SOURCE: Oracle Corporation

Oracle Corporation

March 25, 2010 16:04 ET

Oracle Reports GAAP EPS of $0.23, Non-GAAP EPS of $0.38

New Software Licenses Up 13%, Applications New Licenses Up 21%

REDWOOD SHORES, CA--(Marketwire - March 25, 2010) - Oracle Corporation (NASDAQ: ORCL) today announced fiscal 2010 Q3 GAAP total revenues were up 17% to $6.4 billion, while non-GAAP total revenues were up 18% to $6.5 billion. Excluding the impact of Sun Microsystems, Inc., which Oracle acquired on January 26, 2010, GAAP total revenue grew 7%. GAAP new software license revenues were up 13% to $1.7 billion, and up 10% to $1.7 billion excluding Sun. GAAP software license updates and product support revenues were up 13% to $3.3 billion, while non-GAAP software license updates and product support revenues were up 12% to $3.3 billion. GAAP operating income was down 5% to $1.8 billion, and GAAP operating margin was 29%. Non-GAAP operating income was up 13% to $2.9 billion, and non-GAAP operating margin was 45%. GAAP net income was down 10% to $1.2 billion, while non-GAAP net income was up 9% to $1.9 billion. GAAP earnings per share were $0.23, down 11% compared to last year while non-GAAP earnings per share were up 9% to $0.38. GAAP operating cash flow on a trailing twelve-month basis was $8.2 billion.

"Our solid top line growth, coupled with disciplined expense management, was key in generating $8.0 billion of free cash flow over the last twelve months," said Oracle CFO Jeff Epstein.

"The Sun integration is going even better than we expected," said Oracle President, Safra Catz. "We believe that Sun will make a significant contribution to our fourth quarter earnings per share as well as meet the profitability goals we set for next year."

"Exadata is the fastest growing product in Oracle's history," said Oracle President, Charles Phillips. "Introduced a little over a year ago, the Exadata pipeline is now approaching $400 million with Q4 bookings forecast at nearly $100 million. This strengthens both sales growth and profitability in our Sun server and storage businesses."

"Every quarter we grab huge chunks of market share from SAP," said Oracle CEO, Larry Ellison. "SAP's most recent quarter was the best quarter of their year, only down 15%, while Oracle's application sales were up 21%. But SAP is well ahead of us in the number of CEOs for this year, announcing their third and fourth, while we only had one."

In addition, Oracle's Board of Directors declared a cash dividend of $0.05 per share of outstanding common stock to be paid to stockholders of record as of the close of business on April 14, 2010, with a payment date of May 5, 2010. Future declarations of quarterly dividends and the establishment of future record and payment dates are subject to the final determination of Oracle's Board of Directors.

Q3 Earnings Conference Call and Webcast
Oracle will hold a conference call and web broadcast today to discuss these results at 2:00 p.m. Pacific. You may listen to the call by dialing (800) 214-0694 or (719) 955-1425, Passcode: 567035. To access the live web broadcast of this event, please visit the Oracle Investor Relations website at http://www.oracle.com/investor.

About Oracle
Oracle (NASDAQ: ORCL) is the world's most complete, open, and integrated business software and hardware systems company. For more information about Oracle, please visit our website at http://www.oracle.com or call Investor Relations at (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 or its Board of Directors' future plans, expectations, beliefs, intentions and prospects 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 recent global economic and financial crisis, could adversely affect our business, operating results or financial condition, including our revenue growth and profitability, through reductions in customer IT budgets and expenditures and through the general tightening of access to credit. (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 software license updates and product support. (3) Our entrance into the hardware systems business may not be successful, and we may fail to achieve our financial forecasts with respect to this new business. (4) We have an active acquisition program and our acquisitions, including our acquisition of Sun Microsystems, 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 and risks relating to compliance with international and U.S. laws that apply to our international operations. (6) Intense competitive forces demand rapid technological advances and frequent new product introductions and could require us to reduce prices or cause us to lose customers. (7) We cannot assure market acceptance of new products or services or new versions of existing or acquired products or services. 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 March 25, 2010. Oracle undertakes no duty to update any statement in light of new information or future events.


                            ORACLE CORPORATION

                     Q3 FISCAL 2010 FINANCIAL RESULTS
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                  ($ in millions, except per share data)


                  Three Months Ended February 28,        %      % Increase
              --------------------------------------  Increase  (Decrease)
                          % of                % of   (Decrease) in Constant
                2010    Revenues    2009    Revenues  in US $  Currency (1)
              --------  --------  --------  --------  --------  ----------

REVENUES
  New software
   licenses   $  1,718     27%    $  1,516     28%       13%         8%
  Software
   license
   updates
   and product
   support       3,297     51%       2,917     53%       13%         8%
              --------  --------  --------  --------
    Software
     Revenues    5,015     78%       4,433     81%       13%         8%
              --------  --------  --------  --------
  Hardware
   systems
   products        273      4%           -      0%        *          *
  Hardware
   systems
   support         185      3%           -      0%        *          *
              --------  --------  --------  --------
    Hardware
     Systems
     Revenues      458      7%           -      0%        *          *
              --------  --------  --------  --------
  Services         931     15%       1,020     19%       (9%)      (13%)
              --------  --------  --------  --------
       Total
        Reven-
        ues      6,404    100%       5,453    100%       17%        12%
              --------  --------  --------  --------

OPERATING
 EXPENSES
  Sales and
   marketing     1,241     19%       1,054     19%       18%        13%
  Software
   license
   updates
   and product
   support         281      4%         256      5%       10%         5%
  Hardware
   systems
   products        206      3%           -      0%        *          *
  Hardware
   systems
   support         116      2%           -      0%        *          *
  Services         816     13%         855     16%       (5%)       (9%)
  Research and
   development     823     13%         677     12%       22%        20%
  General and
   adminis-
   trative         236      4%         192      4%       23%        20%
  Amortization
   of intangible
   assets          502      8%         437      8%       15%        15%
  Acquisition
   related and
   other            34      0%          27      0%       28%        28%
  Restruc-
   turing          306      5%          15      0%    1,968%     1,867%
              --------  --------  --------  --------
       Total
        Oper-
        ating
        Expen-
        ses      4,561     71%       3,513     64%       30%        26%
              --------  --------  --------  --------

OPERATING
 INCOME          1,843     29%       1,940     36%       (5%)      (12%)
  Interest
   expense        (186)    (3%)       (154)    (3%)      20%        20%
  Non-oper-
   ating
   income
   (expense),
   net             (75)    (1%)         24      0%     (413%)     (367%)
              --------  --------  --------  --------

INCOME BEFORE
 PROVISION
 FOR INCOME
 TAXES           1,582     25%       1,810     33%      (13%)      (20%)
              --------  --------  --------  --------
  Provision
   for income
   taxes           393      6%         481      9%      (18%)      (25%)
              --------  --------  --------  --------

NET INCOME    $  1,189     19%    $  1,329     24%      (10%)      (18%)
              ========  ========  ========  ========

EARNINGS PER
 SHARE:
  Basic       $   0.24            $   0.27
  Diluted     $   0.23            $   0.26
WEIGHTED AVERAGE
 COMMON SHARES
 OUTSTANDING:
  Basic          5,015               5,005
  Diluted        5,076               5,056


(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 rate in effect on May 31, 2009, which was the last day of our
    prior fiscal year, rather than the actual exchange rates in effect
    during the respective periods. The United States dollar weakened
    relative to most major international currencies in the three months
    ended February 28, 2010 compared with the corresponding prior year
    period, increasing revenues by 5 percentage points, operating expenses
    by 4 percentage points and operating income by 7 percentage points.

