SOURCE: Oracle Corporation

Oracle Corporation

December 16, 2010 16:00 ET

Oracle Reports Q2 GAAP EPS up 27% to 37 Cents; Non-GAAP EPS up 33% to 51 Cents

Software New License Sales up 21%, Total Revenues up 47%

REDWOOD SHORES, CA--(Marketwire - December 16, 2010) - Oracle Corporation (NASDAQ: ORCL) today announced both fiscal 2011 Q2 GAAP and non-GAAP total revenues were up 47% to $8.6 billion. Both GAAP and non-GAAP new software license revenues were up 21% to $2.0 billion. GAAP software license updates and product support revenues were up 12% to $3.6 billion, while non-GAAP software license updates and product support revenues were up 12% to $3.7 billion. Both GAAP and non-GAAP hardware systems products revenues were $1.1 billion. GAAP operating income was up 27% to $2.8 billion, and GAAP operating margin was 32%. Non-GAAP operating income was up 33% to $3.8 billion, and non-GAAP operating margin was 44%. GAAP net income was up 28% to $1.9 billion, while non-GAAP net income was up 34% to $2.6 billion. GAAP earnings per share were $0.37, up 27% compared to last year while non-GAAP earnings per share were up 33% to $0.51. GAAP operating cash flow on a trailing twelve-month basis was $9.1 billion.

"Strong revenue performance plus disciplined business management enabled a 33% increase in non-GAAP earnings per share to $0.51," said Oracle President, Safra Catz. "Our new license growth of 21% demonstrates the strength of the company-specific momentum we are seeing. And our Sun business continues to improve with hardware gross margins increasing to 53%."

"Since joining Oracle I've met with and visited many customers that have expressed a high level of enthusiasm around our strategy of engineering hardware and software that works together," said Oracle President, Mark Hurd. "That enthusiasm translates into an Exadata pipeline that has now grown to nearly $2 billion. That number is a good leading indicator that customers are planning to increase their investment in Oracle technology."

"Sun's new SPARC Supercluster computer shattered the world record for database transaction processing performance by running 3 times faster than IBM's fastest computer, and a stunning 7.5 times faster than HP's best ever database performance," said Oracle CEO, Larry Ellison. "Our new generation of Exadata, Exalogic and SPARC Supercluster computers deliver much better performance and much lower cost than the fastest machines from IBM and HP."

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 January 19, 2011, with a payment date of February 9, 2011. 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.

Q2 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 (800) 214-0745 or (913) 643-0950, Passcode: 538205. To access the live webcast 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 http://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 or its Board of Directors' future plans, expectations, beliefs, intentions and prospects, including statements regarding the Exadata pipeline and customers' plans to increase their investments in Oracle technology, 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 recession and global economic crisis, can adversely affect our business, results of operations and financial condition, including our revenue growth and profitability, which in turn could adversely affect our stock price. (2) We may fail to achieve our financial forecasts due to such factors as delays or size reductions in transactions, fewer large transactions in a particular quarter, unanticipated fluctuations in currency exchange rates, delays in delivery of new products or releases or a decline in our renewal rates for 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) 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 or hardware systems products or purchase or renew support contracts. A detailed discussion of these factors and other risks that affect our business is contained in our SEC filings, including our most recent reports on Form 10-K and Form 10-Q, particularly under the heading "Risk Factors." Copies of these filings are available online from the SEC or by contacting Oracle Corporation's Investor Relations Department at (650) 506-4073 or by clicking on SEC Filings on Oracle's Investor Relations website at http://www.oracle.com/investor. All information set forth in this press release is current as of December 16, 2010. Oracle undertakes no duty to update any statement in light of new information or future events.

                            ORACLE CORPORATION

                     Q2 FISCAL 2011 FINANCIAL RESULTS
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                  ($ in millions, except per share data)

                                                                % Increase
                   Three Months Ended November 30,              (Decrease)
               -------------------------------------- % Increase    in
                           % of                % of   (Decrease)  Constant
                 2010    Revenues    2009    Revenues  in US $  Currency(1)
               --------  --------  --------  --------  --------  --------
 REVENUES
   New
    software
    licenses   $  1,999        23% $  1,653        28%       21%       23%
   Software
    license
    updates
    and
    product
    support       3,645        43%    3,247        56%       12%       13%
               --------  --------  --------  --------
     Software
      Revenues    5,644        66%    4,900        84%       15%       17%
               --------  --------  --------  --------
   Hardware
    systems
    products      1,112        13%        -         0%        *         *
   Hardware
    systems
    support         641         7%        -         0%        *         *
               --------  --------  --------  --------
     Hardware
      Systems
      Revenues    1,753        20%        -         0%        *         *
               --------  --------  --------  --------
   Services       1,185        14%      958        16%       24%       25%
               --------  --------  --------  --------
       Total
        Revenues  8,582       100%    5,858       100%       47%       48%
               --------  --------  --------  --------
 OPERATING
  EXPENSES
   Sales and
    marketing     1,530        18%    1,133        19%       35%       36%
   Software
    license
    updates
    and
    product
    support         307         4%      264         5%       16%       17%
   Hardware
    systems
    products        525         6%        -         0%        *         *
   Hardware
    systems
    support         356         4%        -         0%        *         *
   Services         969        11%      832        14%       16%       18%
   Research
    and
    development   1,119        13%      708        12%       58%       58%
   General
    and
    administ-
    rative (2)      156         2%      183         3%      (15%)     (17%)
   Amortization
    of
    intangible
    assets          614         7%      436         8%       41%       41%
   Acquisition
    related and
    other            47         1%       10         0%      349%      284%
   Restructuring    189         2%      114         2%       66%       87%
               --------  --------  --------  --------
       Total
        Operating
        Expenses  5,812        68%    3,680        63%       58%       59%
               --------  --------  --------  --------
 OPERATING
  INCOME          2,770        32%    2,178        37%       27%       28%
   Interest
    expense        (214)       (2%)    (188)       (3%)      14%       14%
   Non-operating
    income, net      90         1%       33         1%      177%      178%
               --------  --------  --------  --------
 INCOME BEFORE
  PROVISION
  FOR INCOME
  TAXES           2,646        31%    2,023        35%       31%       32%
               --------  --------  --------  --------
   Provision
    for
    income
    taxes           776         9%      565        10%       37%       39%
               --------  --------  --------  --------
 NET INCOME    $  1,870        22% $  1,458        25%       28%       30%
               ========  ========  ========  ========
 EARNINGS PER
  SHARE:
   Basic       $   0.37            $   0.29
   Diluted     $   0.37            $   0.29

 WEIGHTED
  AVERAGE
  COMMON SHARES
  OUTSTANDING:
   Basic          5,044               5,010
   Diluted        5,117               5,064


(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, 2010, 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
    November 30, 2010 compared with the corresponding prior year period
    decreased our revenues, operating expenses and operating income, each
    by 1 percentage point.

