SOURCE: Oracle Corporation

Oracle Corporation

September 16, 2015 16:00 ET

Cloud SaaS and PaaS Revenues up 34% in U.S. Dollars and up 38% in Constant Currency

Cloud Plus On-Premise Software Revenues Down 2% in U.S. Dollars and up 6% in Constant Currency

REDWOOD SHORES, CA--(Marketwired - Sep 16, 2015) - Oracle Corporation (NYSE: ORCL) today announced fiscal 2016 Q1 results. The strengthening of the U.S. dollar compared to foreign currencies had a significant impact on results in the quarter. Total Revenues were $8.4 billion, down 2% in U.S. dollars but up 7% in constant currency. Cloud plus On-Premise Software Revenues were $6.5 billion, down 2% in U.S. dollars and up 6% in constant currency. Total Cloud Revenues were $611 million, up 29% in U.S. dollars and up 34% in constant currency. Cloud software as a service (SaaS) and platform as a service (PaaS) revenues were $451 million, up 34% in U.S. dollars and up 38% in constant currency. Cloud infrastructure as a service (IaaS) revenues were $160 million, up 16% in U.S. dollars and up 23% in constant currency. Total On-Premise Software Revenues were $5.8 billion, down 4% in U.S. dollars but up 4% in constant currency. Total Hardware Revenues were $1.1 billion, down 3% in U.S. dollars but up 6% in constant currency. Total Services Revenues were $862 million, up 1% in U.S. dollars and up 10% in constant currency.

Operating Income was $2.7 billion and Operating Margin was 31%. Non-GAAP Operating Income was $3.5 billion and non-GAAP Operating Margin was 41%. Net Income was $1.7 billion while non-GAAP Net Income was $2.3 billion. Earnings Per Share was $0.40, while non-GAAP Earnings Per Share was $0.53. Without the impact of the U.S. dollar strengthening compared to foreign currencies, Oracle's reported Q1 GAAP and non-GAAP Earnings Per Share would have been 6 cents higher.

Short-term deferred revenues were $9.1 billion, up 2% in U.S. dollars and up 10% in constant currency compared with a year ago. Operating cash flow on a trailing twelve-month basis was $13.5 billion.

"Our traditional on-premise software business plus our new cloud business grew at a combined rate of 6% in constant currency," said Oracle CEO, Safra Catz. "This growth is being driven by new SaaS and PaaS annual recurring cloud subscription contracts which almost tripled in the quarter. As our cloud business scales-up, we plan to double our SaaS and PaaS cloud margins over the next two years -- starting from 40% this just completed Q1, to approximately 60% this coming Q4, and then on up to 80% two years from now. Rapidly growing cloud revenue combined with a doubling of cloud margins will have a huge impact on EPS growth going forward."

"In Q1 SaaS and PaaS revenue was up 38% in constant currency -- in Q4 that revenue growth rate will be over 60%," said Oracle CEO, Mark Hurd. "That cloud revenue growth rate is being driven by a year-over-year bookings growth rate of over 150% in Q1. Our increasing revenue growth rate is in sharp contrast to our primary cloud competitor's revenue growth rates which are on their way down."

"We are still on target to book between $1.5 and $2.0 billion of new SaaS and PaaS business this fiscal year," said Oracle Executive Chairman and CTO Larry Ellison. "That means Oracle would sell between 50% more and double the amount of new cloud business than salesforce.com plans to sell in their current fiscal year. Oracle is the world's second largest SaaS and PaaS company, but we are rapidly closing in on number one."

The Board of Directors also declared a quarterly cash dividend of $0.15 per share of outstanding common stock. This dividend will be paid to stockholders of record as of the close of business on October 14, 2015, with a payment date of October 28, 2015.

Q1 Fiscal 2016 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 (816) 287-5563, Passcode: 425392. 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 2016 financial tables are available on the Oracle Investor Relations website.

A replay of the conference call will also be available by dialing (855) 859-2056 or (404) 537-3406, Pass Code: 33778759.