  * Not meaningful



                            ORACLE CORPORATION

                     Q3 FISCAL 2010 FINANCIAL RESULTS
       RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1)
                   ($ in millions, except per share data)

                             Three Months Ended February 28,
                ----------------------------------------------------------
                  2010                2010      2009                2009
                  GAAP      Adj.    Non-GAAP    GAAP      Adj.    Non-GAAP
                --------  --------  --------  --------  --------  --------

TOTAL REVENUES
 (3) (4)        $  6,404  $     65  $  6,469  $  5,453  $     51  $  5,504

TOTAL SOFTWARE
 REVENUES (3)   $  5,015  $     26  $  5,041  $  4,433  $     51  $  4,484
  New software
   licenses        1,718         -     1,718     1,516         -     1,516
  Software
   license
   updates and
   product
   support (3)     3,297        26     3,323     2,917        51     2,968

TOTAL HARDWARE
 SYSTEMS
 REVENUES (4)   $    458  $     39  $    497  $      -  $      -  $      -
  Hardware
   systems
   products          273         -       273         -         -         -
  Hardware
   systems
   support (4)       185        39       224         -         -         -

TOTAL OPERATING
 EXPENSES       $  4,561  $   (978) $  3,583  $  3,513  $   (564) $  2,949
  Hardware
   systems
   products          206       (24)      182         -         -         -
  Stock-based
   compensation
   (5)               112      (112)        -        85       (85)        -
  Amortization
   of intangible
   assets (6)        502      (502)        -       437      (437)        -
  Acquisition
   related and
   other              34       (34)        -        27       (27)        -
  Restructuring      306      (306)        -        15       (15)        -

OPERATING
 INCOME         $  1,843  $  1,043  $  2,886  $  1,940  $    615  $  2,555

OPERATING
 MARGIN %             29%                 45%       36%                 46%

INCOME TAX
 EFFECTS (7)    $    393  $    287  $    680  $    481  $    164  $    645

NET INCOME      $  1,189  $    756  $  1,945  $  1,329  $    451  $  1,780

DILUTED
 EARNINGS PER
 SHARE          $   0.23            $   0.38  $   0.26            $   0.35

DILUTED
 WEIGHTED
 AVERAGE
 COMMON
 SHARES
 OUTSTANDING       5,076         -     5,076     5,056         -     5,056




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

TOTAL REVENUES
 (3) (4)           17%       18%       12%       12%

TOTAL SOFTWARE
 REVENUES (3)      13%       12%        8%        7%
  New software
   licenses        13%       13%        8%        8%
  Software
   license
   updates and
   product
   support (3)     13%       12%        8%        7%

TOTAL HARDWARE
 SYSTEMS
 REVENUES (4)       *         *         *         *
  Hardware
   systems
   products         *         *         *         *
  Hardware
   systems
   support(4)       *         *         *         *

TOTAL OPERATING
 EXPENSES          30%       21%       26%       17%
  Hardware
   systems
   products         *         *         *         *
  Stock-based
   compensation
   (5)             33%        *        33%        *
  Amortization
   of intangible
   assets (6)      15%        *        15%        *
  Acquisition
   related and
   other           28%        *        28%        *
  Restructuring 1,968%        *     1,867%        *

OPERATING
 INCOME            (5%)      13%      (12%)       7%

OPERATING
 MARGIN %      (680) bp  (180) bp  (779) bp  (224) bp

INCOME TAX
 EFFECTS (7)      (18%)       5%      (25%)      (1%)

NET INCOME        (10%)       9%      (18%)       3%

DILUTED
 EARNINGS PER
 SHARE            (11%)       9%      (18%)       2%

DILUTED
 WEIGHTED
 AVERAGE
 COMMON
 SHARES
 OUTSTANDING        0%        0%        0%        0%


(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 rate in effect on May 31, 2009, 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 February 28, 2010, approximately $35 million, $60 million and
    $25 million in estimated revenues related to assumed software support
    contracts will not be recognized for the remainder of fiscal 2010,
    fiscal 2011 and fiscal 2012, respectively, due to business combination
    accounting rules.

(4) As of February 28, 2010, approximately $89 million, $148 million,
    $35 million and $11 million in estimated revenues related to hardware
    systems support contracts will not be recognized for the remainder of
    fiscal 2010, fiscal 2011, fiscal 2012 and fiscal 2013, respectively,
    due to business combination accounting rules.

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


                      Three Months Ended            Three Months Ended
                      February 28, 2010             February 28, 2009
                ----------------------------- -----------------------------
                  GAAP      Adj.    Non-GAAP    GAAP      Adj.    Non-GAAP
                --------- --------  --------- --------- --------  ---------
  Sales and
   marketing    $      21 $    (21) $       - $      16 $    (16) $       -
  Software
   license
   updates
   and product
   support              4       (4)         -         3       (3)         -
  Hardware
   systems
   products             2       (2)         -         -        -          -
  Hardware
   systems
   support              1       (1)         -         -        -          -
  Services              4       (4)         -         3       (3)         -
  Research
   and
   development         46      (46)         -        39      (39)         -
  General and
   administrative      34      (34)         -        24      (24)         -
                --------- --------  --------- --------- --------  ---------
    Subtotal          112     (112)         -        85      (85)         -
                --------- --------  --------- --------- --------  ---------
  Acquisition
   related and
   other               10      (10)         -         3       (3)         -
                --------- --------  --------- --------- --------  ---------
    Total
     stock-based
     compensa-
     tion       $     122 $   (122) $       - $      88 $    (88) $       -
                ========= ========  ========= ========= ========  =========


(6) Estimated future annual amortization expense related to intangible
    assets as of February 28, 2010 is as follows:

  Remainder of
   Fiscal 2010  $     609
   Fiscal 2011      2,259
   Fiscal 2012      1,988
   Fiscal 2013      1,620
   Fiscal 2014      1,340
   Fiscal 2015      1,006
   Thereafter         631
                ---------
    Total
     intangible
     assets
     subject to
     amortization   9,453
  In-process
   research and
   development        415
                ---------
    Total       $   9,868
                =========


(7) Income tax effects were calculated reflecting an effective GAAP tax
    rate of 24.8% and 26.6% in the third quarter of fiscal 2010 and 2009,
    respectively, and an effective non-GAAP tax rate of 25.9% and 26.6% in
    the third quarter of fiscal 2010 and 2009, respectively. The
    differences between our GAAP and non-GAAP tax rates in the third
    quarter of fiscal 2010 were due to differences in jurisdictional tax
    rates and the related tax benefits attributable to our restructuring
    expenses in this period.