(2) General and administrative expenses for the three months ended November
    30, 2010 included a benefit of $120 million related to the recovery of
    legal costs.

 *  Not meaningful











                            ORACLE CORPORATION

                     Q2 FISCAL 2011 FINANCIAL RESULTS
    RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1)
                  ($ in millions, except per share data)


                              Three Months Ended November 30,
                ----------------------------------------------------------
                  2010                2010      2009                2009
                  GAAP      Adj.    Non-GAAP    GAAP      Adj.    Non-GAAP
                --------  --------  --------  --------  --------  --------

 TOTAL REVENUES
  (3) (4)       $  8,582  $     67  $  8,649  $  5,858  $     14  $  5,872

 TOTAL SOFTWARE
  REVENUES (3)  $  5,644  $     22  $  5,666  $  4,900  $     14  $  4,914
     New
      software
      licenses     1,999         -     1,999     1,653         -     1,653
     Software
      license
      updates
      and
      product
      support
      (3)          3,645        22     3,667     3,247        14     3,261

 TOTAL HARDWARE
  SYSTEMS
  REVENUES (4)  $  1,753  $     45  $  1,798  $      -  $      -  $      -
     Hardware
      systems
      products     1,112         -     1,112         -         -         -
     Hardware
      systems
      support
      (4)            641        45       686         -         -         -

 TOTAL
  OPERATING
  EXPENSES      $  5,812  $   (969) $  4,843  $  3,680  $   (664) $  3,016
     Stock-based
      compensation
      (5)            119      (119)        -       104      (104)        -
     Amortization
      of
      intangible
      assets
      (6)            614      (614)        -       436      (436)        -
     Acquisition
      related and
      other           47       (47)        -        10       (10)        -
     Restructuring   189      (189)        -       114      (114)        -

 OPERATING
  INCOME        $  2,770  $  1,036  $  3,806  $  2,178  $    678  $  2,856

 OPERATING
  MARGIN %            32%                 44%       37%                 49%

 INCOME TAX
  EFFECTS (7)   $    776  $    274  $  1,050  $    565  $    175  $    740

 NET INCOME     $  1,870  $    762  $  2,632  $  1,458  $    503  $  1,961

 DILUTED
  EARNINGS PER
  SHARE         $   0.37            $   0.51  $   0.29            $   0.39

 DILUTED
  WEIGHTED
  AVERAGE
  COMMON SHARES
  OUTSTANDING      5,117         -     5,117     5,064         -     5,064



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

 TOTAL REVENUES
  (3) (4)             47%       47%       48%       49%

 TOTAL SOFTWARE
  REVENUES (3)        15%       15%       17%       17%
     New
      software
      licenses        21%       21%       23%       23%
     Software
      license
      updates
      and
      product
      support
      (3)             12%       12%       13%       14%

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

 TOTAL
  OPERATING
  EXPENSES            58%       61%       59%       62%
     Stock-based
      compensation
      (5)             14%        *        14%        *
     Amortization
      of
      intangible
      assets
      (6)             41%        *        41%        *
     Acquisition
      related and
      other          349%        *       284%        *
     Restructuring    66%        *        87%        *

 OPERATING
  INCOME              27%       33%       28%       35%

 OPERATING
  MARGIN %      (491) bp  (464) bp  (483) bp  (451) bp

 INCOME TAX
  EFFECTS (7)         37%       42%       39%       44%

 NET INCOME           28%       34%       30%       36%

 DILUTED
  EARNINGS PER
  SHARE               27%       33%       28%       35%

 DILUTED
  WEIGHTED
  AVERAGE
  COMMON SHARES
  OUTSTANDING          1%        1%        1%        1%



(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, 2010, 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 November 30, 2010, approximately $25 million, $19 million and $7
    million in estimated revenues related to assumed support software
    contracts will not be recognized for the remainder of fiscal 2011,
    fiscal 2012 and fiscal 2013, respectively, due to business combination
    accounting rules.

(4) As of November 30, 2010, approximately $42 million, $35 million and $11
    million in estimated revenues related to hardware systems support
    contracts will not be recognized for the remainder of 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
                          November 30, 2010          November 30, 2009
                      -------------------------- --------------------------
                        GAAP     Adj.   Non-GAAP   GAAP     Adj.   Non-GAAP
                      -------- -------  -------- -------- -------  --------
     Sales and
      marketing       $     19 $   (19) $      - $     20 $   (20) $      -
     Software license
      updates and
      product support        3      (3)        -        4      (4)        -
     Hardware systems
      products               1      (1)        -        -       -         -
     Hardware systems
      support                1      (1)        -        -       -         -
     Services                4      (4)        -        3      (3)        -
     Research and
      development           55     (55)        -       44     (44)        -
     General and
      administrative        36     (36)        -       33     (33)        -
                      -------- -------  -------- -------- -------  --------
        Subtotal           119    (119)        -      104    (104)        -
                      -------- -------  -------- -------- -------  --------
     Acquisition
      related and
      other                  5      (5)        -        -       -         -
                      -------- -------  -------- -------- -------  --------
        Total
         stock-based
         compensation $    124 $  (124) $      - $    104 $  (104) $      -
                      ======== =======  ======== ======== =======  ========