About Oracle

Oracle offers a comprehensive and fully integrated stack of cloud applications and platform services. 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 our expectations of future increases in our SaaS and PaaS cloud margins, revenues, and growth rates; EPS growth; and the competitive landscape for enterprise cloud, 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, geopolitical and market conditions, including the continued slow economic recovery in Europe, parts of the U.S. and 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, fluctuations in currency exchange rates, delays in delivery of new products or releases or a decline in our renewal rates for contracts. (3) Our cloud computing strategy, including our Cloud SaaS, PaaS, Infrastructure as a Service and Database as a Service offerings, may not be successful. (4) 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. (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) If the security measures for our software, hardware, services or Oracle Cloud offerings are compromised or subject to a successful cyber-attack, or if such offerings contain significant coding, manufacturing or configuration errors, we may experience reputational harm, legal claims and financial exposure. (7) 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. 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 16, 2015. Oracle undertakes no duty to update any statement in light of new information or future events.

 
ORACLE CORPORATION
 
Q1 FISCAL 2016 FINANCIAL RESULTS
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
($ in millions, except per share data)
 
    Three Months Ended August 31,       % Increase (Decrease)
    2015   % of Revenues   2014   % of Revenues   % Increase (Decrease) in US $   in Constant Currency (1)
REVENUES                            
  Cloud software as a service and platform as a service   $ 451   5%   $ 337   4%   34%   38%
  Cloud infrastructure as a service     160   2%     138   1%   16%   23%
    Total Cloud Revenues     611   7%     475   5%   29%   34%
  New software licenses     1,151   14%     1,370   16%   (16%)   (9%)
  Software license updates and product support     4,696   56%     4,731   55%   (1%)   8%
    Total On-Premise Software Revenues     5,847   70%     6,101   71%   (4%)   4%
      Total Cloud and On-Premise Software Revenues     6,458   77%     6,576   76%   (2%)   6%
  Hardware products     570   7%     578   7%   (1%)   9%
  Hardware support     558   6%     587   7%   (5%)   4%
      Total Hardware Revenues     1,128   13%     1,165   14%   (3%)   6%
      Total Services Revenues     862   10%     855   10%   1%   10%
        Total Revenues     8,448   100%     8,596   100%   (2%)   7%
                             
OPERATING EXPENSES                            
  Sales and marketing     1,731   21%     1,706   20%   1%   10%
  Cloud software as a service and platform as a service     276   3%     149   2%   85%   91%
  Cloud infrastructure as a service     89   1%     79   1%   12%   19%
  Software license updates and product support     291   4%     272   3%   7%   15%
  Hardware products     303   4%     298   4%   2%   13%
  Hardware support     180   2%     192   2%   (6%)   2%
  Services     711   8%     691   8%   3%   12%
  Research and development     1,390   17%     1,329   16%   5%   7%
  General and administrative     257   3%     276   3%   (7%)   (2%)
  Amortization of intangible assets     452   5%     547   6%   (17%)   (17%)
  Acquisition related and other     31   0%     25   0%   28%   28%
  Restructuring     83   1%     69   1%   20%   49%
        Total Operating Expenses     5,794   69%     5,633   66%   3%   9%
                             
OPERATING INCOME     2,654   31%     2,963   34%   (10%)   2%
  Interest expense     (374)   (4%)     (261)   (3%)   43%   43%
  Non-operating income, net     30   0%     16   0%   84%   202%
                             
INCOME BEFORE PROVISION FOR INCOME TAXES     2,310   27%     2,718   31%   (15%)   (2%)
  Provision for income taxes     563   6%     534   6%   5%   22%
                             
NET INCOME   $ 1,747   21%   $ 2,184   25%   (20%)   (8%)
                             
EARNINGS PER SHARE:                            
  Basic   $ 0.40       $ 0.49            
  Diluted   $ 0.40       $ 0.48            
                             
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:                            
  Basic     4,317         4,451            
  Diluted     4,412         4,548            
                             
     
(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, 2015, 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, 2015 compared with the corresponding prior year period decreased our revenues by 9 percentage points, operating expenses by 6 percentage points and operating income by 12 percentage points.
     