  * Not meaningful



                            ORACLE CORPORATION

              Q3 FISCAL 2010 YEAR TO DATE FINANCIAL RESULTS
             CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                 ($ in millions, except per share data)


                  Nine Months Ended February 28,         %      % Increase
              --------------------------------------  Increase  (Decrease)
                          % of                % of   (Decrease) in Constant
                2010    Revenues    2009    Revenues  in US $  Currency (1)
              --------  --------  --------  --------  --------  ----------

REVENUES
  New software
   licenses   $  4,399     25%    $  4,379     27%        0%       (3%)
  Software
   license
   updates
   and product
   support       9,661     56%       8,702     53%       11%       10%
              --------  --------  --------  --------
    Software
     Revenues   14,060     81%      13,081     80%        7%        5%
              --------  --------  --------  --------
  Hardware
   systems
   products        273      2%           -      0%        *         *
  Hardware
   systems
   support         185      1%           -      0%        *         *
              --------  --------  --------  --------
    Hardware
     Systems
     Revenues      458      3%           -      0%        *         *
              --------  --------  --------  --------
  Services       2,797     16%       3,310     20%      (15%)     (17%)
              --------  --------  --------  --------
      Total
       Reve-
       nues     17,315    100%      16,391    100%        6%        4%
              --------  --------  --------  --------

OPERATING
 EXPENSES
  Sales and
   marketing     3,335     19%       3,312     20%        1%       (1%)
  Software
   license
   updates and
   product
   support         771      5%         795      5%       (3%)      (4%)
  Hardware
   systems
   products        206      1%           -      0%        *         *
  Hardware
   systems
   support         116      1%           -      0%        *         *
  Services       2,429     14%       2,820     17%      (14%)     (15%)
  Research
   and
   development   2,191     12%       2,037     12%        8%        8%
  General and
   admini-
   strative        619      4%         571      4%        8%        8%
  Amortization
   of intangible
   assets        1,369      8%       1,276      8%        7%        7%
  Acquisition
   related
   and other        50      0%          98      1%      (48%)     (46%)
  Restructuring    467      3%          46      0%      926%      906%
              --------  --------  --------  --------
      Total
       Oper-
       ating
       Expen-
       ses      11,553     67%      10,955     67%        5%        5%
              --------  --------  --------  --------

OPERATING
 INCOME          5,762     33%       5,436     33%        6%        2%
  Interest
   expense        (553)    (3%)       (471)    (3%)      17%       17%
  Non-operating
   income
   (expense),
   net             (41)     0%         114      1%     (136%)    (136%)
              --------  --------  --------  --------

INCOME BEFORE
 PROVISION FOR
 INCOME TAXES    5,168     30%       5,079     31%        2%       (3%)
              --------  --------  --------  --------
  Provision
   for income
   taxes         1,396      8%       1,377      8%        1%       (3%)
              --------  --------  --------  --------

NET INCOME    $  3,772     22%    $  3,702     23%        2%       (3%)
              ========  ========  ========  ========

EARNINGS PER
 SHARE:
  Basic       $   0.75            $   0.73
  Diluted     $   0.74            $   0.72
WEIGHTED AVERAGE
 COMMON SHARES
 OUTSTANDING:
  Basic          5,012               5,095
  Diluted        5,067               5,159


(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 rate in effect on May 31, 2009, which was the last day of our
    prior fiscal year, rather than the actual exchange rates in effect
    during the respective periods. The United States dollar slightly
    weakened relative to most major international currencies in the nine
    months ended February 28, 2010 compared with the corresponding prior
    year period, increasing revenues by 2 percentage points and operating
    income by 4 percentage points.

  * Not meaningful



                            ORACLE CORPORATION

               Q3 FISCAL 2010 YEAR TO DATE FINANCIAL RESULTS
      RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1)
                   ($ in millions, except per share data)

                             Nine Months Ended February 28,
                ----------------------------------------------------------
                  2010                2010      2009                2009
                  GAAP      Adj.    Non-GAAP    GAAP      Adj.    Non-GAAP
                --------  --------  --------  --------  --------  --------

TOTAL REVENUES
 (3) (4)        $ 17,315  $     88  $ 17,403  $ 16,391  $    222  $ 16,613

TOTAL SOFTWARE
 REVENUES (3)   $ 14,060  $     49  $ 14,109  $ 13,081  $    222  $ 13,303
  New software
   licenses        4,399         -     4,399     4,379         -     4,379
  Software
   license
   updates and
   product
   support (3)     9,661        49     9,710     8,702       222     8,924

TOTAL HARDWARE
 SYSTEMS
 REVENUES (4)   $    458  $     39  $    497  $      -  $      -  $      -
  Hardware
   systems
   products          273         -       273         -         -         -
  Hardware
   systems
   support (4)       185        39       224         -         -         -

TOTAL OPERATING
 EXPENSES       $ 11,553  $ (2,210) $  9,343  $ 10,955  $ (1,680) $  9,275
  Hardware
   systems
   products          206       (24)      182         -         -         -
  Stock-based
   compensation
   (5)               300      (300)        -       260      (260)        -
  Amortization
   of intangible
   assets (6)      1,369    (1,369)        -     1,276    (1,276)        -
  Acquisition
   related and
   other              50       (50)        -        98       (98)        -
  Restructuring      467      (467)        -        46       (46)        -

OPERATING
 INCOME         $  5,762  $  2,298  $  8,060  $  5,436  $  1,902  $  7,338

OPERATING
 MARGIN %             33%                 46%       33%                 44%

INCOME TAX
 EFFECTS (7)    $  1,396  $    624  $  2,020  $  1,377  $    535  $  1,912

NET INCOME      $  3,772  $  1,674  $  5,446  $  3,702  $  1,367  $  5,069

DILUTED
 EARNINGS PER
 SHARE          $   0.74            $   1.07  $   0.72            $   0.98

DILUTED
 WEIGHTED AVERAGE
 COMMON SHARES
 OUTSTANDING       5,067         -     5,067     5,159         -     5,159




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

TOTAL REVENUES
 (3) (4)           6%        5%        4%        3%

TOTAL SOFTWARE
 REVENUES (3)      7%        6%        5%        4%
  New software
   licenses        0%        0%       (3%)      (3%)
  Software
   license
   updates and
   product
   support (3)    11%        9%       10%        7%