(6) Estimated future annual amortization expense related to intangible
    assets as of November 30, 2010 is as follows:

        Remainder of
         Fiscal 2011  $  1,175
        Fiscal 2012      2,157
        Fiscal 2013      1,788
        Fiscal 2014      1,449
        Fiscal 2015      1,065
        Fiscal 2016        575
        Thereafter         190
                      --------
    Total intangible
     assets subject
     to amortization     8,399
        In-process
         research and
         development       127
                      --------
          Total
           intangible
           assets,
           net        $  8,526
                      ========

(7) Income tax effects were calculated reflecting an effective GAAP tax
    rate of 29.3% and 27.9% in the second quarter of fiscal 2011 and 2010,
    respectively, and an effective non-GAAP tax rate of 28.5% and 27.4% in
    the second quarter of fiscal 2011 and 2010, respectively. The
    differences between our GAAP and non-GAAP tax rates in the second
    quarter of fiscal 2011 and fiscal 2010 were due to differences in
    jurisdictional tax rates and the related tax benefits attributable to
    our restructuring expenses in these periods.

 *  Not meaningful





                            ORACLE CORPORATION

              Q2 FISCAL 2011 YEAR TO DATE FINANCIAL RESULTS
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                  ($ in millions, except per share data)



                                                                 % Increase
                    Six Months Ended November 30,                    in
                --------------------------------------             Constant
                            % of                % of   % Increase  Currency
                  2010    Revenues    2009    Revenues   in US $     (1)
                --------  --------  --------  --------  --------  --------
 REVENUES
   New
    software
    licenses    $  3,284        21% $  2,681        25%       22%       24%
   Software
    license
    updates
    and
    product
    support        7,096        44%    6,364        58%       12%       13%
                --------  --------  --------  --------                     
     Software
      Revenues    10,380        65%    9,045        83%       15%       16%
                --------  --------  --------  --------
   Hardware
    systems
    products       2,190        13%        -         0%        *         *
   Hardware
    systems
    support        1,261         8%        -         0%        *         *
                --------  --------  --------  --------
     Hardware
      Systems
      Revenues     3,451        21%        -         0%        *         *
                --------  --------  --------  --------
   Services        2,253        14%    1,866        17%       21%       22%
                --------  --------  --------  --------

       Total
        Revenues  16,084       100%   10,911       100%       47%       49%
                --------  --------  --------  --------

 OPERATING
  EXPENSES
   Sales and
    marketing      2,864        18%    2,093        19%       37%       38%
   Software
    license
    updates
    and
    product
    support          615         4%      490         4%       26%       26%
   Hardware
    systems
    products       1,082         7%        -         0%        *         *
   Hardware
    systems
    support          656         4%        -         0%        *         *
   Services        1,865        11%    1,614        15%       16%       17%
   Research
    and
    development    2,222        14%    1,368        13%       62%       62%
   General and
    administr-
    ative (2)        428         3%      383         4%       12%       11%
   Amortization
    of intangible
    assets         1,217         7%      867         8%       40%       40%
   Acquisition
    related
    and other        130         1%       16         0%      705%      580%
   Restructuring     318         2%      162         1%       97%      116%
                --------  --------  --------  --------

       Total
        Operating
        Expenses  11,397        71%    6,993        64%       63%       64%
                --------  --------  --------  --------

 OPERATING
  INCOME           4,687        29%    3,918        36%       20%       20%
   Interest
    expense         (410)       (2%)    (368)       (3%)      12%       12%
   Non-operating
    income, net      165         1%       35         0%      383%      406%
                --------  --------  --------  --------
 INCOME BEFORE
  PROVISION FOR
  INCOME TAXES     4,442        28%    3,585        33%       24%       25%
                --------  --------  --------  --------
   Provision
    for income
    taxes          1,219         8%    1,003         9%       22%       13%
                --------  --------  --------  --------

 NET INCOME     $  3,223        20% $  2,582        24%       25%       30%
                ========  ========  ========  ========

 EARNINGS PER
  SHARE:
   Basic        $   0.64            $   0.52
   Diluted      $   0.63            $   0.51
 WEIGHTED
  AVERAGE
  COMMON SHARES
  OUTSTANDING:
   Basic           5,035               5,010
   Diluted         5,100               5,063


(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, 2010, 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 six months ended
    November 30, 2010 compared with the corresponding prior year period
    decreased our revenues by 2 percentage points and operating expenses by
    1 percentage point.

(2) General and administrative expenses for the six months ended November
    30, 2010 included a benefit of $120 million related to the recovery of
    legal costs.

 *  Not meaningful





                            ORACLE CORPORATION

              Q2 FISCAL 2011 YEAR TO DATE FINANCIAL RESULTS
    RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1)
                  ($ in millions, except per share data)


                              Six Months Ended November 30,
                ----------------------------------------------------------
                  2010                2010      2009                2009
                  GAAP      Adj.    Non-GAAP    GAAP      Adj.    Non-GAAP
                --------  --------  --------  --------  --------  --------

 TOTAL REVENUES
  (3) (4)       $ 16,084  $    153  $ 16,237  $ 10,911  $     23  $ 10,934

 TOTAL SOFTWARE
  REVENUES (3)  $ 10,380  $     47  $ 10,427  $  9,045  $     23  $  9,068
     New
      software
      licenses     3,284         -     3,284     2,681         -     2,681
     Software
      license
      updates
      and
      product
      support
      (3)          7,096        47     7,143     6,364        23     6,387

 TOTAL HARDWARE
  SYSTEMS
  REVENUES (4)  $  3,451  $    106  $  3,557  $      -  $      -  $      -
     Hardware
      systems
      products     2,190         -     2,190         -         -         -
     Hardware
      systems
      support
      (4)          1,261       106     1,367         -         -         -

