  --------
   Software Revenues         6,084                                   6,084

 Hardware systems
  products                     669                                     669
 Hardware systems support      592                                     592
                          --------  --------  --------  --------  --------
   Hardware Systems
    Revenues                 1,261                                   1,261

   Services Revenues         1,027                                   1,027

                          --------  --------  --------  --------  --------
    Total Revenues        $  8,372                                $  8,372
                          ========  ========  ========  ========  ========

AS REPORTED REVENUE
 GROWTH RATES
 New software licenses
  and cloud software
  subscriptions                  5%                                      5%
 Software license updates
  and product support            7%                                      7%
   Software Revenues             6%                                      6%

 Hardware systems
  products                     (14%)                                   (14%)
 Hardware systems support        3%                                      3%
   Hardware Systems
    Revenues                    (7%)                                    (7%)

   Services Revenues            (8%)                                    (8%)

    Total Revenues               2%                                      2%

CONSTANT CURRENCY GROWTH
 RATES (2)
 New software licenses
  and cloud software
  subscriptions                  7%                                      7%
 Software license updates
  and product support            8%                                      8%
   Software Revenues             8%                                      8%

 Hardware systems
  products                     (13%)                                   (13%)
 Hardware systems support        5%                                      5%
   Hardware Systems
    Revenues                    (6%)                                    (6%)

   Services Revenues            (6%)                                    (6%)

    Total Revenues               4%                                      4%

                          --------  --------  --------  --------  --------

GEOGRAPHIC REVENUES

 REVENUES
  Americas                $  4,517                                $  4,517
  Europe, Middle East &
   Africa                    2,439                                   2,439
  Asia Pacific               1,416                                   1,416
                          --------  --------  --------  --------  --------
     Total Revenues       $  8,372                                $  8,372
                          ========  ========  ========  ========  ========


HEADCOUNT

 GEOGRAPHIC AREA
  Americas                  53,465
  Europe, Middle East &
   Africa                   23,349
  Asia Pacific              45,513
                          --------  --------  --------  --------  --------
     Total Company         122,327
                          ========  ========  ========  ========  ========

(1) The sum of the quarterly financial information may vary from year-to-
    date financial information due to rounding.

(2) We compare the percent change in the results from one period to another
    period using constant currency disclosure. We present constant currency
    information to provide a framework for assessing how our underlying
    businesses performed excluding the effect of foreign currency rate
    fluctuations. To present this information, current and comparative prior
    period results for entities reporting in currencies other than United
    States dollars are converted into United States dollars at the exchange
    rates in effect on May 31, 2013 and 2012 for the fiscal 2014 and fiscal
    2013 constant currency growth rate calculations presented, respectively,
    rather than the actual exchange rates in effect during the respective
    periods.



                             ORACLE CORPORATION
                      Q1 FISCAL 2014 FINANCIAL RESULTS
                SUPPLEMENTAL GEOGRAPHIC REVENUES ANALYSIS (1)
                               ($ in millions)

                                               Fiscal 2013
                               -------------------------------------------
                                  Q1       Q2       Q3       Q4     TOTAL
                               -------  -------  -------  -------  -------

AMERICAS

  New software licenses and
   cloud software
   subscriptions               $   814  $ 1,253  $ 1,205  $ 2,194  $ 5,465
                               =======  =======  =======  =======  =======
  Hardware systems products    $   380  $   370  $   307  $   439  $ 1,495
                               =======  =======  =======  =======  =======

AS REPORTED GROWTH RATES
  New software licenses and
   cloud software
   subscriptions                    12%      22%      (2%)      3%       7%
  Hardware systems products        (20%)    (25%)    (25%)    (12%)    (20%)

CONSTANT CURRENCY GROWTH RATES
 (2)
  New software licenses and
   cloud software
   subscriptions                    14%      22%      (1%)      4%       8%
  Hardware systems products        (19%)    (25%)    (25%)    (12%)    (20%)

                               -------  -------  -------  -------  -------

EUROPE / MIDDLE EAST / AFRICA

  New software licenses and
   cloud software
   subscriptions               $   403  $   641  $   690  $ 1,224  $ 2,959
                               =======  =======  =======  =======  =======
  Hardware systems products    $   214  $   198  $   201  $   228  $   842
                               =======  =======  =======  =======  =======

AS REPORTED GROWTH RATES
  New software licenses and
   cloud software
   subscriptions                    (8%)     10%       0%       5%       3%
  Hardware systems products        (38%)    (27%)    (24%)    (12%)    (26%)

