SOURCE: Oracle Corporation

Oracle Corporation

June 23, 2011 16:00 ET

Oracle Reports Q4 GAAP EPS Up 34% to 62 Cents; Q4 Non-GAAP EPS Up 25% to 75 Cents

Q4 Software New License Sales Up 19%, Q4 Total Revenue Up 13%

REDWOOD SHORES, CA--(Marketwire - Jun 23, 2011) - Oracle Corporation (NASDAQ: ORCL) today announced fiscal 2011 Q4 GAAP total revenues were up 13% to $10.8 billion, while non-GAAP total revenues were up 12% to $10.8 billion. Both GAAP and non-GAAP new software license revenues were up 19% to $3.7 billion. Both GAAP and non-GAAP software license updates and product support revenues were up 15% to $4.0 billion. Both GAAP and non-GAAP hardware systems products revenues were down 6% to $1.2 billion. GAAP operating income was up 32% to $4.4 billion, and GAAP operating margin was 40%. Non-GAAP operating income was up 19% to $5.2 billion, and non-GAAP operating margin was 48%. GAAP net income was up 36% to $3.2 billion, while non-GAAP net income was up 27% to $3.9 billion. GAAP earnings per share were $0.62, up 34% compared to last year while non-GAAP earnings per share were up 25% to $0.75. GAAP operating cash flow on a trailing twelve-month basis was $11.2 billion.

For fiscal year 2011, GAAP total revenues were up 33% to $35.6 billion, while non-GAAP total revenues were up 33% to $35.9 billion. Both GAAP and non-GAAP new software license revenues were up 23% to $9.2 billion. GAAP software license updates and product support revenues were up 13% to $14.8 billion, while non-GAAP software license updates and product support revenues were up 13% to $14.9 billion. Both GAAP and non-GAAP hardware systems products revenues were $4.4 billion. GAAP operating income was up 33% to $12.0 billion, and GAAP operating margin was 34%. Non-GAAP operating income was up 27% to $15.9 billion, and non-GAAP operating margin was 44%. GAAP net income was up 39% to $8.5 billion, while non-GAAP net income was up 34% to $11.4 billion. GAAP earnings per share were $1.67, up 38% compared to last year while non-GAAP earnings per share were up 33% to $2.22.

"In Q4, we achieved a 19% new software license growth rate with almost no help from acquisitions," said Oracle President and CFO, Safra Catz. "This strong organic growth combined with continuously improving operational efficiencies enabled us to deliver a 48% operating margin in the quarter. As our results reflect, we clearly exceeded even our own high expectations for Sun's business."

"In addition to record setting software sales, our Exadata and Exalogic systems also made a strong contribution to our growth in Q4," said Oracle President, Mark Hurd. "Today there are more than 1,000 Exadata machines installed worldwide. Our goal is to triple that number in FY12."

"In FY11 Oracle's database business experienced its fastest growth in a decade," said Oracle CEO, Larry Ellison. "Over the past few years we added features to the Oracle database for both cloud computing and in-memory databases that led to increased database sales this past year. Lately we've been focused on the big business opportunity presented by Big Data."

In addition, Oracle also announced that its Board of Directors declared a quarterly cash dividend of $0.06 per share of outstanding common stock. This dividend will be paid to stockholders of record as of the close of business on July 13, 2011, with a payment date of August 3, 2011.

Q4 Earnings Conference Call and Webcast
Oracle will hold a conference call and webcast today to discuss these results at 2:00 p.m. Pacific. You may listen to the call by dialing (913) 312-0945 or (877) 612-6725, Passcode: 7002523. 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 future plans, expectations, beliefs, intentions and prospects, are "forward-looking statements" and are subject to material risks and uncertainties. Many factors could affect our current expectations and our actual results, and could cause actual results to differ materially. We presently consider the following to be among the important factors that could cause actual results to differ materially from expectations: (1) Economic, political and market conditions, including the recent 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 hardware systems business may not be successful, and we may fail to achieve our financial forecasts with respect to this business. (4) We have an active acquisition program and our acquisitions may not be successful, may involve unanticipated costs or other integration issues or may disrupt our existing operations. (5) Our international sales and operations subject us to additional risks that can adversely affect our operating results, including risks relating to foreign currency gains and losses, 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 June 23, 2011. Oracle undertakes no duty to update any statement in light of new information or future events.