 TOTAL
  OPERATING
  EXPENSES      $ 11,397  $ (1,913) $  9,484  $  6,993  $ (1,233) $  5,760
     Stock-based
      compensation
      (5)            248      (248)        -       188      (188)        -
     Amortization
      of
      intangible
      assets
      (6)          1,217    (1,217)        -       867      (867)        -
     Acquisition
      related and
      other          130      (130)        -        16       (16)        -
     Restructuring   318      (318)        -       162      (162)        -

 OPERATING
  INCOME        $  4,687  $  2,066  $  6,753  $  3,918  $  1,256  $  5,174

 OPERATING
  MARGIN %            29%                 42%       36%                 47%

 INCOME TAX
  EFFECTS (7)   $  1,219  $    528  $  1,747  $  1,003  $    337  $  1,340

 NET INCOME     $  3,223  $  1,538  $  4,761  $  2,582  $    919  $  3,501

 DILUTED
  EARNINGS PER
  SHARE         $   0.63            $   0.93  $   0.51            $   0.69

 DILUTED
  WEIGHTED
  AVERAGE
  COMMON SHARES
  OUTSTANDING      5,100         -     5,100     5,063         -     5,063




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

 TOTAL REVENUES
  (3) (4)             47%       48%       49%       50%

 TOTAL SOFTWARE
  REVENUES (3)        15%       15%       16%       16%
     New
      software
      licenses        22%       22%       24%       24%
     Software
      license
      updates
      and
      product
      support
      (3)             12%       12%       13%       13%

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

 TOTAL
  OPERATING
  EXPENSES            63%       65%       64%       66%
     Stock-based
      compensation
      (5)             32%        *        32%        *
     Amortization
      of
      intangible
      assets
      (6)             40%        *        40%        *
     Acquisition
      related and
      other          705%        *       580%        *
     Restructuring    97%        *       116%        *

 OPERATING
  INCOME              20%       31%       20%       32%

 OPERATING
  MARGIN %      (677) bp  (572) bp  (671) bp  (566) bp

 INCOME TAX
  EFFECTS (7)         22%       30%       13%       32%

 NET INCOME           25%       36%       30%       38%

 DILUTED
  EARNINGS PER
  SHARE               24%       35%       29%       37%

 DILUTED
  WEIGHTED
  AVERAGE
  COMMON SHARES
  OUTSTANDING          1%        1%        1%        1%


(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, 2010, 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 November 30, 2010, approximately $25 million, $19 million and $7
    million in estimated revenues related to assumed support software
    contracts will not be recognized for the remainder of fiscal 2011,
    fiscal 2012 and fiscal 2013, respectively, due to business combination
    accounting rules.

(4) As of November 30, 2010, approximately $42 million, $35 million and $11
    million in estimated revenues related to hardware systems support
    contracts will not be recognized for the remainder of 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:

                          Six Months Ended           Six Months Ended
                          November 30, 2010          November 30, 2009
                      -------------------------- --------------------------
                        GAAP     Adj.   Non-GAAP   GAAP     Adj.   Non-GAAP
                      -------- -------  -------- -------- -------  --------
    Sales and
     marketing        $     42 $   (42) $      - $     36 $   (36) $      -
    Software license
     updates and
     product support         8      (8)        -        8      (8)        -
    Hardware systems
     products                2      (2)        -        -       -         -
    Hardware systems
     support                 2      (2)        -        -       -         -
    Services                 8      (8)        -        6      (6)        -
    Research and
     development           114    (114)        -       76     (76)        -
    General and
     administrative         72     (72)        -       62     (62)        -
                      -------- -------  -------- -------- -------  --------
        Subtotal           248    (248)        -      188    (188)        -
                      -------- -------  -------- -------- -------  --------
    Acquisition
     related and
     other                   6      (6)        -        -       -         -
                      -------- -------  -------- -------- -------  --------
        Total
         stock-based
         compensation $    254 $  (254) $      - $    188 $  (188) $      -
                      ======== =======  ======== ======== =======  ========


(6) Estimated future annual amortization expense related to intangible
    assets as of November 30, 2010 is as follows:

        Remainder of
         Fiscal 2011  $  1,175
        Fiscal 2012      2,157
        Fiscal 2013      1,788
        Fiscal 2014      1,449
        Fiscal 2015      1,065
        Fiscal 2016        575
        Thereafter         190
                      --------
    Total intangible
     assets subject
     to amortization     8,399
        In-process
         research and
         development       127
                      --------
          Total
           intangible
           assets,
           net        $  8,526
                      ========

(7) Income tax effects were calculated reflecting an effective GAAP tax
    rate of 27.4% and 28.0% in the first half of fiscal 2011 and 2010,
    respectively, and an effective non-GAAP tax rate of 26.8% and 27.7% in
    the first half of fiscal 2011 and 2010, respectively. The differences
    between our GAAP and non-GAAP tax rates in the first half of fiscal
    2011 and fiscal 2010 were due to differences in jurisdictional tax
    rates and the related tax benefits attributable to our restructuring
    expenses in these periods.

 *  Not meaningful





                            ORACLE CORPORATION

                     Q2 FISCAL 2011 FINANCIAL RESULTS
                  CONDENSED CONSOLIDATED BALANCE SHEETS
                              ($ in millions)


                                                  November 30,   May 31,
                                                      2010         2010
                                                  ------------ ------------
 ASSETS

   Current Assets:
     Cash and cash equivalents                    $     10,420 $      9,914
     Marketable securities                              14,425        8,555
     Trade receivables, net                              4,406        5,585
     Inventories                                           236          259
     Deferred tax assets                                 1,219        1,159
     Prepaid expenses and other current assets           2,017        1,532
                                                  ------------ ------------
       Total Current Assets                             32,723       27,004

   Non-Current Assets:
     Property, plant and equipment, net                  2,870        2,763
     Intangible assets, net                              8,526        9,321
     Goodwill                                           20,889       20,425
     Deferred tax assets                                 1,220        1,267
     Other assets                                        1,015          798
                                                  ------------ ------------
       Total Non-Current Assets                         34,520       34,574
                                                  ------------ ------------

 TOTAL ASSETS                                     $     67,243 $     61,578
                                                  ============ ============