     
 
ORACLE CORPORATION
 
Q1 FISCAL 2016 FINANCIAL RESULTS
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1)
($ in millions, except per share data)
 
    Three Months Ended August 31,   % Increase (Decrease)
in US $
  % Increase (Decrease) in Constant Currency (2)
    2015 GAAP   Adj.   2015
Non-GAAP
  2014 GAAP   Adj.   2014
Non-GAAP
  GAAP   Non-GAAP   GAAP   Non-GAAP
                                                     
TOTAL REVENUES   $ 8,448   $ 3   $ 8,451   $ 8,596   $ 3   $ 8,599   (2%)   (2%)   7%   7%
                                                     
TOTAL CLOUD AND ON-PREMISE SOFTWARE REVENUES   $ 6,458   $ 2   $ 6,460   $ 6,576   $ 2   $ 6,578   (2%)   (2%)   6%   6%
  Cloud software as a service and platform as a service     451     1     452     337     2     339   34%   33%   38%   38%
  Cloud infrastructure as a service     160     -     160     138     -     138   16%   16%   23%   23%
  New software licenses     1,151     -     1,151     1,370     -     1,370   (16%)   (16%)   (9%)   (9%)
  Software license updates and product support     4,696     1     4,697     4,731     -     4,731   (1%)   (1%)   8%   8%
                                                     
TOTAL HARDWARE REVENUES   $ 1,128   $ 1   $ 1,129   $ 1,165   $ 1   $ 1,166   (3%)   (3%)   6%   6%
  Hardware products     570     -     570     578     -     578   (1%)   (1%)   9%   9%
  Hardware support     558     1     559     587     1     588   (5%)   (5%)   4%   4%
                                                     
TOTAL OPERATING EXPENSES   $ 5,794   $ (816)   $ 4,978   $ 5,633   $ (853)   $ 4,780   3%   4%   9%   11%
  Stock-based compensation (3)     250     (250)     -     212     (212)     -   18%   *   18%   *
  Amortization of intangible assets (4)     452     (452)     -     547     (547)     -   (17%)   *   (17%)   *
  Acquisition related and other     31     (31)     -     25     (25)     -   28%   *   28%   *
  Restructuring     83     (83)     -     69     (69)     -   20%   *   49%   *
                                                       
OPERATING INCOME   $ 2,654   $ 819   $ 3,473   $ 2,963   $ 856   $ 3,819   (10%)   (9%)   2%   0%
                                                     
OPERATING MARGIN %     31%           41%     34%           44%   (305) bp.   (331) bp.   (155) bp.   (248) bp.
                                                     
INCOME TAX EFFECTS (5)   $ 563   $ 219   $ 782   $ 534   $ 234   $ 768   5%   2%   22%   14%
                                                     
NET INCOME   $ 1,747   $ 600   $ 2,347   $ 2,184   $ 622   $ 2,806   (20%)   (16%)   (8%)   (7%)
                                                     
DILUTED EARNINGS PER SHARE   $ 0.40         $ 0.53   $ 0.48         $ 0.62   (18%)   (14%)   (5%)   (4%)
                                                     
DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING     4,412     -     4,412     4,548     -     4,548   (3%)   (3%)   (3%)   (3%)
                                                     
(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, 2015, which was the last day of our prior fiscal year, rather than the actual exchange rates in effect during the respective periods.
     
(3)   Stock-based compensation was included in the following GAAP operating expense categories:
     
    Three Months Ended   Three Months Ended
    August 31, 2015   August 31, 2014
    GAAP   Adj.   Non-GAAP   GAAP   Adj.   Non-GAAP
  Sales and marketing   $ 51   $ (51)   $ -   $ 43   $ (43)   $ -
  Cloud software as a service and platform as a service     4     (4)     -     2     (2)     -
  Cloud infrastructure as a service     1     (1)     -     1     (1)     -
  Software license updates and product support     6     (6)     -     5     (5)     -
  Hardware products     2     (2)     -     1     (1)     -
  Hardware support     1     (1)     -     1     (1)     -
  Services     8     (8)     -     6     (6)     -
  Research and development     148     (148)     -     108     (108)     -
  General and administrative     29     (29)     -     45     (45)     -
  Subtotal     250     (250)     -     212     (212)     -
  Acquisition related and other     3     (3)     -     3     (3)     -
  Total stock-based compensation   $ 253   $ (253)   $ -   $ 215   $ (215)   $ -
                                       