                             ORACLE CORPORATION

                     Q4 FISCAL 2011 FINANCIAL RESULTS
               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                   ($ in millions, except per share data)



                                                               % Increase
                                                               (Decrease)
                     Three Months Ended May 31,                    in
                 ---------------------------------  % Increase  Constant
                          % of              % of    (Decrease)  Currency
                 2011   Revenues   2010   Revenues    in US $      (1)
                ------  --------  ------  --------  ----------  ---------
REVENUES
  New software
   licenses     $3,736        35% $3,135        33%         19%        12%
  Software
   license
   updates and
   product
   support       3,961        36%  3,431        36%         15%        10%
                ------  --------  ------  --------
    Software
     Revenues    7,697        71%  6,566        69%         17%        11%
                ------  --------  ------  --------
  Hardware
   systems
   products      1,157        11%  1,233        13%         (6%)      (11%)
  Hardware
   systems
   support         673         6%    598         6%         12%         6%
                ------  --------  ------  --------
    Hardware
     Systems
     Revenues    1,830        17%  1,831        19%          0%        (5%)
                ------  --------  ------  --------
  Services       1,248        12%  1,108        12%         13%         7%
                ------  --------  ------  --------
      Total
       Revenues 10,775       100%  9,505       100%         13%         7%
                ------  --------  ------  -------- 

OPERATING EXPENSES
  Sales and
   marketing     2,098        20%  1,745        18%         20%        15%
  Software
   license
   updates and
   product
   support         350         3%    292         3%         20%        15%
  Hardware
   systems
   products        511         5%    675         7%        (24%)      (29%)
  Hardware
   systems
   support         309         3%    306         4%          1%        (5%)
  Services       1,000         9%    969        10%          3%        (2%)
  Research and
   development   1,170        11%  1,063        11%         10%         8%
  General and
   administrative  255         2%    293         3%        (13%)      (15%)
  Amortization
   of intangible
   assets          598         6%    605         6%         (1%)       (1%)
  Acquisition
   related and
   other            48         0%    103         1%        (54%)      (59%)
  Restructuring     77         1%    154         2%        (50%)      (56%)
                ------  --------  ------  --------
      Total
       Operating
       Expenses  6,416        60%  6,205        65%          3%        (1%)
                ------  --------  ------  --------

OPERATING INCOME 4,359        40%  3,300        35%         32%        22%
  Interest
   expense        (195)       (1%)  (201)       (2%)        (3%)       (3%)
  Non-operating
   income
  (expense), net     6         0%    (24)        0%        126%       120%
                ------  --------  ------  --------

INCOME BEFORE
 PROVISION FOR
 INCOME TAXES    4,170        39%  3,075        33%         36%        25%
                ------  --------  ------  --------
  Provision for
   income taxes    961         9%    711         8%         35%        24%
                ------  --------  ------  --------

NET INCOME      $3,209        30% $2,364        25%         36%        25%
                ======  ========  ======  ========

EARNINGS PER
 SHARE:
  Basic         $ 0.63            $ 0.47
  Diluted       $ 0.62            $ 0.46
WEIGHTED
 AVERAGE
 COMMON SHARES
 OUTSTANDING:
  Basic          5,065             5,022
  Diluted        5,164             5,090


(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
    May 31, 2011 compared with the corresponding prior year period
    increased our revenues by 6 percentage points, operating expenses by 4
    percentage points and operating income by 10 percentage points.





                            ORACLE CORPORATION

                     Q4 FISCAL 2011 FINANCIAL RESULTS
     RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1)
                  ($ in millions, except per share data)


                                     Three Months Ended May 31,
                         -------------------------------------------------
                          2011             2011    2010              2010
                          GAAP     Adj.  Non-GAAP  GAAP     Adj.   Non-GAAP
                         -------  -----  -------  ------  -------  -------

TOTAL REVENUES (3) (4)   $10,775  $  31  $10,806  $9,505  $   126  $ 9,631

TOTAL SOFTWARE
 REVENUES (3)            $ 7,697  $  17  $ 7,714  $6,566  $    36  $ 6,602
   New software
    licenses               3,736      -    3,736   3,135        -    3,135
   Software license
    updates and product
    support (3)            3,961     17    3,978   3,431       36    3,467

TOTAL HARDWARE SYSTEMS
 REVENUES (4)            $ 1,830  $  14  $ 1,844  $1,831  $    90  $ 1,921
   Hardware systems
    products               1,157      -    1,157   1,233        -    1,233
   Hardware systems
    support (4)              673     14      687     598       90      688