 LIABILITIES AND EQUITY

   Current Liabilities:
     Notes payable, current and other current
      borrowings                                  $      2,255 $      3,145
     Accounts payable                                      762          775
     Accrued compensation and related benefits           1,642        1,895
     Deferred revenues                                   5,742        5,900
     Other current liabilities                           2,935        2,976
                                                  ------------ ------------
       Total Current Liabilities                        13,336       14,691

   Non-Current Liabilities:
     Notes payable and other non-current
      borrowings                                        14,780       11,510
     Income taxes payable                                2,791        2,695
     Deferred tax liabilities                              350          424
     Other non-current liabilities                       1,136        1,059
                                                  ------------ ------------

       Total Non-Current Liabilities                    19,057       15,688

   Equity                                               34,850       31,199
                                                  ------------ ------------
 TOTAL LIABILITIES AND EQUITY                     $     67,243 $     61,578
                                                  ============ ============





                            ORACLE CORPORATION

                     Q2 FISCAL 2011 FINANCIAL RESULTS
              CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                              ($ in millions)


                                                       Six Months Ended
                                                         November 30,
                                                   -----------------------
                                                      2010         2009
                                                   ----------   ----------
Cash Flows From Operating Activities:
  Net income                                       $    3,223   $    2,582
  Adjustments to reconcile net income to net
   cash provided by operating activities:
    Depreciation                                          194          123
    Amortization of intangible assets                   1,217          867
    Deferred income taxes                                 (76)        (216)
    Stock-based compensation                              254          188
    Tax benefits on the exercise of stock options
     and vesting of restricted stock-based awards         142           71
    Excess tax benefits on the exercise of stock
     options and vesting of restricted stock-based
     awards                                               (86)         (42)
    Other, net                                             24           56
    Changes in operating assets and liabilities,
     net of effects from acquisitions:
      Decrease in trade receivables, net                1,343        1,437
      Decrease in inventories                              25            -
      Decrease in prepaid expenses and other assets       280          235
      Decrease in accounts payable and other
       liabilities                                       (620)        (523)
      (Decrease) increase in income taxes payable        (613)          59
      Decrease in deferred revenues                      (546)        (448)
                                                   ----------   ----------
        Net cash provided by operating activities       4,761        4,389
                                                   ----------   ----------
Cash Flows From Investing Activities:
  Purchases of marketable securities and other
   investments                                        (16,802)      (6,185)
  Proceeds from maturities and sales of marketable
   securities and other investments                    11,153        4,088
  Acquisitions, net of cash acquired                     (806)        (392)
  Capital expenditures                                   (239)        (100)
                                                   ----------   ----------
        Net cash used for investing activities         (6,694)      (2,589)
                                                   ----------   ----------
Cash Flows From Financing Activities:
  Payments for repurchases of common stock               (504)        (496)
  Proceeds from issuances of common stock                 734          371
  Payment of dividends to stockholders                   (504)        (501)
  Proceeds from borrowings, net of issuance costs       3,204        4,461
  Repayments of borrowings                               (890)           -
  Excess tax benefits on the exercise of stock
   options and vesting of restricted
   stock-based awards                                      86           42
  Distributions to noncontrolling interests               (38)         (34)
                                                   ----------   ----------
        Net cash provided by financing activities       2,088        3,843
                                                   ----------   ----------
Effect of exchange rate changes on cash
 and cash equivalents                                     351          281
                                                   ----------   ----------
Net increase in cash and cash equivalents                 506        5,924
                                                   ----------   ----------
Cash and cash equivalents at beginning of period        9,914        8,995
                                                   ----------   ----------
Cash and cash equivalents at end of period         $   10,420   $   14,919
                                                   ==========   ==========





                            ORACLE CORPORATION
                     Q2 FISCAL 2011 FINANCIAL RESULTS
                 FREE CASH FLOW - TRAILING 4-QUARTERS (1)
                              ($ in millions)


                       Fiscal 2010                     Fiscal 2011
             ------------------------------  ------------------------------
               Q1      Q2      Q3      Q4      Q1      Q2      Q3      Q4
             ------  ------  ------  ------  ------  ------  ------  ------

GAAP
 Operating
 Cash Flow   $8,753  $8,654  $8,178  $8,681  $8,760  $9,053

Capital
 Expenditures
 (2)           (261)   (230)   (199)   (230)   (293)   (369)
             ------  ------  ------  ------  ------  ------  ------  ------

Free Cash
 Flow        $8,492  $8,424  $7,979  $8,451  $8,467  $8,684
             ======  ======  ======  ======  ======  ======  ======  ======

% Growth over
 prior year      14%     11%      0%      9%      0%      3%

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

GAAP Net
 Income      $5,640  $5,802  $5,663  $6,135  $6,363  $6,776

Free Cash
 Flow as a
 % of Net
 Income         151%    145%    141%    138%    133%    128%


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

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





                            ORACLE CORPORATION
                     Q2 FISCAL 2011 FINANCIAL RESULTS
         SUPPLEMENTAL ANALYSIS OF GAAP REVENUES AND HEADCOUNT (1)
                              ($ in millions)


                                              Fiscal 2010
                              -------------------------------------------
                                Q1       Q2       Q3       Q4      TOTAL
                              -------  -------  -------  -------  -------
REVENUES
  New software licenses       $ 1,028  $ 1,653  $ 1,718  $ 3,135  $ 7,533
  Software license updates
   and product support          3,117    3,247    3,297    3,431   13,092
                              -------  -------  -------  -------  -------
    Software Revenues           4,145    4,900    5,015    6,566   20,625

  Hardware systems products         -        -      273    1,233    1,506
  Hardware systems support          -        -      185      598      784
                              -------  -------  -------  -------  -------
    Hardware Systems Revenues       -        -      458    1,831    2,290

  Consulting                      663      692      651      713    2,720
  On Demand                       180      188      211      295      874
  Education                        66       78       69      100      311
                              -------  -------  -------  -------  -------
    Services Revenues             909      958      931    1,108    3,905

