SOURCE: Oracle Corporation

Oracle Corporation

March 24, 2011 16:00 ET

Oracle Reports Q3 GAAP EPS Up 75% to 41 Cents; Non-GAAP EPS Up 40% to 54 Cents

Software New License Sales Up 29%, Quarterly Dividend Increased 20%

REDWOOD SHORES, CA--(Marketwire - March 24, 2011) - Oracle Corporation (NASDAQ: ORCL) today announced fiscal 2011 Q3 GAAP total revenues were up 37% to $8.8 billion, while non-GAAP total revenues were up 36% to $8.8 billion. Both GAAP and non-GAAP new software license revenues were up 29% to $2.2 billion. GAAP software license updates and product support revenues were up 13% to $3.7 billion, while non-GAAP software license updates and product support revenues were up 13% to $3.8 billion. Both GAAP and non-GAAP hardware systems products revenues were $1.0 billion. GAAP operating income was up 62% to $3.0 billion, and GAAP operating margin was 34%. Non-GAAP operating income was up 35% to $3.9 billion, and non-GAAP operating margin was 44%. GAAP net income was up 78% to $2.1 billion, while non-GAAP net income was up 42% to $2.8 billion. GAAP earnings per share were $0.41, up 75% compared to last year while non-GAAP earnings per share were up 40% to $0.54. GAAP operating cash flow on a trailing twelve-month basis was $9.9 billion.

"Strong revenue growth coupled with disciplined business management enabled an increase in non-GAAP operating margin to 44% and earnings per share to $0.54," said Oracle President, Safra Catz. "Our hardware product gross margins increased to 55% in the quarter so we are now completely confident that we will exceed the $1.5 billion profit goal we set for the overall Sun business for the current fiscal year."

"Q3 performance was broad based with all geographies reporting revenue growth of 30% or higher," said Oracle President, Mark Hurd. "The sequential revenue growth for Exadata and Exalogic was up over 50%. And we expect to see an even higher growth rate for these two game changing technologies in Q4."

"In Q3 we signed several large hardware and software deals with some of the biggest names in cloud computing," said Oracle CEO, Larry Ellison. "For example, Salesforce.com's new multi-year contract enables them to continue building virtually all of their cloud services on top of the Oracle database and Oracle middleware. Oracle is the technology that powers the cloud."

In addition, Oracle also announced that its Board of Directors declared a quarterly cash dividend of $0.06 per share of outstanding common stock, reflecting a 20% increase over the previous quarter's dividend of $0.05. This increased dividend will be paid to stockholders of record as of the close of business on April 13, 2011, with a payment date of May 4, 2011.

Q3 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 (877) 612-6725 or (912) 312-0950, Passcode: 7536150. 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 exceeding our profit goals for the Sun business and the higher growth rates for Exadata and Exalogic in Q4, 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 and the current situation in Japan caused by the recent earthquake and resulting tsunami, 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, risks relating to compliance with international and U.S. laws that apply to our international operations and risks to the sales of our products and services and supply chain operations caused by the recent earthquake and tsunami in Japan. (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 March 24, 2011. Oracle undertakes no duty to update any statement in light of new information or future events.


                            ORACLE CORPORATION

                     Q3 FISCAL 2011 FINANCIAL RESULTS
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                  ($ in millions, except per share data)


                                                                % Increase
                 Three Months Ended February 28,                (Decrease)
              ------------------------------------  % Increase      in
                         % of               % of    (Decrease)   Constant
                2011   Revenues    2010   Revenues    in US $  Currency (1)
              -------  --------  -------  --------  ----------  ----------
REVENUES
  New software
   licenses   $ 2,214     25%    $ 1,718     27%         29%         27%
  Software
   license
   updates and
   product
   support      3,740     43%      3,297     51%         13%         12%
              -------  --------  -------  --------
    Software
     Revenues   5,954     68%      5,015     78%         19%         17%
              -------  --------  -------  --------
  Hardware
   systems
   products     1,035     12%        273      4%        279%        274%
  Hardware
   systems
   support        629      7%        185      3%        239%        234%
              -------  --------  -------  --------
    Hardware
     Systems
     Revenues   1,664     19%        458      7%        263%        258%
              -------  --------  -------  --------
  Services      1,146     13%        931     15%         23%         21%
              -------  --------  -------  --------
      Total
       Revenues 8,764    100%      6,404    100%         37%         35%
              -------  --------  -------  --------