TOTAL OPERATING EXPENSES $ 6,416  $(848) $ 5,568  $6,205  $  (989) $ 5,216
   Hardware systems
    products                 511      -      511     675       (6)     669
   Stock-based
    compensation (5)         125   (125)       -     121     (121)       -
   Amortization of
    intangible assets (6)    598   (598)       -     605     (605)       -
   Acquisition related
    and other                 48    (48)       -     103     (103)       -
   Restructuring              77    (77)       -     154     (154)       -

OPERATING INCOME         $ 4,359  $ 879  $ 5,238  $3,300  $ 1,115  $ 4,415

OPERATING MARGIN %            40%             48%     35%               46%

INCOME TAX EFFECTS (7)   $   961  $ 216  $ 1,177  $  711  $   431  $ 1,142

NET INCOME               $ 3,209  $ 663  $ 3,872  $2,364  $   684  $ 3,048

DILUTED EARNINGS PER
 SHARE                   $  0.62         $  0.75  $ 0.46           $  0.60

DILUTED WEIGHTED
 AVERAGE COMMON
 SHARES OUTSTANDING        5,164      -    5,164   5,090        -    5,090


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

TOTAL REVENUES (3) (4)          13%        12%         7%         6%

TOTAL SOFTWARE
 REVENUES (3)                   17%        17%        11%        10%
   New software licenses        19%        19%        12%        12%
   Software license
    updates and product
    support (3)                 15%        15%        10%         9%

TOTAL HARDWARE SYSTEMS
 REVENUES (4)                    0%        (4%)       (5%)       (9%)
   Hardware systems
    products                    (6%)       (6%)      (11%)      (11%)
   Hardware systems
    support (4)                 12%         0%         6%        (6%)

TOTAL OPERATING EXPENSES         3%         7%        (1%)        2%
   Hardware systems
    products                   (24%)      (24%)      (29%)      (28%)
   Stock-based
    compensation (5)             4%         *          4%         *
   Amortization of
    intangible assets (6)       (1%)        *         (1%)        *
   Acquisition related
    and other                  (54%)        *        (59%)        *
   Restructuring               (50%)        *        (56%)        *

OPERATING INCOME                32%        19%        22%        11%

OPERATING MARGIN %          574 bp.    264 bp.    477 bp.    197 bp.

INCOME TAX EFFECTS (7)          35%         3%        24%        (4%)

NET INCOME                      36%        27%        25%        18%

DILUTED EARNINGS PER
 SHARE                          34%        25%        23%        16%

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 May 31, 2011, approximately $29 million, $9 million and $2
    million in estimated revenues related to assumed software support
    contracts will not be recognized for fiscal 2012, fiscal 2013 and
    fiscal 2014, respectively, due to business combination accounting
    rules.

(4) As of May 31, 2011, approximately $30 million and $11 million in
    estimated revenues related to hardware systems support contracts will
    not be recognized for 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
                                      May 31, 2011         May 31, 2010
                                  -------------------- --------------------
                                  GAAP  Adj.  Non-GAAP GAAP Adj.   Non-GAAP
                                  ---- -----  -------- ---- -----  --------
     Sales and marketing          $ 23 $ (23) $      - $ 24 $ (24) $      -
     Software license updates and
      product support                3    (3)        -    5    (5)        -
     Hardware systems products       -     -         -    1    (1)        -
     Hardware systems support        1    (1)        -    1    (1)        -
     Services                        3    (3)        -    4    (4)        -
     Research and development       60   (60)        -   50   (50)        -
     General and administrative     35   (35)        -   36   (36)        -
                                  ---- -----  -------- ---- -----  --------
           Subtotal                125  (125)        -  121  (121)        -
                                  ---- -----  -------- ---- -----  --------
     Acquisition related and
      other                          2    (2)        -    5    (5)        -
                                  ---- -----  -------- ---- -----  --------
           Total stock-based
            compensation          $127 $(127) $      - $126 $(126) $      -
                                  ==== =====  ======== ==== =====  ========


(6) Estimated future annual amortization expense related to intangible
    assets as of May 31, 2011 was as follows:

         Fiscal 2012           $ 2,275
         Fiscal 2013             1,902
         Fiscal 2014             1,554
         Fiscal 2015             1,155
         Fiscal 2016               657
         Thereafter                267
                               -------
         Total intangible
          assets subject to
          amortization           7,810
         In-process research
          and development           50
                               -------
            Total intangible
             assets, net       $ 7,860
                               =======

(7) Income tax effects were calculated reflecting an effective GAAP tax
    rate of 23.1% and 23.1% in the fourth quarter of fiscal 2011 and 2010,
    respectively, and an effective non-GAAP tax rate of 23.3% and 27.3% in
    the fourth quarter of fiscal 2011 and 2010, respectively. The
    differences between our GAAP and non-GAAP tax rates in the fourth
    quarter of fiscal 2011 were primarily due to income tax effects related
    to acquired tax exposures and tax benefits attributable to our
    restructuring expenses in this period. The differences between our GAAP
    and non-GAAP tax rates in the fourth quarter of fiscal 2010 were
    primarily due to income tax effects of non-GAAP pretax income
    adjustments including differences in jurisdictional tax rates and the
    related tax benefits attributable to our restructuring expenses in this
    period, and were also due to income tax effects related to acquired tax
    exposures.