(4)   Estimated future annual amortization expense related to intangible assets as of August 31, 2015 was as follows:
     
  Remainder of Fiscal 2016   $ 1,173                              
  Fiscal 2017     995                              
  Fiscal 2018     848                              
  Fiscal 2019     742                              
  Fiscal 2020     598                              
  Fiscal 2021     457                              
  Thereafter     1,142                              
  Total intangible assets, net   $ 5,955                              
                                       
(5)   Income tax effects were calculated reflecting an effective GAAP tax rate of 24.4% and 19.7% in the first quarter of fiscal 2016 and 2015, respectively, and an effective non-GAAP tax rate of 25.0% and 21.5% in the first quarter of fiscal 2016 and 2015, respectively. The difference between our GAAP and non-GAAP tax rates in the first quarter of fiscal 2016 and 2015 were primarily due to the net tax effects of acquisition related items, including the tax effects of amortization of intangible assets.
     
*   Not meaningful
     
     
         
ORACLE CORPORATION
         
Q1 FISCAL 2016 FINANCIAL RESULTS
CONDENSED CONSOLIDATED BALANCE SHEETS
($ in millions)
         
    August 31,   May 31,
    2015   2015
ASSETS            
  Current Assets:            
    Cash and cash equivalents   $ 16,739   $ 21,716
    Marketable securities     39,191     32,652
    Trade receivables, net     3,475     5,618
    Inventories     251     314
    Deferred tax assets     671     663
    Prepaid expenses and other current assets     1,795     2,220
      Total Current Assets     62,122     63,183
               
  Non-Current Assets:            
    Property, plant and equipment, net     3,896     3,686
    Intangible assets, net     5,955     6,406
    Goodwill, net     34,133     34,087
    Deferred tax assets     789     795
    Other assets     2,811     2,746
      Total Non-Current Assets     47,584     47,720
             
TOTAL ASSETS   $ 109,706   $ 110,903
             
LIABILITIES AND EQUITY            
             
  Current Liabilities:            
    Notes payable, current   $ 2,000   $ 1,999
    Accounts payable     422     806
    Accrued compensation and related benefits     1,384     1,839
    Deferred revenues     9,078     7,245
    Other current liabilities     2,507     3,402
      Total Current Liabilities     15,391     15,291
                   
  Non-Current Liabilities:            
    Notes payable, non-current     40,050     39,959
    Income taxes payable     4,408     4,386
    Other non-current liabilities     2,319     2,169
      Total Non-Current Liabilities     46,777     46,514
                   
  Equity     47,538     49,098
               
TOTAL LIABILITIES AND EQUITY   $ 109,706   $ 110,903
             
             
             
ORACLE CORPORATION
 
Q1 FISCAL 2016 FINANCIAL RESULTS
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
($ in millions)
 
    Three Months Ended August 31,  
    2015     2014  
Cash Flows From Operating Activities:                
  Net income   $ 1,747     $ 2,184  
  Adjustments to reconcile net income to net cash provided by operating activities:                
    Depreciation     219       160  
    Amortization of intangible assets     452       547  
    Deferred income taxes     (30 )     (68 )
    Stock-based compensation     253       215  
    Tax benefits on the exercise of stock options and vesting of restricted stock-based awards     102       96  
    Excess tax benefits on the exercise of stock options and vesting of restricted stock-based awards     (25 )     (51 )
    Other, net     45       46  
    Changes in operating assets and liabilities, net of effects from acquisitions:                
      Decrease in trade receivables, net     2,150       2,506  
      Decrease in inventories     50       10  
      Decrease in prepaid expenses and other assets     379       275  
      Decrease in accounts payable and other liabilities     (1,353 )     (1,088 )
      (Decrease) increase in income taxes payable     (204 )     80  
      Increase in deferred revenues     2,071       1,816  
        Net cash provided by operating activities     5,856       6,728  
                 
Cash Flows From Investing Activities:                
  Purchases of marketable securities and other investments     (11,669 )     (10,340 )
  Proceeds from maturities and sales of marketable securities and other investments     4,644       3,878  
  Acquisitions, net of cash acquired     -       (37 )
  Capital expenditures     (446 )     (201 )
        Net cash used for investing activities     (7,471 )     (6,700 )
                 