OPERATING
 EXPENSES
  Sales and
   marketing    1,618     19%      1,241     19%         30%         29%
  Software
   license
   updates and
   product
   support        299      3%        281      4%          6%          5%
  Hardware
   systems
   products       465      6%        206      3%        126%        115%
  Hardware
   systems
   support        294      3%        116      2%        154%        144%
  Services        954     11%        816     13%         17%         16%
   Research
   and
   development  1,127     13%        823     13%         37%         36%
  General and
   adminis-
   trative        286      3%        236      4%         21%         20%
  Amortization
   of intangi-
   ble assets     612      7%        502      8%         22%         22%
  Acquisition
   related and
   other           30      0%         34      0%        (12%)       (16%)
  Restructuring    92      1%        306      5%        (70%)       (73%)
              -------  --------  -------  --------
      Total
       Opera-
       ting
       Expenses 5,777     66%      4,561     71%         27%         25%
              -------  --------  -------  --------

OPERATING
 INCOME         2,987     34%      1,843     29%         62%         61%
  Interest
   expense       (204)    (2%)      (186)    (3%)        10%         10%
  Non-operating
   income
   (expense),
   net             16      0%        (75)    (1%)       121%        120%
              -------  --------  -------  --------

INCOME BEFORE
 PROVISION FOR
 INCOME TAXES   2,799     32%      1,582     25%         77%         77%
              -------  --------  -------  --------
  Provision for
   income taxes   683      8%        393      6%         74%         74%
              -------  --------  -------  --------

NET INCOME    $ 2,116     24%    $ 1,189     19%         78%         78%
              =======  ========  =======  ========

EARNINGS PER
 SHARE:
  Basic       $  0.42            $  0.24
  Diluted     $  0.41            $  0.23

WEIGHTED
 AVERAGE
 COMMON
 SHARES
 OUTSTANDING:
  Basic         5,057              5,015
  Diluted       5,149              5,076


(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, 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
    February 28, 2011 compared with the corresponding prior year period
    increased our revenues and operating expenses each by 2 percentage
    points and our operating income by 1 percentage point.





                            ORACLE CORPORATION

                     Q3 FISCAL 2011 FINANCIAL RESULTS
    RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1)
                  ($ in millions, except per share data)


                                 Three Months Ended February 28,
                      ----------------------------------------------------
                        2011              2011     2010              2010
                        GAAP     Adj.   Non-GAAP   GAAP     Adj.   Non-GAAP
                      -------  -------  -------  -------  -------  -------

TOTAL REVENUES (3)(4) $ 8,764  $    43  $ 8,807  $ 6,404  $    65  $ 6,469

TOTAL SOFTWARE
 REVENUES (3)         $ 5,954  $    16  $ 5,970  $ 5,015  $    26  $ 5,041
  New software
   licenses             2,214        -    2,214    1,718        -    1,718
  Software license
   updates and product
   support (3)          3,740       16    3,756    3,297       26    3,323

TOTAL HARDWARE SYSTEMS
 REVENUES (4)         $ 1,664  $    27  $ 1,691  $   458  $    39  $   497
  Hardware systems
   products             1,035        -    1,035      273        -      273
  Hardware systems
   support (4)            629       27      656      185       39      224

TOTAL OPERATING
 EXPENSES             $ 5,777  $  (862) $ 4,915  $ 4,561  $  (978) $ 3,583
  Hardware systems
   products               465        -      465      206      (24)     182
  Stock-based
   compensation (5)       128     (128)       -      112     (112)       -
  Amortization of
   intangible
   assets (6)             612     (612)       -      502     (502)       -
  Acquisition related
   and other               30      (30)       -       34      (34)       -
  Restructuring            92      (92)       -      306     (306)       -

OPERATING INCOME      $ 2,987  $   905  $ 3,892  $ 1,843  $ 1,043  $ 2,886

OPERATING MARGIN %         34%               44%      29%               45%

INCOME TAX
 EFFECTS (7)          $   683  $   258  $   941  $   393  $   287  $   680

NET INCOME            $ 2,116  $   647  $ 2,763  $ 1,189  $   756  $ 1,945

DILUTED EARNINGS PER
 SHARE                $  0.41           $  0.54  $  0.23           $  0.38

DILUTED WEIGHTED
 AVERAGE COMMON
 SHARES OUTSTANDING     5,149        -    5,149    5,076        -    5,076



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

TOTAL REVENUES (3)(4)    37%      36%      35%      34%

TOTAL SOFTWARE
 REVENUES (3)            19%      18%      17%      17%
  New software licenses  29%      29%      27%      27%
  Software license
   updates and
   product support (3)   13%      13%      12%      12%

TOTAL HARDWARE SYSTEMS
 REVENUES (4)           263%     240%     258%     234%
  Hardware systems
   products             279%     279%     274%     274%
  Hardware systems
   support (4)          239%     192%     234%     186%

TOTAL OPERATING
 EXPENSES                27%      37%      25%      35%
  Hardware systems
   products             126%     156%     115%     144%
  Stock-based
   compensation (5)      14%       *       14%       *
  Amortization of
   intangible
   assets (6)            22%       *       22%       *
  Acquisition
   related and
   other                (12%)      *      (16%)      *
  Restructuring         (70%)      *      (73%)      *

OPERATING INCOME         62%      35%      61%      33%

OPERATING MARGIN %     530 bp. (42) bp.  538 bp. (45) bp.