* Not meaningful



                             ORACLE CORPORATION

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



                                                                % Increase
                                                                (Decrease)
                           Year Ended May 31,                       in
                  ----------------------------------  % Increase Constant
                            % of              % of    (Decrease) Currency
                   2011   Revenues   2010   Revenues   in US $     (1)
                  ------  --------  ------  --------  ---------  --------
REVENUES
  New software
   licenses       $9,235        26% $7,533        28%        23%       19%
  Software license
   updates and
   product
   support        14,796        42% 13,092        49%        13%       12%
                  ------  --------  ------  --------
    Software
     Revenues     24,031        68% 20,625        77%        17%       15%
                  ------  --------  ------  --------
  Hardware
   systems
   products        4,382        12%  1,506         6%       191%      184%
  Hardware
   systems
   support         2,562         7%    784         3%       227%      218%
                  ------  --------  ------  --------
    Hardware
     Systems
     Revenues      6,944        19%  2,290         9%       203%      195%
                  ------  --------  ------  --------
  Services         4,647        13%  3,905        14%        19%       17%
                  ------  --------  ------  --------
      Total
       Revenues   35,622       100% 26,820       100%        33%       30%
                  ------  --------  ------  --------

OPERATING EXPENSES
  Sales and
   marketing       6,579        18%  5,080        19%        30%       28%
  Software license
   updates and
   product
   support         1,264         3%  1,063         4%        19%       17%
  Hardware
   systems
   products        2,057         6%    880         3%       134%      126%
  Hardware
   systems
   support         1,259         3%    423         2%       198%      189%
  Services         3,818        11%  3,398        13%        12%       11%
  Research and
   development     4,519        13%  3,254        12%        39%       38%
  General and
   administrative
   (2)               970         3%    911         3%         6%        5%
  Amortization
   of intangible
   assets          2,428         7%  1,973         7%        23%       23%
  Acquisition
   related and
   other             208         1%    154         1%        35%       27%
  Restructuring      487         1%    622         2%       (22%)     (23%)
                  ------  --------  ------  --------
      Total
       Operating
       Expenses   23,589        66% 17,758        66%        33%       31%
                  ------  --------  ------  --------

OPERATING INCOME  12,033        34%  9,062        34%        33%       29%
  Interest
   expense          (808)       (3%)  (754)       (3%)        7%        7%
  Non-operating
   income
   (expense), net    186         1%    (65)        0%       388%      372%
                  ------  --------  ------  --------

INCOME BEFORE
 PROVISION FOR
 INCOME TAXES     11,411        32%  8,243        31%        38%       35%
                  ------  --------  ------  --------
  Provision for
   income taxes    2,864         8%  2,108         8%        36%       32%
                  ------  --------  ------  --------

NET INCOME        $8,547        24% $6,135        23%        39%       36%
                  ======  ========  ======  ========

EARNINGS PER
 SHARE:
  Basic           $ 1.69            $ 1.22
  Diluted         $ 1.67            $ 1.21
WEIGHTED AVERAGE
 COMMON SHARES
 OUTSTANDING:
  Basic            5,048             5,014
  Diluted          5,128             5,073



(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 year ended May 31, 2011
    compared with the corresponding prior year increased our revenues by 3
    percentage points, operating expenses by 2 percentage points and
    operating income by 4 percentage points.

(2) General and administrative expenses for the year ended May 31, 2011
    included a benefit of $120 million related to the recovery of legal
    costs.