                              -------  -------  -------  -------  -------
        Total Revenues        $ 5,054  $ 5,858  $ 6,404  $ 9,505  $26,820
                              =======  =======  =======  =======  =======

AS REPORTED REVENUE GROWTH RATES
  New software licenses           (17%)      2%      13%      14%       6%
  Software license updates
   and product support              6%      14%      13%      12%      11%
    Software Revenues              (1%)      9%      13%      13%       9%

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

  Consulting                      (23%)    (18%)    (14%)     (9%)    (16%)
  On Demand                        (8%)     (1%)     10%      45%      12%
  Education                       (34%)    (22%)     (4%)     26%     (11%)
    Services Revenues             (22%)    (15%)     (9%)      4%     (11%)

        Total Revenues             (5%)      4%      17%      39%      15%

CONSTANT CURRENCY GROWTH
 RATES (2)
  New software licenses           (14%)     (5%)      8%      15%       4%
  Software license updates
   and product support             11%       9%       8%      11%      10%
    Software Revenues               4%       4%       8%      13%       8%

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

  Consulting                      (19%)    (22%)    (18%)    (10%)    (17%)
  On Demand                        (3%)     (4%)      6%      44%      11%
  Education                       (30%)    (26%)     (8%)     24%     (12%)
    Services Revenues             (18%)    (19%)    (13%)      3%     (12%)

        Total Revenues             (1%)      0%      12%      38%      14%

GEOGRAPHIC REVENUES

REVENUES

  Americas                    $ 2,671  $ 2,979  $ 3,284  $ 4,886  $13,819
  Europe, Middle East
   & Africa                     1,642    1,976    2,167    3,153    8,938
  Asia Pacific                    741      903      953    1,466    4,063
                              -------  -------  -------  -------  -------
        Total Revenues        $ 5,054  $ 5,858  $ 6,404  $ 9,505  $26,820
                              =======  =======  =======  =======  =======

HEADCOUNT

GEOGRAPHIC AREA
  Americas                     32,034   31,849   44,554   43,968
  Europe, Middle East
   & Africa                    16,839   16,491   23,566   23,040
  Asia Pacific                 35,766   35,026   38,372   37,561
                              -------  -------  -------  -------  -------
        Total Company          84,639   83,366  106,492  104,569
                              =======  =======  =======  =======  =======



                                              Fiscal 2011
                              -------------------------------------------
                                Q1       Q2       Q3       Q4      TOTAL
                              -------  -------  -------  -------  -------
REVENUES
  New software licenses       $ 1,286  $ 1,999                    $ 3,284
  Software license updates
   and product support          3,450    3,645                      7,096
                              -------  -------  -------  -------  -------
    Software Revenues           4,736    5,644                     10,380

  Hardware systems products     1,079    1,112                      2,190
  Hardware systems support        619      641                      1,261
                              -------  -------  -------  -------  -------
    Hardware Systems Revenues   1,698    1,753                      3,451

  Consulting                      666      738                      1,404
  On Demand                       321      350                        671
  Education                        81       97                        178
                              -------  -------  -------  -------  -------
    Services Revenues           1,068    1,185                      2,253

                              -------  -------  -------  -------  -------
        Total Revenues        $ 7,502  $ 8,582                    $16,084
                              =======  =======  =======  =======  =======

AS REPORTED REVENUE GROWTH RATES
  New software licenses            25%      21%                        22%
  Software license updates and
   product support                 11%      12%                        12%
    Software Revenues              14%      15%                        15%

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

  Consulting                        0%       7%                         4%
  On Demand                        78%      86%                        82%
  Education                        24%      25%                        25%
    Services Revenues              18%      24%                        21%

        Total Revenues             48%      47%                        47%

CONSTANT CURRENCY GROWTH
 RATES (2)
  New software licenses            25%      23%                        24%
  Software license updates
   and product support             12%      13%                        13%
    Software Revenues              15%      17%                        16%

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

  Consulting                        1%       8%                         5%
  On Demand                        80%      86%                        83%
  Education                        24%      26%                        25%
    Services Revenues              18%      25%                        22%

        Total Revenues             49%      48%                        49%

GEOGRAPHIC REVENUES

REVENUES
  Americas                    $ 3,904  $ 4,452                    $ 8,356
  Europe, Middle East
   & Africa                     2,381    2,738                      5,119
  Asia Pacific                  1,217    1,392                      2,609
                              -------  -------  -------  -------  -------
        Total Revenues        $ 7,502  $ 8,582                    $16,084
                              =======  =======  =======  =======  =======

HEADCOUNT

GEOGRAPHIC AREA
  Americas                     44,494   44,815                     44,815
  Europe, Middle East
   & Africa                    22,886   22,690                     22,690
  Asia Pacific                 37,856   38,225                     38,225
                              -------  -------  -------  -------  -------
        Total Company         105,236  105,730                    105,730
                              =======  =======  =======  =======  =======


(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, 2010 and 2009 for the fiscal 2011
    and fiscal 2010 constant currency growth rate calculations presented,
    respectively, rather than the actual exchange rates in effect during
    the respective periods.

 *  Not meaningful





                            ORACLE CORPORATION
                     Q2 FISCAL 2011 FINANCIAL RESULTS
        SUPPLEMENTAL TOTAL SOFTWARE PRODUCT REVENUE ANALYSIS (1)
                              ($ in millions)


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

  DATABASE & MIDDLEWARE
   REVENUES
    New software licenses     $   711  $ 1,175  $ 1,241  $ 2,280  $ 5,406
    Software license updates
     and product support        2,065    2,131    2,191    2,309    8,696
                              -------  -------  -------  -------  -------
       Database and Middleware
        Revenues              $ 2,776  $ 3,306  $ 3,432  $ 4,589  $14,102
                              =======  =======  =======  =======  =======

  AS REPORTED GROWTH RATES
    New software licenses         (22%)      1%      11%      18%       6%
    Software license updates
     and product support            9%      16%      14%      15%      14%
       Database and Middleware
        Revenues                   (1%)     10%      13%      16%      10%