INCOME TAX EFFECTS (7)   74%      38%      74%      37%

NET INCOME               78%      42%      78%      40%

DILUTED EARNINGS PER
 SHARE                   75%      40%      76%      38%

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 rates 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 February 28, 2011, approximately $17 million, $28 million and
    $9 million in estimated revenues related to assumed software support
    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 February 28, 2011, approximately $15 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 was included in the following GAAP operating
    expense categories:


                           Three Months Ended         Three Months Ended
                           February 28, 2011          February 28, 2010
                      -------------------------  -------------------------
                        GAAP     Adj.   Non-GAAP   GAAP     Adj.   Non-GAAP
                      -------  -------  -------  -------  -------  -------
       Sales and
        marketing     $    22  $   (22) $     -  $    21  $   (21) $     -
       Software
        license
        updates and
        product
        support             4       (4)       -        4       (4)       -
       Hardware
        systems
        products            1       (1)       -        2       (2)       -
       Hardware
        systems
        support             1       (1)       -        1       (1)       -
       Services             5       (5)       -        4       (4)       -
       Research and
        development        58      (58)       -       46      (46)       -
       General and
        administrative     37      (37)       -       34      (34)       -
                      -------  -------  -------  -------  -------  -------
          Subtotal        128     (128)       -      112     (112)       -
                      -------  -------  -------  -------  -------  -------
       Acquisition
        related
        and other           1       (1)       -       10      (10)       -
                      -------  -------  -------  -------  -------  -------
          Total stock-
           based
           compen-
           sation     $   129  $  (129) $     -  $   122  $  (122) $     -
                      =======  =======  =======  =======  =======  =======


(6) Estimated future annual amortization expense related to intangible
    assets as of February 28, 2011 was as follows:

       Remainder of
        Fiscal 2011   $   598
       Fiscal 2012      2,245
       Fiscal 2013      1,874
       Fiscal 2014      1,526
       Fiscal 2015      1,127
       Fiscal 2016        635
       Thereafter         269
                      -------

     Total intangible
      assets subject
      to amortization   8,274
       In-process
        research and
        development        50
                      -------
          Total
           intangible
           assets,
           net        $ 8,324
                      =======

(7) Income tax effects were calculated reflecting an effective GAAP tax
    rate of 24.4% and 24.8% in the third quarter of fiscal 2011 and 2010,
    respectively, and an effective non-GAAP tax rate of 25.4% and 25.9% in
    the third quarter of fiscal 2011 and 2010, respectively. The difference
    between our GAAP and non-GAAP tax rates in the third quarter of fiscal
    2010 was primarily due to differences in jurisdictional tax rates and
    the related tax benefits attributable to our restructuring expenses.
    The difference between our GAAP and non-GAAP tax rates in the third
    quarter of fiscal 2011 was primarily due to income tax effects related
    to acquired tax exposures and the disproportionate tax rate impact of
    the retroactive extension of U.S. research and development tax credits.

* Not meaningful





                            ORACLE CORPORATION

               Q3 FISCAL 2011 YEAR TO DATE FINANCIAL RESULTS
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                  ($ in millions, except per share data)


                                                                % Increase
                 Nine Months Ended February 28,                 (Decrease)
              ------------------------------------  % Increase      in
                         % of               % of    (Decrease)   Constant
                2011   Revenues    2010   Revenues    in US $  Currency (1)
              -------  --------  -------  --------  ----------  ----------
REVENUES
  New software
   licenses   $ 5,498     22%    $ 4,399     25%         25%         25%
  Software
   license
   updates and
   product
   support     10,835     44%      9,661     56%         12%         12%
              -------  --------  -------  --------
    Software
     Revenues  16,333     66%     14,060     81%         16%         16%
              -------  --------  -------  --------
  Hardware
   systems
   products     3,225     13%        273      2%      1,082%      1,087%
  Hardware
   systems
   support      1,890      8%        185      1%        917%        914%
              -------  --------  -------  --------

    Hardware
     Systems
     Revenues   5,115     21%        458      3%      1,015%      1,017%
              -------  --------  -------  --------

  Services      3,399     13%      2,797     16%         22%         21%
              -------  --------  -------  --------

   Total
    Revenues   24,847    100%     17,315    100%         44%         44%
              -------  --------  -------  --------