CONSTANT CURRENCY GROWTH RATES
 (2)
  New software licenses and
   cloud software
   subscriptions                     1%      12%       1%       5%       5%
  Hardware systems products        (30%)    (25%)    (24%)    (11%)    (23%)

                               -------  -------  -------  -------  -------

ASIA PACIFIC

  New software licenses and
   cloud software
   subscriptions               $   357  $   495  $   437  $   608  $ 1,897
                               =======  =======  =======  =======  =======
  Hardware systems products    $   185  $   166  $   163  $   182  $   696
                               =======  =======  =======  =======  =======

AS REPORTED GROWTH RATES
  New software licenses and
   cloud software
   subscriptions                     8%      13%      (3%)    (12%)     (1%)
  Hardware systems products        (12%)    (10%)    (16%)    (17%)    (14%)

CONSTANT CURRENCY GROWTH RATES
 (2)
  New software licenses and
   cloud software
   subscriptions                    12%      13%       1%      (7%)      3%
  Hardware systems products        (10%)    (12%)    (14%)    (14%)    (12%)

                               -------  -------  -------  -------  -------

TOTAL COMPANY

  New software licenses and
   cloud software
   subscriptions               $ 1,574  $ 2,389  $ 2,332  $ 4,026  $10,321
                               =======  =======  =======  =======  =======
  Hardware systems products    $   779  $   734  $   671  $   849  $ 3,033
                               =======  =======  =======  =======  =======

AS REPORTED GROWTH RATES
  New software licenses and
   cloud software
   subscriptions                     5%      17%      (2%)      1%       4%
  Hardware systems products        (24%)    (23%)    (23%)    (13%)    (21%)

CONSTANT CURRENCY GROWTH RATES
 (2)
  New software licenses and
   cloud software
   subscriptions                    10%      18%       0%       2%       6%
  Hardware systems products        (21%)    (23%)    (22%)    (12%)    (19%)



                                               Fiscal 2014
                               -------------------------------------------
                                  Q1       Q2       Q3       Q4     TOTAL
                               -------  -------  -------  -------  -------

AMERICAS

  New software licenses and
   cloud software
   subscriptions               $   926                             $   926
                               =======  =======  =======  =======  =======
  Hardware systems products    $   335                             $   335
                               =======  =======  =======  =======  =======

AS REPORTED GROWTH RATES
  New software licenses and
   cloud software
   subscriptions                    14%                                 14%
  Hardware systems products        (12%)                               (12%)

CONSTANT CURRENCY GROWTH RATES
 (2)
  New software licenses and
   cloud software
   subscriptions                    15%                                 15%
  Hardware systems products        (11%)                               (11%)

                               -------  -------  -------  -------  -------

EUROPE / MIDDLE EAST / AFRICA

  New software licenses and
   cloud software
   subscriptions               $   388                             $   388
                               =======  =======  =======  =======  =======
  Hardware systems products    $   177                             $   177
                               =======  =======  =======  =======  =======

AS REPORTED GROWTH RATES
  New software licenses and
   cloud software
   subscriptions                    (4%)                                (4%)
  Hardware systems products        (18%)                               (18%)

CONSTANT CURRENCY GROWTH RATES
 (2)
  New software licenses and
   cloud software
   subscriptions                    (5%)                                (5%)
  Hardware systems products        (20%)                               (20%)

                               -------  -------  -------  -------  -------

ASIA PACIFIC

  New software licenses and
   cloud software
   subscriptions               $   339                             $   339
                               =======  =======  =======  =======  =======
  Hardware systems products    $   157                             $   157
                               =======  =======  =======  =======  =======

AS REPORTED GROWTH RATES
  New software licenses and
   cloud software
   subscriptions                    (5%)                                (5%)
  Hardware systems products        (15%)                               (15%)

CONSTANT CURRENCY GROWTH RATES
 (2)
  New software licenses and
   cloud software
   subscriptions                     5%                                  5%
  Hardware systems products        (10%)                               (10%)

                               -------  -------  -------  -------  -------

TOTAL COMPANY

  New software licenses and
   cloud software
   subscriptions               $ 1,653                             $ 1,653
                               =======  =======  =======  =======  =======
  Hardware systems products    $   669                             $   669
                               =======  =======  =======  =======  =======

AS REPORTED GROWTH RATES
  New software licenses and
   cloud software
   subscriptions                     5%                                  5%
  Hardware systems products        (14%)                               (14%)

CONSTANT CURRENCY GROWTH RATES
 (2)
  New software licenses and
   cloud software
   subscriptions                     7%                                  7%
  Hardware systems products        (13%)                               (13%)

(1) The sum of the quarterly financial information may vary from year-to-
    date financial information due to rounding.