  CONSTANT CURRENCY GROWTH
   RATES (2)
    New software licenses         (19%)     (5%)      5%      18%       4%
    Software license updates
     and product support           14%      12%       9%      13%      12%
       Database and Middleware
        Revenues                    4%       5%       8%      16%       9%

  APPLICATIONS REVENUES
    New software licenses     $   317  $   478  $   477  $   855  $ 2,127
    Software license updates
     and product support        1,052    1,116    1,106    1,122    4,396
                              -------  -------  -------  -------  -------
       Applications Revenues  $ 1,369  $ 1,594  $ 1,583  $ 1,977  $ 6,523
                              =======  =======  =======  =======  =======

  AS REPORTED GROWTH RATES
    New software licenses          (4%)      2%      21%       6%       6%
    Software license updates
     and product support            1%      10%      10%       8%       7%
       Applications Revenues        0%       7%      13%       7%       7%

  CONSTANT CURRENCY GROWTH
   RATES (2)
    New software licenses           0%      (3%)     15%       7%       5%
    Software license updates
     and product support            6%       6%       5%       6%       6%
       Applications Revenues        4%       3%       8%       6%       5%



                                              Fiscal 2011
                              -------------------------------------------
                                 Q1       Q2       Q3       Q4     TOTAL
                              -------  -------  -------  -------  -------
SOFTWARE REVENUES

  DATABASE & MIDDLEWARE
   REVENUES
    New software licenses     $   937  $ 1,420                    $ 2,356
    Software license updates
     and product support        2,316    2,443                      4,760
                              -------  -------  -------  -------  -------
       Database and Middleware
        Revenues              $ 3,253  $ 3,863                    $ 7,116
                              =======  =======  =======  =======  =======

  AS REPORTED GROWTH RATES
    New software licenses          32%      21%                        25%
    Software license updates
     and product support           12%      15%                        13%
       Database and Middleware
        Revenues                   17%      17%                        17%

  CONSTANT CURRENCY GROWTH
   RATES (2)
    New software licenses          32%      23%                        27%
    Software license updates
     and product support           13%      16%                        15%
       Database and Middleware
        Revenues                   18%      18%                        18%

  APPLICATIONS REVENUES
    New software licenses     $   349  $   579                    $   928
    Software license updates
     and product support        1,134    1,202                      2,336
                              -------  -------  -------  -------  -------
       Applications Revenues  $ 1,483  $ 1,781                    $ 3,264
                              =======  =======  =======  =======  =======

  AS REPORTED GROWTH RATES
    New software licenses          10%      21%                        17%
    Software license updates
     and product support            8%       8%                         8%
       Applications Revenues        8%      12%                        10%

  CONSTANT CURRENCY GROWTH
   RATES (2)
    New software licenses          10%      22%                        17%
    Software license updates
     and product support            9%       9%                         9%
       Applications Revenues        9%      13%                        11%


(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, 2010 and 2009 for the fiscal 2011
    and fiscal 2010 constant currency growth rate calculations presented,
    respectively, rather than the actual exchange rates in effect during
    the respective periods.





                            ORACLE CORPORATION
                     Q2 FISCAL 2011 FINANCIAL RESULTS
    SUPPLEMENTAL GEOGRAPHIC NEW SOFTWARE LICENSE AND HARDWARE SYSTEMS
                      PRODUCTS REVENUES ANALYSIS (1)
                              ($ in millions)


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

AMERICAS

  Database & Middleware       $   310  $   492  $   540  $ 1,123  $ 2,465
  Applications                    185      286      283      485    1,239
                              -------  -------  -------  -------  -------
    New Software License
     Revenues                 $   495  $   778  $   823  $ 1,608  $ 3,704
                              -------  -------  -------  -------  -------
  Hardware Systems Products
   Revenues                   $     -  $     -  $   131  $   617  $   747
                              =======  =======  =======  =======  =======

AS REPORTED GROWTH RATES
  Database & Middleware           (12%)      4%      20%      34%      17%
  Applications                      2%       2%      26%      16%      12%
    New Software License
     Revenues                      (7%)      4%      22%      28%      15%
  Hardware Systems Products
   Revenues                         *        *        *        *        *

CONSTANT CURRENCY GROWTH
 RATES (2)
  Database & Middleware           (11%)      2%      16%      32%      15%
  Applications                      6%       1%      23%      15%      11%
    New Software License
     Revenues                      (5%)      1%      18%      26%      14%
  Hardware Systems Products
   Revenues                         *        *        *        *        *

EUROPE / MIDDLE EAST / AFRICA

  Database & Middleware       $   224  $   429  $   456  $   751  $ 1,859
  Applications                     90      119      134      261      604
                              -------  -------  -------  -------  -------
    New Software License
     Revenues                 $   314  $   548  $   590  $ 1,012  $ 2,463
                              -------  -------  -------  -------  -------
  Hardware Systems Products
   Revenues                   $     -  $     -  $    95  $   390  $   485
                              =======  =======  =======  =======  =======

AS REPORTED GROWTH RATES
  Database & Middleware           (31%)     (1%)      2%      (1%)     (5%)
  Applications                     (5%)     (6%)      7%      (7%)     (4%)
    New Software License
     Revenues                     (25%)     (2%)      3%      (3%)     (5%)
  Hardware Systems Products
   Revenues                         *        *        *        *        *

CONSTANT CURRENCY GROWTH
 RATES (2)
  Database & Middleware           (26%)    (10%)     (3%)      6%      (5%)
  Applications                      3%     (14%)      1%      (2%)     (3%)
    New Software License
     Revenues                     (20%)    (11%)     (2%)      4%      (4%)
  Hardware Systems Products
   Revenues                         *        *        *        *        *

ASIA PACIFIC

  Database & Middleware       $   177  $   254  $   245  $   406  $ 1,082
  Applications                     42       73       60      109      284
                              -------  -------  -------  -------  -------
    New Software License
     Revenues                 $   219  $   327  $   305  $   515  $ 1,366
                              -------  -------  -------  -------  -------
  Hardware Systems Products
   Revenues                   $     -  $     -  $    47  $   226  $   274
                              =======  =======  =======  =======  =======