Cash Flows From Financing Activities:                
  Payments for repurchases of common stock     (2,846 )     (2,000 )
  Proceeds from issuances of common stock     296       593  
  Shares repurchased for tax withholdings upon vesting of restricted stock-based awards     (70 )     (5 )
  Payments of dividends to stockholders     (650 )     (537 )
  Proceeds from borrowings, net of issuance costs     -       9,945  
  Repayments of borrowings     -       (1,500 )
  Excess tax benefits on the exercise of stock options and vesting of restricted stock-based awards     25       51  
  Distributions to noncontrolling interests     (25 )     (27 )
        Net cash (used for) provided by financing activities     (3,270 )     6,520  
                 
Effect of exchange rate changes on cash and cash equivalents     (92 )     (138 )
                 
Net (decrease) increase in cash and cash equivalents     (4,977 )     6,410  
                 
Cash and cash equivalents at beginning of period     21,716       17,769  
                 
Cash and cash equivalents at end of period   $ 16,739     $ 24,179  
                 
                 
 
ORACLE CORPORATION
Q1 FISCAL 2016 FINANCIAL RESULTS
FREE CASH FLOW - TRAILING 4-QUARTERS (1)
($ in millions)
                                     
    Fiscal 2015   Fiscal 2016    
    Q1     Q2     Q3   Q4   Q1   Q2   Q3   Q4
                                     
GAAP Operating Cash Flow   $ 15,357     $ 15,273     $ 14,509   $ 14,336   $ 13,464            
                                               
Capital Expenditures     (628 )     (727 )     (948 )   (1,391 )   (1,636 )          
                                               
Free Cash Flow   $ 14,729     $ 14,546     $ 13,561   $ 12,945   $ 11,828            
                                               
% Growth over prior year     4 %     0 %     (6 )%   (10 )%   (20 )%          
                                               
                                               
GAAP Net Income   $ 10,948     $ 10,896     $ 10,827   $ 9,938   $ 9,501            
                                               
Free Cash Flow as a % of Net Income     135 %     133 %     125 %   130 %   124 %          
                                               
(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.
     
     
 
ORACLE CORPORATION
Q1 FISCAL 2016 FINANCIAL RESULTS
SUPPLEMENTAL ANALYSIS OF GAAP REVENUES AND HEADCOUNT (1)
($ in millions)
 
    Fiscal 2015     Fiscal 2016  
Q1     Q2     Q3     Q4     TOTAL     Q1     Q2   Q3   Q4   TOTAL  
REVENUES                                                                    
Cloud software as a service and platform as a service   $ 337     $ 361     $ 372     $ 416     $ 1,485     $ 451                 $ 451  
Cloud infrastructure as a service     138       155       155       160       608       160                   160  
  Total Cloud Revenues     475       516       527       576       2,093       611                   611  
                                                                     
New software licenses     1,370       2,045       1,982       3,138       8,535       1,151                   1,151  
Software license updates and product support     4,731       4,768       4,661       4,686       18,847       4,696                   4,696  
  Total On-Premise Software Revenues     6,101       6,813       6,643       7,824       27,382       5,847                   5,847  
    Total Cloud and On-Premise Software Revenues     6,576       7,329       7,170       8,400       29,475       6,458                   6,458  
                                                                     
Hardware products     578       717       712       818       2,825       570                   570  
Hardware support     587       617       587       589       2,380       558                   558  
    Total Hardware Revenues     1,165       1,334       1,299       1,407       5,205       1,128                   1,128  
                                                                     
    Total Services Revenues     855       935       858       899       3,546       862                   862  
                                                                     
      Total Revenues   $ 8,596     $ 9,598     $ 9,327     $ 10,706     $ 38,226     $ 8,448                 $ 8,448  
                                                                     
AS REPORTED REVENUE GROWTH RATES                                                                    
Cloud software as a service and platform as a service     32%       39%       30%       29%       32%       34%                   34%  
Cloud infrastructure as a service     26%       60%       28%       25%       33%       16%                   16%  
  Total Cloud Revenues     31%       45%       29%       28%       33%       29%                   29%  
                                                                     