(2) We compare the percent change in the results from one period to another
    period using constant currency disclosure. We present constant currency
    information to provide a framework for assessing how our underlying
    businesses performed excluding the effect of foreign currency rate
    fluctuations. To present this information, current and comparative prior
    period results for entities reporting in currencies other than United
    States dollars are converted into United States dollars at the exchange
    rates in effect on May 31, 2013 and 2012 for the fiscal 2014 and fiscal
    2013 constant currency growth rate calculations presented, respectively,
    rather than the actual exchange rates in effect during the respective
    periods.



                                                                  APPENDIX A
                             ORACLE CORPORATION
                      Q1 FISCAL 2014 FINANCIAL RESULTS
                      EXPLANATION OF NON-GAAP MEASURES

To supplement our financial results presented on a GAAP basis, we use the non-GAAP measures indicated in the tables, which exclude certain business combination accounting entries and expenses related to acquisitions, as well as other significant expenses including stock-based compensation, that we believe are helpful in understanding our past financial performance and our future results. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Our management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Compensation of our executives is based in part on the performance of our business based on these non-GAAP measures. Our non-GAAP financial measures reflect adjustments based on the following items, as well as the related income tax effects:

  • New software licenses and cloud software subscriptions, software license updates and product support and hardware systems support deferred revenues: Business combination accounting rules require us to account for the fair values of cloud software subscriptions contracts, software license updates and product support contracts and hardware systems support contracts assumed in connection with our acquisitions. Because these contracts are generally one year in duration, our GAAP revenues generally for the one year period subsequent to our acquisition of a business do not reflect the full amount of revenues on these assumed cloud software subscriptions contracts and support contracts that would have otherwise been recorded by the acquired entity. The non-GAAP adjustment to our new software licenses and cloud software subscriptions revenues, software license updates and product support revenues and hardware systems support revenues is intended to include, and thus reflect, the full amount of such revenues. We believe the adjustment to these revenues is useful to investors as a measure of the ongoing performance of our business. We have historically experienced high renewal rates on our software license updates and product support contracts and our objective is to increase the renewal rates on acquired and new cloud software subscriptions and hardware systems support contracts; however, we cannot be certain that our customers will renew our cloud software subscriptions contracts, software license updates and product support contracts or our hardware systems support contracts.

  • Stock-based compensation expenses: We have excluded the effect of stock-based compensation expenses from our non-GAAP operating expenses and net income measures. Although stock-based compensation is a key incentive offered to our employees, and we believe such compensation contributed to the revenues earned during the periods presented and also believe it will contribute to the generation of future period revenues, we continue to evaluate our business performance excluding stock-based compensation expenses. Stock-based compensation expenses will recur in future periods.

  • Amortization of intangible assets: We have excluded the effect of amortization of intangible assets from our non-GAAP operating expenses and net income measures. Amortization of intangible assets is inconsistent in amount and frequency and is significantly affected by the timing and size of our acquisitions. Investors should note that the use of intangible assets contributed to our revenues earned during the periods presented and will contribute to our future period revenues as well. Amortization of intangible assets will recur in future periods.

  • Acquisition related and other expenses; and restructuring expenses: We have excluded the effect of acquisition related and other expenses and the effect of restructuring expenses from our non-GAAP operating expenses and net income measures. We incurred significant expenses in connection with our acquisitions and also incurred certain other operating expenses or income, which we generally would not have otherwise incurred in the periods presented as a part of our continuing operations. Acquisition related and other expenses consist of personnel related costs for transitional employees, other acquired employee related costs, stock-based compensation expenses (in addition to the stock-based compensation expenses described above), integration related professional services, certain business combination adjustments including adjustments after the measurement period has ended and certain other operating items, net. Substantially all of the stock-based compensation expenses included in acquisition related and other expenses resulted from unvested options assumed in acquisitions whose vesting was fully accelerated upon termination of the employees pursuant to the original terms of those options. Restructuring expenses consist of employee severance and other exit costs. We believe it is useful for investors to understand the effects of these items on our total operating expenses. Although acquisition related expenses and restructuring expenses generally diminish over time with respect to past acquisitions, we generally will incur these expenses in connection with any future acquisitions.

Contact:
Ken Bond
Oracle Investor Relations
1.650.607.0349
Email Contact

Deborah Hellinger
Oracle Corporate Communications
1.212.508.7935
Email Contact

Source: Oracle Corporation

Receive E-mail Alerts

E-mail Address *
Mailing Lists *



 
Enter the code shown above.