AS REPORTED GROWTH RATES
  Database & Middleware           (22%)      0%       9%      19%       3%
  Applications                    (24%)     17%      29%       2%       5%
    New Software License
     Revenues                     (22%)      3%      12%      15%       4%
  Hardware Systems Products
   Revenues                         *        *        *        *        *

CONSTANT CURRENCY GROWTH
 RATES (2)
  Database & Middleware           (22%)    (10%)      1%      14%      (3%)
  Applications                    (23%)      2%      16%      (3%)     (2%)
    New Software License
     Revenues                     (22%)     (8%)      4%      10%      (3%)
  Hardware Systems Products
   Revenues                         *        *        *        *        *

TOTAL COMPANY

  Database & Middleware       $   711  $ 1,175  $ 1,241  $ 2,280  $ 5,406
  Applications                    317      478      477      855    2,127
                              -------  -------  -------  -------  -------
    New Software License
     Revenues                 $ 1,028  $ 1,653  $ 1,718  $ 3,135  $ 7,533
                              -------  -------  -------  -------  -------
  Hardware Systems Products
   Revenues                   $     -  $     -  $   273  $ 1,233  $ 1,506
                              =======  =======  =======  =======  =======

AS REPORTED GROWTH RATES
  Database & Middleware         (22%)        1%      11%      18%       6%
  Applications                   (4%)        2%      21%       6%       6%
    New Software License
     Revenues                   (17%)        2%      13%      14%       6%
  Hardware Systems Products
   Revenues                         *        *        *        *        *

CONSTANT CURRENCY GROWTH
 RATES (2)
  Database & Middleware         (19%)     (5%)        5%      18%       4%
  Applications                      0%    (3%)       15%       7%       5%
    New Software License
     Revenues                   (14%)     (5%)        8%      15%       4%
  Hardware Systems Products
   Revenues                         *        *        *        *        *



                                              Fiscal 2011
                              -------------------------------------------
                                Q1       Q2       Q3       Q4      TOTAL
                              -------  -------  -------  -------  -------

AMERICAS

  Database & Middleware       $   446  $   671                    $ 1,116
  Applications                    212      359                        571
                              -------  -------  -------  -------  -------
    New Software License
     Revenues                 $   658  $ 1,030                    $ 1,687
                              -------  -------  -------  -------  -------
  Hardware Systems Products
   Revenues                   $   543  $   602                    $ 1,144
                              =======  =======  =======  =======  =======

AS REPORTED GROWTH RATES
  Database & Middleware            44%      36%                        39%
  Applications                     14%      26%                        21%
    New Software License
     Revenues                      33%      32%                        33%
  Hardware Systems Products
   Revenues                         *        *                          *

CONSTANT CURRENCY GROWTH
 RATES (2)
  Database & Middleware            43%      36%                        39%
  Applications                     14%      26%                        21%
    New Software License
     Revenues                      32%      32%                        32%
  Hardware Systems Products
   Revenues                         *        *                          *

EUROPE / MIDDLE EAST / AFRICA

  Database & Middleware       $   279  $   426                    $   705
  Applications                     73      148                        220
                              -------  -------  -------  -------  -------
    New Software License
     Revenues                 $   352  $   574                    $   925
                              -------  -------  -------  -------  -------
  Hardware Systems Products
   Revenues                   $   338  $   329                    $   667
                              =======  =======  =======  =======  =======

AS REPORTED GROWTH RATES
  Database & Middleware            25%      (1%)                        8%
  Applications                    (19%)     23%                         5%
    New Software License
     Revenues                      12%       5%                         7%
  Hardware Systems Products
   Revenues                         *        *                          *

CONSTANT CURRENCY GROWTH
 RATES (2)
  Database & Middleware            32%       7%                        16%
  Applications                    (16%)     31%                        10%
    New Software License
     Revenues                      18%      12%                        14%
  Hardware Systems Products
   Revenues                         *        *                          *

ASIA PACIFIC

  Database & Middleware       $   212  $   323                    $   535
  Applications                     64       72                        137
                              -------  -------  -------  -------  -------
    New Software License
     Revenues                 $   276  $   395                    $   672
                              -------  -------  -------  -------  -------
  Hardware Systems Products
   Revenues                   $   198  $   181                    $   379
                              =======  =======  =======  =======  =======

AS REPORTED GROWTH RATES
  Database & Middleware            19%      27%                        24%
  Applications                     54%      (1%)                       19%
    New Software License
     Revenues                      26%      21%                        23%
  Hardware Systems Products
   Revenues                         *        *                          *

CONSTANT CURRENCY GROWTH
 RATES (2)
  Database & Middleware            13%      22%                        18%
  Applications                     47%     (5%)                        15%
    New Software License
     Revenues                      19%      16%                        17%
  Hardware Systems Products
   Revenues                         *        *                          *

TOTAL COMPANY

  Database & Middleware       $   937  $ 1,420                    $ 2,356
  Applications                    349      579                        928
                              -------  -------  -------  -------  -------
    New Software License
     Revenues                 $ 1,286  $ 1,999                    $ 3,284
                              -------  -------  -------  -------  -------
  Hardware Systems Products
   Revenues                   $ 1,079  $ 1,112                    $ 2,190
                              =======  =======  =======  =======  =======

AS REPORTED GROWTH RATES
  Database & Middleware            32%      21%                        25%
  Applications                     10%      21%                        17%
    New Software License
     Revenues                      25%      21%                        22%
  Hardware Systems Products
   Revenues                         *        *                          *

CONSTANT CURRENCY GROWTH
 RATES (2)
  Database & Middleware            32%      23%                        27%
  Applications                     10%      22%                        17%
    New Software License
     Revenues                      25%      23%                        24%
  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, 2010 and 2009 for the fiscal 2011
    and fiscal 2010 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
                     Q2 FISCAL 2011 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 values 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.

  • 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 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
    1.408.409.4450
    Email Contact

    Deborah Hellinger
    Oracle Corporate Communications
    1.212.508.7935
    Email Contact