OPERATING
 EXPENSES
  Sales and
   marketing    4,482     18%      3,335     19%         34%         34%
  Software
   license
   updates and
   product
   support        914      4%        771      5%         19%         18%
  Hardware
   systems
   products     1,547      6%        206      1%        651%        633%
  Hardware
   systems
   support        950      4%        116      1%        718%        707%
  Services      2,818     11%      2,429     14%         16%         16%
  Research and
   development  3,349     13%      2,191     12%         53%         53%
  General and
   adminis-
   trative (2)    714      3%        619      4%         15%         14%
  Amortization
   of intangi-
   ble assets   1,829      7%      1,369      8%         34%         34%
  Acquisition
   related and
   other          160      1%         50      0%        218%        191%
  Restructuring   410      2%        467      3%        (12%)       (12%)
              -------  --------  -------  --------
   Total
    Operating
    Expenses   17,173     69%     11,553     67%         49%         49%
              -------  --------  -------  --------

OPERATING
 INCOME         7,674     31%      5,762     33%         33%         33%
  Interest
   expense       (613)    (2%)      (553)    (3%)        11%         11%
  Non-operating
   income
   (expense),
   net            180      0%        (41)     0%        538%        510%
              -------  --------  -------  --------
INCOME BEFORE
 PROVISION
 FOR INCOME
 TAXES          7,241     29%      5,168     30%         40%         41%
              -------  --------  -------  --------
  Provision for
   income taxes 1,903      8%      1,396      8%         36%         37%
              -------  --------  -------  --------

NET INCOME    $ 5,338     21%    $ 3,772     22%         42%         42%
              =======  ========  =======  ========

EARNINGS PER
 SHARE:
  Basic       $  1.06            $  0.75
  Diluted     $  1.04            $  0.74

WEIGHTED
 AVERAGE
 COMMON
 SHARES
 OUTSTANDING:
  Basic         5,042              5,012
  Diluted       5,117              5,067


(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, 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 nine months ended
    February 28, 2011 compared with the corresponding prior year period had
    no impact on our revenues, operating expenses and operating income.

(2) General and administrative expenses for the nine months ended
    February 28, 2011 included a benefit of $120 million related to the
    recovery of legal costs.





                            ORACLE CORPORATION

              Q3 FISCAL 2011 YEAR TO DATE FINANCIAL RESULTS
    RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1)
                  ($ in millions, except per share data)


                                 Nine Months Ended February 28,
                      ----------------------------------------------------
                        2011              2011     2010              2010
                        GAAP     Adj.   Non-GAAP   GAAP     Adj.   Non-GAAP
                      -------  -------  -------  -------  -------  -------

TOTAL REVENUES (3)(4) $24,847  $   197  $25,044  $17,315  $    88  $17,403

TOTAL SOFTWARE
 REVENUES (3)         $16,333  $    64  $16,397  $14,060  $    49  $14,109
  New software
   licenses             5,498        -    5,498    4,399        -    4,399
  Software license
   updates and product
   support (3)         10,835       64   10,899    9,661       49    9,710

TOTAL HARDWARE
 SYSTEMS REVENUES (4) $ 5,115  $   133  $ 5,248  $   458  $    39  $   497
  Hardware systems
   products             3,225        -    3,225      273        -      273
  Hardware systems
   support (4)          1,890      133    2,023      185       39      224

TOTAL OPERATING
 EXPENSES              17,173   (2,774)  14,399   11,553   (2,210) $ 9,343
  Hardware systems
   products             1,547        -    1,547      206      (24)     182
  Stock-based
   compensation (5)       375     (375)       -      300     (300)       -
  Amortization of
   intangible
   assets (6)           1,829   (1,829)       -    1,369   (1,369)       -
  Acquisition related
   and other              160     (160)       -       50      (50)       -
  Restructuring           410     (410)       -      467     (467)       -

OPERATING INCOME      $ 7,674  $ 2,971  $10,645  $ 5,762  $ 2,298  $ 8,060

OPERATING MARGIN %         31%               43%      33%               46%

INCOME TAX
 EFFECTS (7)          $ 1,903  $   785  $ 2,688  $ 1,396  $   624  $ 2,020

NET INCOME            $ 5,338  $ 2,186  $ 7,524  $ 3,772  $ 1,674  $ 5,446

DILUTED EARNINGS PER
 SHARE                $  1.04           $  1.47  $  0.74           $  1.07

DILUTED WEIGHTED
 AVERAGE COMMON
 SHARES OUTSTANDING     5,117        -    5,117    5,067        -    5,067



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

TOTAL REVENUES (3)(4)      44%      44%      44%      44%

TOTAL SOFTWARE
 REVENUES (3)              16%      16%      16%      16%
  New software licenses    25%      25%      25%      25%
  Software license
   updates and
   product support (3)     12%      12%      12%      13%