TOTAL HARDWARE
 SYSTEMS
 REVENUES (4)      *         *         *         *
  Hardware
   systems
   products        *         *         *         *
  Hardware
   systems
   support (4)     *         *         *         *

TOTAL OPERATING
 EXPENSES          5%        1%        5%        0%
  Hardware
   systems
   products        *         *         *         *
  Stock-based
   compensation
   (5)            15%        *        15%        *
  Amortization
   of intangible
   assets (6)      7%        *         7%        *
  Acquisition
   related and
   other         (48%)       *       (46%)       *
  Restructuring  926%        *       906%        *

OPERATING
 INCOME            6%       10%        2%        7%

OPERATING
 MARGIN %         11 bp    214 bp   (63) bp    163 bp

INCOME TAX
 EFFECTS (7)       1%        6%       (3%)       2%

NET INCOME         2%        7%       (3%)       4%

DILUTED
 EARNINGS
 PER SHARE         4%        9%       (1%)       6%

 DILUTED
  WEIGHTED
  AVERAGE
  COMMON
  SHARES
  OUTSTANDING      (2%)      (2%)     (2%)      (2%)


(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 rate in effect on May 31, 2009, 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 February 28, 2010, approximately $35 million, $60 million and
    $25 million in estimated revenues related to assumed software support
    contracts will not be recognized for the remainder of fiscal 2010,
    fiscal 2011 and fiscal 2012, respectively, due to business combination
    accounting rules.

(4) As of February 28, 2010, approximately $89 million, $148 million,
    $35 million and $11 million in estimated revenues related to hardware
    systems support contracts will not be recognized for the remainder of
    fiscal 2010, fiscal 2011, fiscal 2012 and fiscal 2013, respectively,
    due to business combination accounting rules.

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


                      Nine Months Ended             Nine Months Ended
                      February 28, 2010             February 28, 2009
                ----------------------------- -----------------------------
                  GAAP      Adj.    Non-GAAP    GAAP      Adj.    Non-GAAP
                --------- --------  --------- --------- --------  ---------
  Sales and
   marketing    $      57 $    (57) $       - $      51 $    (51) $       -
  Software
   license
   updates and
   product
   support             12      (12)         -        10      (10)         -
  Hardware
   systems
   products             2       (2)         -         -        -          -
  Hardware
   systems
   support              1       (1)         -         -        -          -
  Services             10      (10)         -         9       (9)         -
  Research and
   development        122     (122)         -       121     (121)         -
  General and
   administrative      96      (96)         -        69      (69)         -
                --------- --------  --------- --------- --------  ---------
    Subtotal          300     (300)         -       260     (260)         -
                --------- --------  --------- --------- --------  ---------
  Acquisition
   related and
   other               10      (10)         -        14      (14)         -
                --------- --------  --------- --------- --------  ---------
    Total
     stock-based
     compensa-
     tion       $     310 $   (310) $       - $     274 $   (274) $       -
                ========= ========  ========= ========= ========  =========


(6) Estimated future annual amortization expense related to intangible
    assets as of February 28, 2010 is as follows:

  Remainder of
   Fiscal 2010  $     609
   Fiscal 2011      2,259
   Fiscal 2012      1,988
   Fiscal 2013      1,620
   Fiscal 2014      1,340
   Fiscal 2015      1,006
   Thereafter         631
                ---------
    Total
     intangible
     assets
     subject to
     amortization   9,453
  In-process
   research
   and development    415
                ---------
       Total    $   9,868
                =========


(7) Income tax effects were calculated reflecting an effective GAAP tax
    rate of 27.0% and 27.1% in the first nine months of fiscal 2010 and
    2009, respectively, and an effective non-GAAP tax rate of 27.1% and
    27.4% in the first nine months of fiscal 2010 and 2009, respectively.
    The differences between our GAAP and non-GAAP tax rates in the first
    nine months of fiscal 2010 were due to differences in jurisdictional
    tax rates and the related tax benefits attributable to our
    restructuring expenses in this period. In addition, our non-GAAP tax
    rate in the first nine months of fiscal 2009 excludes the effect of an
    adjustment to our non-current deferred tax liability associated with
    acquired intangible assets.

  * Not meaningful




                            ORACLE CORPORATION

                     Q3 FISCAL 2010 FINANCIAL RESULTS
                  CONDENSED CONSOLIDATED BALANCE SHEETS
                             ($ in millions)


                                                   February 28,   May 31,
                                                      2010         2009
                                                   -----------  -----------
ASSETS
  Current Assets:
    Cash and cash equivalents                      $     9,331  $     8,995
    Marketable securities                                8,158        3,629
    Trade receivables, net                               3,898        4,430
    Inventories, net                                       315            -
    Deferred tax assets                                    978          661
    Prepaid expenses and other current assets            1,299          866
                                                   -----------  -----------
      Total Current Assets                              23,979       18,581
  Non-Current Assets:
    Property, plant and equipment, net                   2,869        1,922
    Intangible assets, net                               9,868        7,269
    Goodwill                                            20,415       18,842
    Other assets                                         2,255          802
                                                   -----------  -----------
      Total Non-Current Assets                          35,407       28,835
                                                   -----------  -----------
TOTAL ASSETS                                       $    59,386  $    47,416
                                                   ===========  ===========
LIABILITIES AND EQUITY
  Current Liabilities:
    Notes payable, current and other current
     borrowings                                    $     4,220  $     1,001
    Accounts payable                                       616          271
    Accrued compensation and related benefits            1,452        1,409
    Deferred revenues                                    5,389        4,592
    Other current liabilities                            2,574        1,876
                                                   -----------  -----------
      Total Current Liabilities                         14,251        9,149
  Non-Current Liabilities:
    Notes payable and other non-current borrowings      11,498        9,237
    Income taxes payable                                 3,275        2,423
    Deferred tax liabilities                               339          480
    Other non-current liabilities                        1,172          682
                                                   -----------  -----------
      Total Non-Current Liabilities                     16,284       12,822
  Equity                                                28,851       25,445
                                                   -----------  -----------
TOTAL LIABILITIES AND EQUITY                       $    59,386  $    47,416
                                                   ===========  ===========




                           ORACLE  CORPORATION

                     Q3 FISCAL 2010 FINANCIAL RESULTS
              CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                             ($ in millions)