                            ORACLE CORPORATION

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


                                       Year Ended May 31,
                      ----------------------------------------------------
                        2011              2011     2010              2010
                        GAAP     Adj.   Non-GAAP   GAAP     Adj.   Non-GAAP
                      -------  -------  -------  -------  -------  -------
TOTAL REVENUES (3)(4) $35,622  $   228  $35,850  $26,820  $   214  $27,034

TOTAL SOFTWARE
 REVENUES (3)         $24,031  $    80  $24,111  $20,625  $    86  $20,711
   New software
    licenses            9,235        -    9,235    7,533        -    7,533
   Software license
    updates and product
    support (3)        14,796       80   14,876   13,092       86   13,178

TOTAL HARDWARE
 SYSTEMS REVENUES (4) $ 6,944  $   148  $ 7,092  $ 2,290  $   128  $ 2,418
   Hardware systems
    products            4,382        -    4,382    1,506        -    1,506
   Hardware systems
    support (4)         2,562      148    2,710      784      128      912

TOTAL OPERATING
 EXPENSES             $23,589  $(3,623) $19,966  $17,758  $(3,199) $14,559
   Hardware systems
    products            2,057       (2)   2,055      880      (29)     851
   Stock-based
    compensation (5)      498     (498)       -      421     (421)       -
   Amortization of
    intangible
    assets (6)          2,428   (2,428)       -    1,973   (1,973)       -
   Acquisition
    related and
    other                 208     (208)       -      154     (154)       -
   Restructuring          487     (487)       -      622     (622)       -

OPERATING INCOME      $12,033  $ 3,851  $15,884  $ 9,062  $ 3,413  $12,475

OPERATING MARGIN %         34%               44%      34%               46%

INCOME TAX
 EFFECTS (7)          $ 2,864  $ 1,003  $ 3,867  $ 2,108  $ 1,054  $ 3,162

NET INCOME            $ 8,547  $ 2,848  $11,395  $ 6,135  $ 2,359  $ 8,494

DILUTED EARNINGS PER
 SHARE                $  1.67           $  2.22  $  1.21           $  1.67

DILUTED WEIGHTED
 AVERAGE COMMON
 SHARES OUTSTANDING     5,128        -    5,128    5,073        -    5,073


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

TOTAL REVENUES (3) (4)       33%        33%        30%        30%

TOTAL SOFTWARE
 REVENUES (3)                17%        16%        15%        14%
   New software
    licenses                 23%        23%        19%        19%
   Software license
    updates and
    product
    support (3)              13%        13%        12%        12%

TOTAL HARDWARE
 SYSTEMS REVENUES (4)       203%       193%       195%       186%
   Hardware systems
    products                191%       191%       184%       184%
   Hardware systems
    support (4)             227%       197%       218%       189%

TOTAL OPERATING
 EXPENSES                    33%        37%        31%        35%
   Hardware systems
    products                134%       142%       126%       134%
   Stock-based
    compensation (5)         19%        *          19%        *
   Amortization of
    intangible
    assets (6)               23%        *          23%        *
   Acquisition
    related and
    other                    35%        *          27%        *
   Restructuring            (22%)       *         (23%)       *

OPERATING INCOME             33%        27%        29%        24%

OPERATING MARGIN %        (1) bp.   (184) bp.   (37) bp.  (208) bp.

INCOME TAX
 EFFECTS (7)                 36%        22%        32%        20%

NET INCOME                   39%        34%        36%        31%

DILUTED EARNINGS PER
 SHARE                       38%        33%        34%        30%

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 May 31, 2011, approximately $29 million, $9 million and $2
    million in estimated revenues related to assumed software support
    contracts will not be recognized for fiscal 2012, fiscal 2013 and
    fiscal 2014, respectively, due to business combination accounting
    rules.

(4) As of May 31, 2011, approximately $30 million and $11 million in
    estimated revenues related to hardware systems support contracts will
    not be recognized for 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:


                                    Year Ended             Year Ended
                                   May 31, 2011           May 31, 2010
                              ---------------------- ----------------------
                               GAAP  Adj.   Non-GAAP  GAAP  Adj.   Non-GAAP
                              ------ -----  -------- ------ -----  --------
     Sales and marketing      $   87 $ (87) $      - $   81 $ (81) $      -
     Software license updates
      and product support         14   (14)        -     17   (17)        -
     Hardware systems
      products                     2    (2)        -      3    (3)        -
     Hardware systems support      5    (5)        -      2    (2)        -
     Services                     16   (16)        -     14   (14)        -
     Research and development    231  (231)        -    172  (172)        -
     General and
      administrative             145  (145)        -    132  (132)        -
                              ------ -----  -------- ------ -----  --------
           Subtotal              500  (500)        -    421  (421)        -
                              ------ -----  -------- ------ -----  --------
     Acquisition related and
      other                       10   (10)        -     15   (15)        -
                              ------ -----  -------- ------ -----  --------
           Total stock-based
            compensation      $  510 $(510) $      - $  436 $(436) $      -
                              ====== =====  ======== ====== =====  ========