TOTAL HARDWARE SYSTEMS
 REVENUES (4)           1,015%     955%   1,017%     955%
  Hardware systems
   products             1,082%   1,082%   1,087%   1,087%
  Hardware systems
   support (4)            917%     802%     914%     794%

TOTAL OPERATING EXPENSES   49%      54%      49%      54%
  Hardware systems
   products               651%     752%     633%     731%
  Stock-based
   compensation (5)        25%       *       25%       *
  Amortization of
   intangible
   assets (6)              34%       *       34%       *
  Acquisition
   related and other      218%       *      191%       *
  Restructuring           (12%)      *      (12%)      *

OPERATING INCOME           33%      32%      33%      32%

OPERATING MARGIN %     (239) bp. (381) bp. (233) bp. (378) bp.

INCOME TAX EFFECTS (7)     36%      33%      37%      33%

NET INCOME                 42%      38%      42%      39%

DILUTED EARNINGS PER
 SHARE                     40%      37%      41%      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 rates 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 February 28, 2011, approximately $17 million, $28 million and
    $9 million in estimated revenues related to assumed software support
    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 February 28, 2011, approximately $15 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 was included in the following GAAP operating
    expense categories:


                           Nine Months Ended          Nine Months Ended
                           February 28, 2011          February 28, 2010
                      -------------------------  -------------------------
                        GAAP     Adj.   Non-GAAP   GAAP     Adj.   Non-GAAP
                      -------  -------  -------  -------  -------  -------
       Sales and
        marketing     $    64  $   (64) $     -  $    57  $   (57) $     -
       Software
        license
        updates and
        product
        support            11      (11)       -       12      (12)       -
       Hardware
        systems
        products            2       (2)       -        2       (2)       -
       Hardware
        systems
        support             4       (4)       -        1       (1)       -
       Services            13      (13)       -       10      (10)       -
        Research and
        development       171     (171)       -      122     (122)       -
       General and
        administrative    110     (110)       -       96      (96)       -
                      -------  -------  -------  -------  -------  -------
          Subtotal        375     (375)       -      300     (300)       -
                      -------  -------  -------  -------  -------  -------
       Acquisition
        related and
        other               8       (8)       -       10      (10)       -
                      -------  -------  -------  -------  -------  -------
          Total stock-
           based
           compen-
           sation     $   383  $  (383) $     -  $   310  $  (310) $     -
                      =======  =======  =======  =======  =======  =======


(6) Estimated future annual amortization expense related to intangible
    assets as of February 28, 2011 was as follows:

       Remainder of
        Fiscal 2011   $   598
       Fiscal 2012      2,245
       Fiscal 2013      1,874
       Fiscal 2014      1,526
       Fiscal 2015      1,127
       Fiscal 2016        635
       Thereafter         269
                      -------

     Total intangible
      assets subject
      to amortization   8,274
       In-process
        research and
        development        50
                      -------
          Total
           intangible
           assets,
           net        $ 8,324
                      =======

(7) Income tax effects were calculated reflecting an effective GAAP tax
    rate of 26.3% and 27.0% in the first nine months of fiscal 2011 and
    2010, respectively, and an effective non-GAAP tax rate of 26.3% and
    27.1% in the first nine months of fiscal 2011 and 2010, respectively.
    The differences between our GAAP and non-GAAP tax rates in the first
    nine months of fiscal 2010 were primarily due to differences in
    jurisdictional tax rates and the related tax benefits attributable to
    our restructuring expenses.

* Not meaningful





                            ORACLE CORPORATION

                     Q3 FISCAL 2011 FINANCIAL RESULTS
                  CONDENSED CONSOLIDATED BALANCE SHEETS
                              ($ in millions)


                                                 February 28,    May 31,
                                                    2011          2010
                                                 -----------   -----------
ASSETS

  Current Assets:
    Cash and cash equivalents                    $    11,864   $     9,914
    Marketable securities                             12,491         8,555
    Trade receivables, net                             4,495         5,585
    Inventories                                          276           259
    Deferred tax assets                                1,193         1,159
    Prepaid expenses and other current assets          2,140         1,532
                                                 -----------   -----------
      Total Current Assets                            32,459        27,004

  Non-Current Assets:
    Property, plant and equipment, net                 2,894         2,763
    Intangible assets, net                             8,324         9,321
    Goodwill                                          21,425        20,425
    Deferred tax assets                                1,519         1,267
    Other assets                                       1,045           798
                                                 -----------   -----------
      Total Non-Current Assets                        35,207        34,574
                                                 -----------   -----------
TOTAL ASSETS                                     $    67,666   $    61,578
                                                 ===========   ===========