                                                       Nine Months Ended
                                                          February 28,
                                                    ----------------------
                                                       2010        2009
                                                    ----------  ----------
Cash Flows From Operating Activities:
  Net income                                        $    3,772  $    3,702
  Adjustments to reconcile net income to net cash
   provided by operating activities:
    Depreciation                                           196         198
    Amortization of intangible assets                    1,369       1,276
    Deferred income taxes                                 (362)       (302)
    Stock-based compensation                               310         274
    Tax benefits on the exercise of stock options
     and vesting of restricted stock-based awards          117         141
    Excess tax benefits on the exercise of stock
     options and vesting of restricted stock-based
     awards                                                (71)        (92)
    Other, net                                              79          68
    Changes in operating assets and liabilities, net
     of effects from acquisitions:
       Decrease in trade receivables, net                1,614       1,848
       Decrease in inventories, net                         18           -
       Decrease in prepaid expenses and other assets       375         336
       Decrease in accounts payable and other
        liabilities                                       (842)     (1,097)
       Decrease in income taxes payable                   (269)        (51)
       Decrease in deferred revenues                      (136)        (54)
                                                    ----------  ----------
         Net cash provided by operating activities       6,170       6,247
                                                    ----------  ----------
Cash Flows From Investing Activities:
  Purchases of marketable securities and other
   investments                                         (11,162)     (6,906)
  Proceeds from maturities and sales of marketable
   securities and other investments                      7,121       6,397
  Acquisitions, net of cash acquired                    (5,567)     (1,165)
  Capital expenditures                                    (161)       (491)
                                                    ----------  ----------
         Net cash used for investing activities         (9,769)     (2,165)
                                                    ----------  ----------
Cash Flows From Financing Activities:
  Payments for repurchases of common stock                (738)     (3,704)
  Proceeds from issuances of common stock                  602         448
  Payment of dividends to stockholders                    (753)          -
  Proceeds from borrowings, net of issuance costs        6,420           -
  Repayments of borrowings                              (1,708)         (4)
  Excess tax benefits on the exercise of stock
   options and vesting of restricted stock-based
   awards                                                   71          92
  Distributions to noncontrolling interests                (59)        (53)
                                                    ----------  ----------
         Net cash provided by (used for) financing
          activities                                     3,835      (3,221)
                                                    ----------  ----------
Effect of exchange rate changes on cash and cash
 equivalents                                               100        (912)
                                                    ----------  ----------
Net increase (decrease) in cash and cash
 equivalents                                               336         (51)
                                                    ----------  ----------
Cash and cash equivalents at beginning of period         8,995       8,262
                                                    ----------  ----------
Cash and cash equivalents at end of period          $    9,331  $    8,211
                                                    ==========  ==========



                            ORACLE CORPORATION

                     Q3 FISCAL 2010 FINANCIAL RESULTS
                 FREE CASH FLOW - TRAILING 4-QUARTERS (1)
                              ($ in millions)


                      Fiscal 2009                     Fiscal 2010
             ------------------------------  ------------------------------
               Q1      Q2      Q3      Q4      Q1      Q2      Q3      Q4
             ------  ------  ------  ------  ------  ------  ------  ------

GAAP
 Operating
 Cash Flow   $7,941  $8,089  $8,542  $8,255  $8,753  $8,654  $8,178

Capital
 Expendi-
 tures (2)     (479)   (486)   (539)   (529)   (261)   (230)   (199)
             ------  ------  ------  ------  ------  ------  ------

Free Cash
 Flow        $7,462  $7,603  $8,003  $7,726  $8,492  $8,424  $7,979
             ======  ======  ======  ======  ======  ======  ======

% Growth over
 prior year      20%     15%     14%      8%     14%     11%      0%


GAAP Net
 Income      $5,758  $5,750  $5,739  $5,593  $5,640  $5,802  $5,663

Free Cash
 Flow as a
 % of Net
 Income         130%    132%    139%    138%    151%    145%    141%


(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) Represents capital expenditures as reported in cash flows from
    investing activities on our cash flow statements presented in
    accordance with GAAP.




                              ORACLE CORPORATION

                       Q3 FISCAL 2010 FINANCIAL RESULTS
            SUPPLEMENTAL ANALYSIS OF GAAP REVENUES AND HEADCOUNT (1)
                                ($ in millions)

                                           Fiscal 2009
                         ------------------------------------------------
                            Q1        Q2        Q3        Q4       TOTAL
                         --------  --------  --------  --------  --------
REVENUES
  New software licenses  $  1,237  $  1,626  $  1,516  $  2,744  $  7,123
  Software license updates
   and product support      2,935     2,850     2,917     3,052    11,754
                         --------  --------  --------  --------  --------
    Software Revenues       4,172     4,476     4,433     5,796    18,877

  Hardware systems
   products                     -         -         -         -         -
  Hardware systems support      -         -         -         -         -
                         --------  --------  --------  --------  --------
    Hardware Systems
     Revenues                   -         -         -         -         -

  Consulting                  865       842       758       782     3,247
  On Demand                   195       189       191       204       779
  Education                    99       100        71        79       349
                         --------  --------  --------  --------  --------
    Services Revenues       1,159     1,131     1,020     1,065     4,375

                         --------  --------  --------  --------  --------
       Total Revenues    $  5,331  $  5,607  $  5,453  $  6,861  $ 23,252
                         ========  ========  ========  ========  ========

AS REPORTED REVENUE
 GROWTH RATES
  New software licenses        14%       (3%)      (6%)     (13%)      (5%)
  Software license updates
   and product support         23%       14%       11%        8%       14%
    Software Revenues          20%        8%        5%       (3%)       6%

  Hardware systems
   products                     *         *         *         *         *
  Hardware systems support      *         *         *         *         *
    Hardware Systems
     Revenues                   *         *         *         *         *

  Consulting                    8%       (4%)     (10%)     (18%)      (7%)
  On Demand                    23%       13%       10%        5%       12%
  Education                    (2%)      (9%)     (23%)     (30%)     (16%)
    Services Revenues           9%       (2%)      (8%)     (16%)      (5%)

       Total Revenues          18%        6%        2%       (5%)       4%

CONSTANT CURRENCY GROWTH
 RATES (2)
  New software licenses        10%        5%        3%       (4%)       1%
  Software license updates
   and product support         18%       20%       20%       18%       19%
    Software Revenues          16%       14%       14%        6%       12%

  Hardware systems
   products                     *         *         *         *         *
  Hardware systems support      *         *         *         *         *
    Hardware Systems
     Revenues                   *         *         *         *         *

  Consulting                    5%        4%        0%      (10%)      (1%)
  On Demand                    19%       19%       19%       15%       18%
  Education                    (6%)      (3%)     (16%)     (23%)     (12%)
    Services Revenues           6%        5%        2%       (7%)       1%