(6) Estimated future annual amortization expense related to intangible
    assets as of May 31, 2011 was as follows:


    Fiscal 2012               $2,275
    Fiscal 2013                1,902
    Fiscal 2014                1,554
    Fiscal 2015                1,155
    Fiscal 2016                  657
    Thereafter                   267
                              ------
    Total intangible assets
     subject to
     amortization              7,810
    In-process research and
     development                  50
                              ------
        Total intangible
         assets, net          $7,860
                              ======

(7) Income tax effects were calculated reflecting an effective GAAP tax
    rate of 25.1% and 25.6% in fiscal 2011 and 2010, respectively, and an
    effective non-GAAP tax rate of 25.3% and 27.1% in fiscal 2011 and 2010,
    respectively. The differences between our GAAP and non-GAAP tax rates
    in both fiscal 2011 and fiscal 2010 were primarily due to differences
    in jurisdictional tax rates and the related tax benefits attributable
    to our restructuring expenses in these periods, and were also due to
    income tax effects related to acquired tax exposures.

* Not meaningful




                            ORACLE  CORPORATION

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


                                                         May 31,   May 31,
                                                          2011      2010
                                                        --------- ---------
ASSETS

  Current Assets:
    Cash and cash equivalents                           $  16,163 $   9,914
    Marketable securities                                  12,685     8,555
    Trade receivables, net                                  6,628     5,585
    Inventories                                               303       259
    Deferred tax assets                                     1,189     1,159
    Prepaid expenses and other current assets               2,206     1,532
                                                        --------- ---------
      Total Current Assets                                 39,174    27,004

  Non-Current Assets:
      Property, plant and equipment, net                    2,857     2,763
      Intangible assets, net                                7,860     9,321
      Goodwill                                             21,553    20,425
      Deferred tax assets                                   1,076     1,267
      Other assets                                          1,015       798
                                                        --------- ---------
      Total Non-Current Assets                             34,361    34,574
                                                        --------- ---------

TOTAL ASSETS                                            $  73,535 $  61,578
                                                        ========= =========

LIABILITIES AND EQUITY

  Current Liabilities:
    Notes payable, current and other current borrowings $   1,150 $   3,145
    Accounts payable                                          701       775
    Accrued compensation and related benefits               2,320     1,895
    Deferred revenues                                       6,802     5,900
    Other current liabilities                               3,219     2,976
                                                        --------- ---------
      Total Current Liabilities                            14,192    14,691

  Non-Current Liabilities:
    Notes payable and other non-current borrowings         14,772    11,510
    Income taxes payable                                    3,169     2,695
    Deferred tax liabilities                                   59       424
    Other non-current liabilities                           1,098     1,059
                                                        --------- ---------
      Total Non-Current Liabilities                        19,098    15,688

  Equity                                                   40,245    31,199
                                                        --------- ---------

TOTAL LIABILITIES AND EQUITY                            $  73,535 $  61,578
                                                        ========= =========





                            ORACLE CORPORATION

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

                                                        Year Ended May 31,
                                                        ------------------
                                                          2011      2010
                                                        --------  --------
Cash Flows From Operating Activities:
  Net income                                            $  8,547  $  6,135
  Adjustments to reconcile net income to net cash
   provided by operating activities:
    Depreciation                                             368       298
    Amortization of intangible assets                      2,428     1,973
    Deferred income taxes                                   (253)     (511)
    Stock-based compensation                                 510       436
    Tax benefits on the exercise of stock options and
     vesting of restricted stock-based awards                325       203
    Excess tax benefits on the exercise of stock options
     and vesting of restricted stock-based awards           (215)     (110)
    Other, net                                                68        13
    Changes in operating assets and liabilities, net of
     effects from acquisitions:
      Increase in trade receivables, net                    (565)     (219)
      (Increase) decrease in inventories                     (28)       73
      Decrease in prepaid expenses and other assets           14       340
      Decrease in accounts payable and other liabilities    (120)     (360)
      Decrease in income taxes payable                       (96)      (79)
      Increase in deferred revenues                          231       489
                                                        --------  --------
        Net cash provided by operating activities         11,214     8,681
                                                        --------  --------
Cash Flows From Investing Activities:
  Purchases of marketable securities and other
   investments                                           (31,009)  (15,703)
  Proceeds from maturities and sales of marketable
   securities and other investments                       27,120    11,220
  Acquisitions, net of cash acquired                      (1,847)   (5,606)
  Capital expenditures                                      (450)     (230)
  Proceeds from sale of property                             105         -
                                                        --------  --------
        Net cash used for investing activities            (6,081)  (10,319)
                                                        --------  --------
Cash Flows From Financing Activities:
  Payments for repurchases of common stock                (1,160)     (992)
  Proceeds from issuances of common stock                  1,376       874
  Payments of dividends to stockholders                   (1,061)   (1,004)
  Proceeds from borrowings, net of issuance costs          4,354     7,220
  Repayments of borrowings                                (3,143)   (3,582)
  Excess tax benefits on the exercise of stock options
   and vesting of restricted stock-based awards              215       110
  Distributions to noncontrolling interests                  (65)      (59)
  Other, net                                                   -        97
                                                        --------  --------
      Net cash provided by financing activities              516     2,664
                                                        --------  --------
Effect of exchange rate changes on cash and cash
 equivalents                                                 600      (107)
                                                        --------  --------
Net increase in cash and cash equivalents                  6,249       919
                                                        --------  --------
Cash and cash equivalents at beginning of period           9,914     8,995
                                                        --------  --------
Cash and cash equivalents at end of period              $ 16,163  $  9,914
                                                        ========  ========