LIABILITIES AND EQUITY

  Current Liabilities:
    Notes payable, current and other current
     borrowings                                  $         -   $     3,145
    Accounts payable                                     673           775
    Accrued compensation and related benefits          1,872         1,895
    Deferred revenues                                  5,849         5,900
    Other current liabilities                          2,888         2,976
                                                 -----------   -----------
      Total Current Liabilities                       11,282        14,691

  Non-Current Liabilities:
    Notes payable and other non-current
     borrowings                                       14,752        11,510
    Income taxes payable                               3,078         2,695
    Deferred tax liabilities                             350           424
    Other non-current liabilities                      1,145         1,059
                                                 -----------   -----------
      Total Non-Current Liabilities                   19,325        15,688

  Equity                                              37,059        31,199
                                                 -----------   -----------
TOTAL LIABILITIES AND EQUITY                     $    67,666   $    61,578
                                                 ===========   ===========





                            ORACLE CORPORATION

                     Q3 FISCAL 2011 FINANCIAL RESULTS
              CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                              ($ in millions)


                                                     Nine Months Ended
                                                        February 28,
                                                 -------------------------
                                                    2011          2010
                                                 -----------   -----------
Cash Flows From Operating Activities:

  Net income                                     $     5,338   $     3,772
  Adjustments to reconcile net income to net
   cash provided by operating activities:
     Depreciation                                        283           196
     Amortization of intangible assets                 1,829         1,369
     Deferred income taxes                              (174)         (362)
     Stock-based compensation                            383           310
     Tax benefits on the exercise of stock
      options and vesting of restricted
      stock-based awards                                 222           117
     Excess tax benefits on the exercise of
      stock options and vesting of restricted
      stock-based awards                                (139)          (71)
     Other, net                                           42            79
     Changes in operating assets and liabilities,
      net of effects from acquisitions:
        Decrease in trade receivables, net             1,377         1,614
        (Increase) decrease in inventories                (9)           18
        Decrease in prepaid expenses and other
         assets                                          261           375
        Decrease in accounts payable and other
         liabilities                                    (821)         (842)
        Decrease in income taxes payable                (591)         (269)
        Decrease in deferred revenues                   (564)         (136)
                                                 -----------   -----------

          Net cash provided by operating
           activities                                  7,437         6,170
                                                 -----------   -----------

Cash Flows From Investing Activities:
  Purchases of marketable securities and
   other investments                                 (22,861)      (11,162)
  Proceeds from maturities and sales of
   marketable securities and other investments        19,159         7,121
  Acquisitions, net of cash acquired                  (1,673)       (5,567)
  Capital expenditures                                  (372)         (161)
  Proceeds from sale of property                          85             -
                                                 -----------   -----------

          Net cash used for investing
           activities                                 (5,662)       (9,769)
                                                 -----------   -----------


Cash Flows From Financing Activities:
  Payments for repurchases of common stock              (749)         (738)
  Proceeds from issuances of common stock              1,028           602
  Payment of dividends to stockholders                  (757)         (753)
  Proceeds from borrowings, net of issuance
   costs                                               3,204         6,420
  Repayments of borrowings                            (3,143)       (1,708)
  Excess tax benefits on the exercise of
   stock options and vesting of restricted
   stock-based awards                                    139            71
  Distributions to noncontrolling interests              (65)          (59)
                                                 -----------   -----------
          Net cash (used for) provided by
           financing activities                         (343)        3,835
                                                 -----------   -----------

Effect of exchange rate changes on cash and
 cash equivalents                                        518           100
                                                 -----------   -----------

Net increase in cash and cash equivalents              1,950           336
                                                 -----------   -----------

Cash and cash equivalents at beginning of period       9,914         8,995
                                                 -----------   -----------

Cash and cash equivalents at end of period       $    11,864   $     9,331
                                                 ===========   ===========





                            ORACLE CORPORATION
                     Q3 FISCAL 2011 FINANCIAL RESULTS
                 FREE CASH FLOW - TRAILING 4-QUARTERS (1)
                              ($ in millions)


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

GAAP Operating Cash Flow            $  8,753  $  8,654  $  8,178  $  8,681

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

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

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

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

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

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

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



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

GAAP Operating Cash Flow            $  8,760  $  9,053  $  9,948

Capital Expenditures (2)                (293)     (369)     (441)
                                    --------  --------  --------  --------

Free Cash Flow                      $  8,467  $  8,684  $  9,507
                                    ========  ========  ========  ========

% Growth over prior year                  0%        3%       19%

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

GAAP Net Income                     $  6,363  $  6,776  $  7,701

Free Cash Flow as a % of Net Income      133%      128%      123%

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


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

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





                            ORACLE CORPORATION
                     Q3 FISCAL 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  $  2,214            $  5,498
  Software license
   updates and product
   support                  3,450     3,645     3,740              10,835
                         --------  --------  --------  --------  --------
     Software Revenues      4,736     5,644     5,954              16,333