       Total Revenues          14%       12%       11%        4%       10%


GEOGRAPHIC REVENUES

REVENUES
  Americas               $  2,687  $  2,904  $  2,846  $  3,463  $ 11,900
  Europe, Middle East &
   Africa                   1,830     1,881     1,824     2,413     7,948
  Asia Pacific                814       822       783       985     3,404
                         --------  --------  --------  --------  --------
       Total Revenues    $  5,331  $  5,607  $  5,453  $  6,861  $ 23,252
                         ========  ========  ========  ========  ========


HEADCOUNT

GEOGRAPHIC AREA
  Americas                 32,993    33,526    32,919    32,347
  Europe, Middle East &
   Africa                  17,096    17,184    17,348    17,129
  Asia Pacific             35,099    35,947    36,321    36,086
                         --------  --------  --------  --------  --------
       Total Company       85,188    86,657    86,588    85,562
                         ========  ========  ========  ========  ========



                                           Fiscal 2010
                         ------------------------------------------------
                            Q1        Q2        Q3        Q4       TOTAL
                         --------  --------  --------  --------  --------
REVENUES
  New software licenses  $  1,028  $  1,653  $  1,718            $  4,399
  Software license updates
   and product support      3,117     3,247     3,297               9,661
                         --------  --------  --------  --------  --------
    Software Revenues       4,145     4,900     5,015              14,060

  Hardware systems
   products                     -         -       273                 273
  Hardware systems support      -         -       185                 185
                         --------  --------  --------  --------  --------
    Hardware Systems
     Revenues                   -         -       458                 458

  Consulting                  663       692       651               2,006
  On Demand                   180       188       211                 579
  Education                    66        78        69                 212
                         --------  --------  --------  --------  --------
    Services Revenues         909       958       931               2,797

                         --------  --------  --------  --------  --------
       Total Revenues    $  5,054  $  5,858  $  6,404            $ 17,315
                         ========  ========  ========  ========  ========

AS REPORTED REVENUE
 GROWTH RATES
  New software licenses       (17%)       2%       13%                  0%
  Software license updates
   and product support          6%       14%       13%                 11%
    Software Revenues          (1%)       9%       13%                  7%

  Hardware systems
   products                     *         *         *                   *
  Hardware systems support      *         *         *                   *
    Hardware Systems
     Revenues                   *         *         *                   *

  Consulting                  (23%)     (18%)     (14%)               (19%)
  On Demand                    (8%)      (1%)      10%                  1%
  Education                   (34%)     (22%)      (4%)               (22%)
    Services Revenues         (22%)     (15%)      (9%)               (15%)

       Total Revenues          (5%)       4%       17%                  6%

CONSTANT CURRENCY GROWTH
 RATES (2)
  New software licenses       (14%)      (5%)       8%                 (3%)
  Software license updates
   and product support         11%        9%        8%                 10%
    Software Revenues           4%        4%        8%                  5%

  Hardware systems
   products                     *         *         *                   *
  Hardware systems support      *         *         *                   *
    Hardware Systems
     Revenues                   *         *         *                   *

  Consulting                  (19%)     (22%)     (18%)               (20%)
  On Demand                    (3%)      (4%)       6%                 (1%)
  Education                   (30%)     (26%)      (8%)               (23%)
    Services Revenues         (18%)     (19%)     (13%)               (17%)

       Total Revenues          (1%)       0%       12%                  4%


GEOGRAPHIC REVENUES

REVENUES
  Americas               $  2,671  $  2,979  $  3,284            $  8,934
  Europe, Middle East &
   Africa                   1,642     1,976     2,167               5,785
  Asia Pacific                741       903       953               2,596
                         --------  --------  --------  --------  --------
       Total Revenues    $  5,054  $  5,858  $  6,404            $ 17,315
                         ========  ========  ========  ========  ========

HEADCOUNT

GEOGRAPHIC AREA
  Americas                 32,034    31,849    44,554
  Europe, Middle East &
   Africa                  16,839    16,491    23,566
  Asia Pacific             35,766    35,026    38,372
                         --------  --------  --------  --------  --------
       Total Company       84,639    83,366   106,492
                         ========  ========  ========  ========  ========


(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, 2009 and 2008 for the fiscal 2010
    and fiscal 2009 constant currency growth rate calculations presented,
    respectively, rather than the actual exchange rates in effect during
    the respective periods.

  * Not meaningful



                            ORACLE  CORPORATION

                     Q3 FISCAL 2010 FINANCIAL RESULTS
          SUPPLEMENTAL TOTAL SOFTWARE PRODUCT REVENUE ANALYSIS  (1)
                              ($ in millions)

                                            Fiscal 2009
                         ------------------------------------------------
                            Q1        Q2        Q3        Q4       TOTAL
                         --------  --------  --------  --------  --------
SOFTWARE REVENUES

DATABASE & MIDDLEWARE
 REVENUES
  New software licenses  $    906  $  1,157  $  1,120  $  1,939  $  5,123
  Software license
   updates and product
   support                  1,892     1,835     1,914     2,008     7,649
                         --------  --------  --------  --------  --------
      Database and
       Middleware
       Revenues          $  2,798  $  2,992  $  3,034  $  3,947  $ 12,772
                         ========  ========  ========  ========  ========

AS REPORTED GROWTH RATES
  New software licenses        27%        4%       (4%)     (10%)       0%
  Software license
   updates and product
   support                     26%       17%       16%       12%       18%
      Database and
       Middleware
       Revenues                27%       12%        8%        0%       10%

CONSTANT CURRENCY GROWTH
 RATES (2)
  New software licenses        23%       12%        6%       (1%)       7%
  Software license
   updates and product
   support                     22%       24%       25%       23%       23%
      Database and
       Middleware
       Revenues                22%       19%       17%       10%       16%

APPLICATIONS REVENUES
  New software licenses  $    331  $    469  $    396  $    805  $  2,000
  Software license
   updates and product
   support                  1,043     1,015     1,003     1,044     4,105
                         --------  --------  --------  --------  --------
      Applications
       Revenues          $  1,374  $  1,484  $  1,399  $  1,849  $  6,105
                         ========  ========  ========  ========  ========

AS REPORTED GROWTH RATES
  New software licenses       (12%)     (15%)     (12%)     (19%)     (16%)
  Software license
   updates and product
   support                     18%        9%        3%        0%        7%
      Applications
       Revenues                 9%        0%       (2%)      (9%)      (2%)

CONSTANT CURRENCY GROWTH
 RATES (2)
  New software licenses       (14%)      (9%)      (4%)     (11%)     (10%)
  Software license
   updates and product
   support                     13%       15%       11%        9%       12%
      Applications
       Revenues                 5%        6%        7%       (1%)       4%



                                            Fiscal 2010
                         ------------------------------------------------
                            Q1        Q2        Q3        Q4       TOTAL
                         --------  --------  --------  --------  --------
SOFTWARE REVENUES