                             ORACLE CORPORATION
                      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  $9,948  $11,214

Capital
 Expenditures
 (2)         (261)   (230)   (199)   (230)   (293)   (369)   (441)    (450)
           ------  ------  ------  ------  ------  ------  ------  -------

Free Cash
 Flow      $8,492  $8,424  $7,979  $8,451  $8,467  $8,684  $9,507  $10,764
           ======  ======  ======  ======  ======  ======  ======  =======

% Growth
 over prior
 year          14%     11%      0%      9%      0%      3%     19%      27%

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

GAAP Net
 Income    $5,640  $5,802  $5,663  $6,135  $6,363  $6,776  $7,701  $ 8,547

Free Cash
 Flow as a
 % of Net
 Income       151%    145%    141%    138%    133%    128%    123%     126%

           ======  ======  ======  ======  ======  ======  ======  =======

(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
                      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
  Cloud Services                  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%)
  Cloud Services                   (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%)
  Cloud Services                   (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  $ 3,736  $ 9,235
  Software license updates and
   product support               3,450    3,645    3,740    3,961   14,796
                               -------  -------  -------  -------  -------
     Software Revenues           4,736    5,644    5,954    7,697   24,031

  Hardware systems products      1,079    1,112    1,035    1,157    4,382
  Hardware systems support         619      641      629      673    2,562
                               -------  -------  -------  -------  -------
     Hardware Systems Revenues   1,698    1,753    1,664    1,830    6,944

  Consulting                       666      738      722      787    2,914
  Cloud Services                   321      350      341      367    1,378
  Education                         81       97       83       94      355
                               -------  -------  -------  -------  -------
     Services Revenues           1,068    1,185    1,146    1,248    4,647

                               -------  -------  -------  -------  -------
        Total Revenues         $ 7,502  $ 8,582  $ 8,764  $10,775  $35,622
                               =======  =======  =======  =======  =======

AS REPORTED REVENUE GROWTH
 RATES
  New software licenses             25%      21%      29%      19%      23%
  Software license updates and
   product support                  11%      12%      13%      15%      13%
     Software Revenues              14%      15%      19%      17%      17%

  Hardware systems products          *        *      279%      (6%)    191%
  Hardware systems support           *        *      239%      12%     227%
     Hardware Systems Revenues       *        *      263%       0%     203%

  Consulting                         0%       7%      11%      10%       7%
  Cloud Services                    78%      86%      61%      24%      58%
  Education                         24%      25%      20%      (6%)     14%
     Services Revenues              18%      24%      23%      13%      19%

        Total Revenues              48%      47%      37%      13%      33%

CONSTANT CURRENCY GROWTH
 RATES (2)
  New software licenses             25%      23%      27%      12%      19%
  Software license updates and
   product support                  12%      13%      12%      10%      12%
     Software Revenues              15%      17%      17%      11%      15%

  Hardware systems products          *        *      274%     (11%)    184%
  Hardware systems support           *        *      234%       6%     218%
     Hardware Systems Revenues       *        *      258%      (5%)    195%

  Consulting                         1%       8%      10%       5%       6%
  Cloud Services                    80%      86%      58%      16%      54%
  Education                         24%      26%      19%     (11%)     12%
     Services Revenues              18%      25%      21%       7%      17%