New software licenses     (2% )     (4% )     (7% )     (17% )     (9% )     (16% )                 (16% )
Software license updates and product support     7%       6%       2%       0%       4%       (1% )                 (1% )
  Total On-Premise Software Revenues     5%       3%       (1% )     (8% )     (1% )     (4% )                 (4% )
    Total Cloud and On-Premise Software Revenues     6%       5%       1%       (6% )     1%       (2% )                 (2% )
                                                                     
Hardware products     (14% )     0%       (2% )     (6% )     (5% )     (1% )                 (1% )
Hardware support     (1% )     1%       (2% )     (1% )     (1% )     (5% )                 (5% )
    Total Hardware Revenues     (8% )     1%       (2% )     (4% )     (3% )     (3% )                 (3% )
                                                                     
    Total Services Revenues     (7% )     (3% )     (3% )     (4% )     (4% )     1%                   1%  
                                                                     
      Total Revenues     3%       3%       0%       (5% )     0%       (2% )                 (2% )
                                                                     
CONSTANT CURRENCY GROWTH RATES (2)                                                                    
Cloud software as a service and platform as a service     32%       41%       34%       35%       35%       38%                   38%  
Cloud infrastructure as a service     25%       62%       32%       31%       36%       23%                   23%  
  Total Cloud Revenues     30%       47%       33%       34%       36%       34%                   34%  
                                                                     
New software licenses     (2% )     0%       0%       (10% )     (4% )     (9% )                 (9% )
Software license updates and product support     6%       9%       8%       8%       8%       8%                   8%  
  Total On-Premise Software Revenues     4%       6%       6%       0%       4%       4%                   4%  
    Total Cloud and On-Premise Software Revenues     6%       8%       7%       2%       5%       6%                   6%  
                                                                     
Hardware products     (14% )     4%       6%       3%       0%       9%                   9%  
Hardware support     (2% )     5%       4%       7%       4%       4%                   4%  
    Total Hardware Revenues     (8% )     4%       5%       5%       2%       6%                   6%  
                                                                     
    Total Services Revenues     (8% )     1%       3%       5%       0%       10%                   10%  
                                                                     
      Total Revenues     2%       7%       6%       3%       4%       7%                   7%  
                                                                     
                                                                     
GEOGRAPHIC REVENUES                                                                    
                                                                     
REVENUES                                                                    
Americas   $ 4,620     $ 5,221     $ 5,134     $ 6,133     $ 21,107     $ 4,716                 $ 4,716  
Europe, Middle East & Africa     2,589       2,911       2,813       3,067       11,380       2,456                   2,456  
Asia Pacific     1,387       1,466       1,380       1,506       5,739       1,276                   1,276  
      Total Revenues   $ 8,596     $ 9,598     $ 9,327     $ 10,706     $ 38,226     $ 8,448                 $ 8,448  
                                                                     
                                                                     
HEADCOUNT                                                                    
                                                                     
GEOGRAPHIC AREA                                                                    
Americas     54,073       57,243       58,117       58,415               59,901                      
Europe, Middle East & Africa     23,349       26,997       26,989       26,988               27,030                      
Asia Pacific     45,496       46,312       46,456       46,962               48,139                      
      Total Company     122,918       130,552       131,562       132,365               135,070                      
                                                                     
(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, 2015 and 2014 for the fiscal 2016 and fiscal 2015 constant currency growth rate calculations presented, respectively, rather than the actual exchange rates in effect during the respective periods.
     