DATABASE & MIDDLEWARE
 REVENUES
  New software licenses  $    711  $  1,175  $  1,241            $  3,127
  Software license
   updates and product
   support                  2,065     2,131     2,191               6,387
                         --------  --------  --------  --------  --------
      Database and
       Middleware
       Revenues          $  2,776  $  3,306  $  3,432            $  9,514
                         ========  ========  ========  ========  ========

AS REPORTED GROWTH RATES
  New software licenses       (22%)       1%       11%                 (2%)
  Software license
   updates and product
   support                      9%       16%       14%                 13%
      Database and
       Middleware
       Revenues                (1%)      10%       13%                  8%

CONSTANT CURRENCY GROWTH
 RATES (2)
  New software licenses       (19%)      (5%)       5%                 (5%)
  Software license
   updates and product
   support                     14%       12%        9%                 12%
      Database and
       Middleware
       Revenues                 4%        5%        8%                  6%

APPLICATIONS REVENUES
  New software licenses  $    317  $    478  $    477            $  1,272
  Software license
   updates and product
   support                  1,052     1,116     1,106               3,274
                         --------  --------  --------  --------  --------
      Applications
       Revenues          $  1,369  $  1,594  $  1,583            $  4,546
                         ========  ========  ========  ========  ========

AS REPORTED GROWTH RATES
  New software licenses        (4%)       2%       21%                  6%
  Software license
   updates and product
   support                      1%       10%       10%                  7%
      Applications
       Revenues                 0%        7%       13%                  7%

CONSTANT CURRENCY GROWTH
 RATES (2)
  New software licenses         0%       (3%)      15%                  4%
  Software license
   updates and product
   support                      6%        6%        5%                  6%
      Applications
       Revenues                 4%        3%        8%                  5%


(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, 2009 and 2008 for the fiscal 2010
    and fiscal 2009 constant currency growth rate calculations presented,
    respectively, rather than the actual exchange rates in effect during
    the respective periods.




                            ORACLE CORPORATION

                    Q3 FISCAL 2010 FINANCIAL RESULTS
      SUPPLEMENTAL GEOGRAPHIC NEW SOFTWARE LICENSE AND HARDWARE
                  SYSTEMS PRODUCTS REVENUES ANALYSIS (1)
                             ($ in millions)

                                            Fiscal 2009
                         ------------------------------------------------
                            Q1        Q2        Q3        Q4       TOTAL
                         --------  --------  --------  --------  --------
AMERICAS

  Database & Middleware  $    354  $    471  $    449  $    840  $  2,114
  Applications                182       280       224       416     1,102
                         --------  --------  --------  --------  --------
     New Software License
      Revenues           $    536  $    751  $    673  $  1,256  $  3,216
                         --------  --------  --------  --------  --------
  Hardware Systems
   Products Revenues     $      -  $      -  $      -  $      -  $      -
                         ========  ========  ========  ========  ========

AS REPORTED GROWTH RATES
  Database & Middleware        18%        5%       (7%)      (9%)      (2%)
  Applications                 (9%)      (9%)     (11%)     (25%)     (16%)
     New Software License
      Revenues                  7%        0%       (9%)     (15%)      (7%)
  Hardware Systems
   Products Revenues            *         *         *         *         *

CONSTANT CURRENCY GROWTH
 RATES (2)
  Database & Middleware        17%       10%       (1%)      (6%)       2%
  Applications                (10%)      (6%)      (8%)     (22%)     (14%)
     New Software License
      Revenues                  6%        3%       (4%)     (12%)      (4%)
  Hardware Systems
   Products Revenues            *         *         *         *         *


EUROPE / MIDDLE EAST /
 AFRICA

  Database & Middleware  $    326  $    431  $    446  $    759  $  1,962
  Applications                 94       126       125       282       627
                          --------  --------  --------  --------  --------
     New Software License
      Revenues           $    420  $    557  $    571  $  1,041  $  2,589
                         --------  --------  --------  --------  --------
  Hardware Systems
   Products Revenues     $      -  $      -  $      -  $      -  $      -
                         ========  ========  ========  ========  ========

AS REPORTED GROWTH RATES
  Database & Middleware        28%        2%        0%      (14%)      (2%)
  Applications                (23%)     (28%)     (12%)     (11%)     (17%)
     New Software License
      Revenues                 11%       (7%)      (3%)     (13%)      (6%)
  Hardware Systems
   Products Revenues            *         *         *         *         *

CONSTANT CURRENCY GROWTH
 RATES (2)
  Database & Middleware        20%       16%       15%        1%       10%
  Applications                (26%)     (16%)       2%        5%       (6%)
     New Software License
      Revenues                  5%        7%       12%        2%        6%
  Hardware Systems
   Products Revenues            *         *         *         *         *


ASIA PACIFIC

  Database & Middleware  $    226  $    255  $    225  $    340  $  1,047
  Applications                 55        63        47       107       271
                         --------  --------  --------  --------  --------
     New Software License
      Revenues           $    281  $    318  $    272  $    447  $  1,318
                         --------  --------  --------  --------  --------
  Hardware Systems
   Products Revenues     $      -  $      -  $      -  $      -  $      -
                         ========  ========  ========  ========  ========

AS REPORTED GROWTH RATES
  Database & Middleware        45%        4%       (3%)      (1%)       7%
  Applications                  1%      (13%)     (18%)     (11%)     (11%)
     New Software License
      Revenues                 34%        0%       (6%)      (3%)       3%
  Hardware Systems
   Products Revenues            *         *         *         *         *

CONSTANT CURRENCY GROWTH
 RATES (2)
  Database & Middleware        38%        8%        1%        5%       11%
  Applications                 (1%)      (2%)      (2%)      (4%)      (3%)
     New Software License
      Revenues                 28%        5%        1%        3%        7%
  Hardware Systems
   Products Revenues            *         *         *         *         *


TOTAL COMPANY

  Database & Middleware  $    906  $  1,157  $  1,120  $  1,939  $  5,123
  Applications                331       469       396       805     2,000
                         --------  --------  --------  --------  --------
     New Software License
      Revenues           $  1,237  $  1,626  $  1,516  $  2,744  $  7,123
                         --------  --------  --------  --------  --------
  Hardware Systems
   Products Revenues     $      -  $      -  $      -  $      -  $      -
                         ========  ========  ========  ========  ========

AS REPORTED GROWTH RATES
  Database & Middleware        27%        4%       (4%)     (10%)       0%
  Applications                (12%)     (15%)     (12%)     (19%)     (16%)
     New Software License
      Revenues                 14%       (3%)      (6%)     (13%)      (5%)
  Hardware Systems
   Products Revenues            *         *         *         *         *