  Hardware systems
   products                 1,079     1,112     1,035               3,225
  Hardware systems
   support                    619       641       629               1,890
                         --------  --------  --------  --------  --------
     Hardware Systems
      Revenues              1,698     1,753     1,664               5,115

  Consulting                  666       738       722               2,127
  On Demand                   321       350       341               1,012
  Education                    81        97        83                 260
                         --------  --------  --------  --------  --------
     Services Revenues      1,068     1,185     1,146               3,399

                         --------  --------  --------  --------  --------
        Total Revenues   $  7,502  $  8,582  $  8,764            $ 24,847
                         ========  ========  ========  ========  ========

AS REPORTED REVENUE
 GROWTH RATES
  New software licenses        25%       21%       29%                 25%
  Software license
   updates and product
   support                     11%       12%       13%                 12%
     Software Revenues         14%       15%       19%                 16%

  Hardware systems
   products                     *         *       279%              1,082%
  Hardware systems
   support                      *         *       239%                917%
     Hardware Systems
      Revenues                  *         *       263%              1,015%

  Consulting                    0%        7%       11%                  6%
  On Demand                    78%       86%       61%                 75%
  Education                    24%       25%       20%                 23%
     Services Revenues         18%       24%       23%                 22%

        Total Revenues         48%       47%       37%                 44%

CONSTANT CURRENCY GROWTH
 RATES (2)
  New software licenses        25%       23%       27%                 25%
  Software license
   updates and product
   support                     12%       13%       12%                 12%
     Software Revenues         15%       17%       17%                 16%

  Hardware systems
   products                     *         *       274%              1,087%
  Hardware systems
   support                      *         *       234%                914%
     Hardware Systems
      Revenues                  *         *       258%              1,017%

  Consulting                    1%        8%       10%                  6%
  On Demand                    80%       86%       58%                 74%
  Education                    24%       26%       19%                 23%
     Services Revenues         18%       25%       21%                 21%

        Total Revenues         49%       48%       35%                 44%

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

GEOGRAPHIC REVENUES

REVENUES
  Americas               $  3,904  $  4,452  $  4,509            $ 12,865
  Europe, Middle East
   & Africa                 2,381     2,738     2,815               7,934
  Asia Pacific              1,217     1,392     1,440               4,048
                         --------  --------  --------  --------  --------
        Total Revenues   $  7,502  $  8,582  $  8,764            $ 24,847
                         ========  ========  ========  ========  ========

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

HEADCOUNT

GEOGRAPHIC AREA
  Americas                 44,494    44,815    45,825
  Europe, Middle East
   & Africa                22,886    22,690    22,705
  Asia Pacific             37,856    38,225    39,340
                         --------  --------  --------  --------  --------
        Total Company     105,236   105,730   107,870
                         ========  ========  ========  ========  ========


(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
                     Q3 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  $  1,575            $  3,931
     Software license
      updates and
      product support       2,316     2,443     2,523               7,282
                         --------  --------  --------  --------  --------
        Database and
         Middleware
         Revenues        $  3,253  $  3,863  $  4,098            $ 11,213
                         ========  ========  ========  ========  ========

  AS REPORTED GROWTH
   RATES
     New software
      licenses                 32%       21%       27%                 26%
     Software license
      updates and
      product support          12%       15%       15%                 14%
        Database and
         Middleware
         Revenues              17%       17%       19%                 18%

  CONSTANT CURRENCY
   GROWTH RATES (2)
     New software
      licenses                 32%       23%       26%                 26%
     Software license
      updates and
      product support          13%       16%       14%                 14%
        Database and
         Middleware
         Revenues              18%       18%       18%                 18%

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

  APPLICATIONS REVENUES
     New software
      licenses           $    349  $    579  $    639            $  1,567
     Software license
      updates and
      product support       1,134     1,202     1,217               3,553
                         --------  --------  --------  --------  --------
        Applications
         Revenues        $  1,483  $  1,781  $  1,856            $  5,120
                         ========  ========  ========  ========  ========

  AS REPORTED GROWTH
   RATES
     New software
      licenses                 10%       21%       34%                 23%
     Software license
      updates and
      product support           8%        8%       10%                  9%
        Applications
         Revenues               8%       12%       17%                 13%

  CONSTANT CURRENCY
   GROWTH RATES (2)
     New software
      licenses                 10%       22%       31%                 22%
     Software license
      updates and
      product support           9%        9%        9%                  9%
        Applications
         Revenues               9%       13%       16%                 13%