     
 
ORACLE CORPORATION
Q1 FISCAL 2016 FINANCIAL RESULTS
SUPPLEMENTAL GEOGRAPHIC REVENUES ANALYSIS (1)
($ in millions)
 
    Fiscal 2015     Fiscal 2016  
    Q1     Q2     Q3     Q4     TOTAL     Q1     Q2   Q3   Q4   TOTAL  
                                                                     
AMERICAS                                                                    
  Total Cloud and On-Premise Software Revenues   $ 3,614     $ 4,044     $ 4,021     $ 4,926     $ 16,604     $ 3,684                 $ 3,684  
  Total Hardware Revenues   $ 583     $ 716     $ 686     $ 751     $ 2,737     $ 589                 $ 589  
                                                                       
AS REPORTED GROWTH RATES                                                                    
  Total Cloud and On-Premise Software Revenues     5%       6%       5%       6%       6%       2%                   2%  
  Total Hardware Revenues     (9% )     3%       5%       1%       0%       1%                   1%  
                                                                       
CONSTANT CURRENCY GROWTH RATES (2)                                                                    
  Total Cloud and On-Premise Software Revenues     6%       8%       7%       9%       7%       6%                   6%  
  Total Hardware Revenues     (8% )     5%       7%       4%       2%       6%                   6%  
                                                                       
                                                                       
EUROPE / MIDDLE EAST / AFRICA                                                                    
  Total Cloud and On-Premise Software Revenues   $ 1,992     $ 2,234     $ 2,169     $ 2,369     $ 8,764     $ 1,873                 $ 1,873  
  Total Hardware Revenues   $ 338     $ 380     $ 379     $ 423     $ 1,519     $ 330                 $ 330  
                                                                       
AS REPORTED GROWTH RATES                                                                    
  Total Cloud and On-Premise Software Revenues     10%       4%       (3% )     (22% )     (5% )     (6% )                 (6% )
  Total Hardware Revenues     (6% )     2%       (6% )     (4% )     (3% )     (2% )                 (2% )
                                                                       
CONSTANT CURRENCY GROWTH RATES (2)                                                                    
  Total Cloud and On-Premise Software Revenues     7%       9%       9%       (8% )     3%       7%                   7%  
  Total Hardware Revenues     (7% )     8%       8%       15%       6%       14%                   14%  
                                                                       
                                                                       
ASIA PACIFIC                                                                    
  Total Cloud and On-Premise Software Revenues   $ 970     $ 1,051     $ 980     $ 1,105     $ 4,107     $ 901                 $ 901  
  Total Hardware Revenues   $ 244     $ 238     $ 234     $ 233     $ 949     $ 209                 $ 209  
                                                                       
AS REPORTED GROWTH RATES                                                                    
  Total Cloud and On-Premise Software Revenues     3%       2%       (3% )     (10% )     (3% )     (7% )                 (7% )
  Total Hardware Revenues     (8% )     (7% )     (12% )     (16% )     (11% )     (14% )                 (14% )
                                                                       
CONSTANT CURRENCY GROWTH RATES (2)                                                                    
  Total Cloud and On-Premise Software Revenues     2%       7%       4%       (1% )     3%       7%                   7%  
  Total Hardware Revenues     (8% )     (3% )     (6% )     (8% )     (6% )     (3% )                 (3% )
                                                                       
                                                                       
TOTAL COMPANY                                                                    
  Total Cloud and On-Premise Software Revenues   $ 6,576     $ 7,329     $ 7,170     $ 8,400     $ 29,475     $ 6,458                 $ 6,458  
  Total Hardware Revenues   $ 1,165     $ 1,334     $ 1,299     $ 1,407     $ 5,205     $ 1,128                 $ 1,128  
                                                                       
AS REPORTED GROWTH RATES                                                                    
  Total Cloud and On-Premise Software Revenues     6%       5%       1%       (6% )     1%       (2% )                 (2% )
  Total Hardware Revenues     (8% )     1%       (2% )     (4% )     (3% )     (3% )                 (3% )
                                                                       
CONSTANT CURRENCY GROWTH RATES (2)                                                                    
  Total Cloud and On-Premise Software Revenues     6%       8%       7%       2%       5%       6%                   6%  
  Total Hardware Revenues     (8% )     4%       5%       5%       2%       6%                   6%  
                                                                     
(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, 2015 and 2014 for the fiscal 2016 and fiscal 2015 constant currency growth rate calculations presented, respectively, rather than the actual exchange rates in effect during the respective periods.
     
     

Contact Information

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    Ken Bond
    Oracle Investor Relations
    1.650.607.0349
    Email Contact

    Deborah Hellinger
    Oracle Corporate Communications
    1.212.508.7935
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