CONSTANT CURRENCY GROWTH
 RATES (2)
  Database & Middleware        23%       12%        6%       (1%)       7%
  Applications                (14%)      (9%)      (4%)     (11%)     (10%)
     New Software License
      Revenues                 10%        5%        3%       (4%)       1%
  Hardware Systems
   Products Revenues            *         *         *         *         *



                                            Fiscal 2010
                         ------------------------------------------------
                            Q1        Q2        Q3        Q4       TOTAL
                         --------  --------  --------  --------  --------
AMERICAS

  Database & Middleware  $    310  $    492  $    540            $  1,342
  Applications                185       286       283                 754
                         --------  --------  --------  --------  --------
     New Software License
      Revenues           $    495  $    778  $    823            $  2,096
                         --------  --------  --------  --------  --------
  Hardware Systems
   Products Revenues     $      -  $      -  $    131            $    131
                         ========  ========  ========  ========  ========

AS REPORTED GROWTH RATES
  Database & Middleware       (12%)       4%       20%                  5%
  Applications                  2%        2%       26%                 10%
     New Software License
      Revenues                 (7%)       4%       22%                  7%
  Hardware Systems
   Products Revenues            *         *         *                   *

CONSTANT CURRENCY GROWTH
 RATES (2)
  Database & Middleware       (11%)       2%       16%                  3%
  Applications                  6%        1%       23%                  9%
     New Software License
      Revenues                 (5%)       1%       18%                  5%
  Hardware Systems
   Products Revenues            *         *         *                   *


EUROPE / MIDDLE EAST /
 AFRICA

  Database & Middleware  $    224  $    429  $    456            $  1,109
  Applications                 90       119       134                 343
                         --------  --------  --------  --------  --------
     New Software License
      Revenues           $    314  $    548  $    590            $  1,452
                         --------  --------  --------  --------  --------
  Hardware Systems
   Products Revenues     $      -  $      -  $     95            $     95
                         ========  ========  ========  ========  ========

AS REPORTED GROWTH RATES
  Database & Middleware       (31%)      (1%)       2%                 (8%)
  Applications                 (5%)      (6%)       7%                 (1%)
     New Software License
      Revenues                (25%)      (2%)       3%                 (6%)
  Hardware Systems
   Products Revenues            *         *         *                   *

CONSTANT CURRENCY GROWTH
 RATES (2)
  Database & Middleware       (26%)     (10%)      (3%)               (11%)
  Applications                  3%      (14%)       1%                 (4%)
     New Software License
      Revenues                (20%)     (11%)      (2%)               (10%)
  Hardware Systems
   Products Revenues            *         *         *                   *


ASIA PACIFIC

  Database & Middleware  $    177  $    254  $    245            $    676
  Applications                 42        73        60                 175
                         --------  --------  --------  --------  --------
     New Software License
      Revenues           $    219  $    327  $    305            $    851
                         --------  --------  --------  --------  --------
  Hardware Systems
   Products Revenues     $      -  $      -  $     47            $     47
                         ========  ========  ========  ========  ========

AS REPORTED GROWTH RATES
  Database & Middleware       (22%)       0%        9%                 (4%)
  Applications                (24%)      17%       29%                  7%
     New Software License
      Revenues                (22%)       3%       12%                 (2%)
  Hardware Systems
   Products Revenues            *         *         *                   *

CONSTANT CURRENCY GROWTH
 RATES (2)
  Database & Middleware       (22%)     (10%)       1%                (10%)
  Applications                (23%)       2%       16%                 (2%)
     New Software License
      Revenues                (22%)      (8%)       4%                 (9%)
  Hardware Systems
   Products Revenues            *         *         *                   *


TOTAL COMPANY

  Database & Middleware  $    711  $  1,175  $  1,241            $  3,127
  Applications                317       478       477               1,272
                         --------  --------  --------  --------  --------
     New Software License
      Revenues           $  1,028  $  1,653  $  1,718            $  4,399
                         --------  --------  --------  --------  --------
  Hardware Systems
   Products Revenues     $      -  $      -  $    273            $    273
                         ========  ========  ========  ========  ========

AS REPORTED GROWTH RATES
  Database & Middleware       (22%)       1%       11%                 (2%)
  Applications                 (4%)       2%       21%                  6%
     New Software License
      Revenues                (17%)       2%       13%                  0%
  Hardware Systems
   Products Revenues            *         *         *                   *

CONSTANT CURRENCY GROWTH
 RATES (2)
  Database & Middleware       (19%)      (5%)       5%                 (5%)
  Applications                  0%       (3%)      15%                  4%
     New Software License
      Revenues                (14%)      (5%)       8%                 (3%)
  Hardware Systems
   Products Revenues            *         *         *                   *


(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, 2009 and 2008 for the fiscal 2010
    and fiscal 2009 constant currency growth rate calculations presented,
    respectively, rather than the actual exchange rates in effect during
    the respective periods.

  * Not meaningful





                                                                 APPENDIX A

                             ORACLE CORPORATION
                      Q3 FISCAL 2010 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:

  • Software license updates and product support and hardware systems support deferred revenues: Business combination accounting rules require us to account for the fair value of software license updates and product support contracts and hardware systems support contracts assumed in connection with our acquisitions. Because these support contracts are typically one year in duration, our GAAP revenues for the one year period subsequent to our acquisition of a business do not reflect the full amount of support revenues on these assumed support contracts that would have otherwise been recorded by the acquired entity. The non-GAAP adjustment to our 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 support 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 hardware systems support contracts; however, we cannot be certain that our customers will renew our software license updates and product support contracts or our hardware systems support contracts.

  • Hardware systems products expenses: We have excluded the effects of the fair value adjustments to our inventories acquired from Sun that were sold to customers in the periods presented, which resulted in the exclusion of these adjustments from our hardware systems products expenses and net income measures. Business combination accounting rules require us to account for inventories assumed from our acquisitions at their fair values. The non-GAAP adjustment to our hardware systems products expenses is intended to reflect the hardware systems products expenses that would have been otherwise recorded by Sun as a standalone entity upon the sale of these inventories. We believe this adjustment is useful to investors as a measure of the ongoing performance of our business because we do not expect the fair value adjustments to our inventories to recur in future periods with respect to the Sun acquisition and, therefore, we expect that these adjustments will not impact our future operating expenses. Investors should note that other factors may affect the future values of our inventories and hardware systems products expenses. If we assume inventories in future acquisitions, we will be required to assess their fair values, which may result in fair value adjustments to those inventories.

  • 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 after the measurement period or purchase price allocation period has ended and certain other operating expenses, 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 Information

  • Contact:
    Ken Bond
    Oracle Investor Relations
    1.650.607.0349
    Email Contact

    Karen Tillman
    Oracle Corporate Communications
    1.650.607.0326
    Email Contact