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


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

(2) We compare the percent change in the results from one period to another
    period using constant currency disclosure. We present constant currency
    information to provide a framework for assessing how our underlying
    businesses performed excluding the effect of foreign currency rate
    fluctuations. To present this information, current and comparative
    prior period results for entities reporting in currencies other than
    United States dollars are converted into United States dollars at the
    exchange rates in effect on May 31, 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
                     Q3 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  $    755            $  1,871
  Applications                212       359       355                 926
                         --------  --------  --------  --------  --------
     New Software
      License Revenues   $    658  $  1,030  $  1,110            $  2,797
                         --------  --------  --------  --------  --------
  Hardware Systems
   Products Revenues     $    543  $    602  $    506            $  1,650
                         ========  ========  ========  ========  ========

AS REPORTED GROWTH RATES
  Database & Middleware        44%       36%       40%                 39%
  Applications                 14%       26%       26%                 23%
     New Software
      License Revenues         33%       32%       35%                 33%
  Hardware Systems
   Products Revenues            *         *       287%              1,163%

CONSTANT CURRENCY GROWTH
 RATES (2)
  Database & Middleware        43%       36%       39%                 39%
  Applications                 14%       26%       24%                 22%
     New Software
      License Revenues         32%       32%       34%                 33%
  Hardware Systems
   Products Revenues            *         *       285%              1,158%

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

EUROPE / MIDDLE EAST /
 AFRICA

  Database & Middleware  $    279  $    426  $    505            $  1,211
  Applications                 73       148       197                 417
                         --------  --------  --------  --------  --------
     New Software
      License Revenues   $    352  $    574  $    702            $  1,628
                         --------  --------  --------  --------  --------
  Hardware Systems
   Products Revenues     $    338  $    329  $    330            $    997
                         ========  ========  ========  ========  ========

AS REPORTED GROWTH RATES
  Database & Middleware        25%       (1%)      11%                  9%
  Applications                (19%)      23%       47%                 22%
     New Software
      License Revenues         12%        5%       19%                 12%
  Hardware Systems
   Products Revenues            *         *       246%                945%

CONSTANT CURRENCY GROWTH
 RATES (2)
  Database & Middleware        32%        7%       12%                 14%
  Applications                (16%)      31%       46%                 24%
     New Software
      License Revenues         18%       12%       20%                 17%
  Hardware Systems
   Products Revenues            *         *       246%                987%

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

ASIA PACIFIC

  Database & Middleware  $    212  $    323  $    315            $    849
  Applications                 64        72        87                 224
                         --------  --------  --------  --------  --------
     New Software
      License Revenues   $    276  $    395  $    402            $  1,073
                         --------  --------  --------  --------  --------
  Hardware Systems
   Products Revenues     $    198  $    181  $    199            $    578
                         ========  ========  ========  ========  ========

AS REPORTED GROWTH RATES
  Database & Middleware        19%       27%       28%                 26%
  Applications                 54%       (1%)      45%                 28%
     New Software
      License Revenues         26%       21%       32%                 26%
  Hardware Systems
   Products Revenues            *         *       325%              1,133%

CONSTANT CURRENCY GROWTH
 RATES (2)
  Database & Middleware        13%       22%       20%                 19%
  Applications                 47%       (5%)      34%                 21%
     New Software
      License Revenues         19%       16%       23%                 19%
  Hardware Systems
   Products Revenues            *         *       295%              1,072%

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

TOTAL COMPANY

  Database & Middleware  $    937  $  1,420  $  1,575            $  3,931
  Applications                349       579       639               1,567
                         --------  --------  --------  --------  --------
     New Software
      License Revenues   $  1,286  $  1,999  $  2,214            $  5,498
                         --------  --------  --------  --------  --------
  Hardware Systems
   Products Revenues     $  1,079  $  1,112  $  1,035            $  3,225
                         ========  ========  ========  ========  ========

AS REPORTED GROWTH RATES
  Database & Middleware        32%       21%       27%                 26%
  Applications                 10%       21%       34%                 23%
     New Software
      License Revenues         25%       21%       29%                 25%
  Hardware Systems
   Products Revenues            *         *       279%              1,082%

CONSTANT CURRENCY GROWTH
 RATES (2)
  Database & Middleware        32%       23%       26%                 26%
  Applications                 10%       22%       31%                 22%
     New Software
      License Revenues         25%       23%       27%                 25%
  Hardware Systems
   Products Revenues            *         *       274%              1,087%

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


(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
                         Q3 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.

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

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

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

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

Contact Information

  • Contact:
    Ken Bond
    Oracle Investor Relations
    1.650.607.0349
    Email Contact

    Deborah Hellinger
    Oracle Corporate Communications
    1.212.508.7935
    Email Contact