        Total Revenues              49%      48%      35%       7%      30%

                               =======  =======  =======  =======  =======

GEOGRAPHIC REVENUES

 REVENUES
  Americas                     $ 3,904  $ 4,452  $ 4,509  $ 5,487  $18,352
  Europe, Middle East & Africa   2,381    2,738    2,815    3,564   11,497
  Asia Pacific                   1,217    1,392    1,440    1,724    5,773
                               -------  -------  -------  -------  -------
        Total Revenues         $ 7,502  $ 8,582  $ 8,764  $10,775  $35,622
                               =======  =======  =======  =======  =======


HEADCOUNT

 GEOGRAPHIC AREA
  Americas                      44,494   44,815   45,825   45,887
  Europe, Middle East & Africa  22,886   22,690   22,705   22,394
  Asia Pacific                  37,856   38,225   39,340   40,148
                               -------  -------  -------  -------  -------
        Total Company          105,236  105,730  107,870  108,429
                               =======  =======  =======  =======  =======

(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
                      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  $ 2,694  $ 6,626
   Software license updates
    and product support          2,316    2,443    2,523    2,663    9,945
                               -------  -------  -------  -------  -------
     Database and Middleware
      Revenues                 $ 3,253  $ 3,863  $ 4,098  $ 5,357  $16,571
                               =======  =======  =======  =======  =======

 AS REPORTED GROWTH RATES
   New software licenses            32%      21%      27%      18%      23%
   Software license updates
    and product support             12%      15%      15%      15%      14%
     Database and Middleware
      Revenues                      17%      17%      19%      17%      18%

 CONSTANT CURRENCY GROWTH
  RATES (2)
   New software licenses            32%      23%      26%      10%      19%
   Software license updates
    and product support             13%      16%      14%      10%      13%
     Database and Middleware
      Revenues                      18%      18%      18%      10%      15%

                               =======  =======  =======  =======  =======

 APPLICATIONS REVENUES
   New software licenses       $   349  $   579  $   639  $ 1,042  $ 2,609
   Software license updates
    and product support          1,134    1,202    1,217    1,298    4,851
                               -------  -------  -------  -------  -------
     Applications Revenues     $ 1,483  $ 1,781  $ 1,856  $ 2,340  $ 7,460
                               =======  =======  =======  =======  =======

 AS REPORTED GROWTH RATES
   New software licenses            10%      21%      34%      22%      23%
   Software license updates
    and product support              8%       8%      10%      16%      10%
     Applications Revenues           8%      12%      17%      18%      14%

 CONSTANT CURRENCY GROWTH
  RATES (2)
   New software licenses            10%      22%      31%      16%      20%
   Software license updates
    and product support              9%       9%       9%      10%       9%
     Applications Revenues           9%      13%      16%      12%      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
                      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  $1,284  $3,155
  Applications                         212     359     355     580   1,507
                                    ------  ------  ------  ------  ------
     New Software License Revenues  $  658  $1,030  $1,110  $1,864  $4,662
                                    ======  ======  ======  ======  ======
  Hardware Systems Products
   Revenues                         $  543  $  602  $  506  $  599  $2,248
                                    ======  ======  ======  ======  ======

AS REPORTED GROWTH RATES
  Database & Middleware                 44%     36%     40%     14%     28%
  Applications                          14%     26%     26%     20%     22%
     New Software License Revenues      33%     32%     35%     16%     26%
  Hardware Systems Products
   Revenues                              *       *     287%     (3%)   201%

CONSTANT CURRENCY GROWTH RATES (2)
  Database & Middleware                 43%     36%     39%     12%     27%
  Applications                          14%     26%     24%     18%     20%
     New Software License Revenues      32%     32%     34%     14%     24%
  Hardware Systems Products
   Revenues                              *       *     285%     (4%)   199%

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

EUROPE / MIDDLE EAST / AFRICA

  Database & Middleware             $  279  $  426  $  505  $  925  $2,137
  Applications                          73     148     197     308     724
                                    ------  ------  ------  ------  ------
     New Software License Revenues  $  352  $  574  $  702  $1,233  $2,861
                                    ======  ======  ======  ======  ======
  Hardware Systems Products
   Revenues                         $  338  $  329  $  330  $  341  $1,337
                                    ======  ======  ======  ======  ======

AS REPORTED GROWTH RATES
  Database & Middleware                 25%     (1%)    11%     23%     15%
  Applications                         (19%)    23%     47%     18%     20%
     New Software License Revenues      12%      5%     19%     22%     16%
  Hardware Systems Products
   Revenues                              *       *     246%    (13%)   176%

CONSTANT CURRENCY GROWTH RATES (2)
  Database & Middleware                 32%      7%     12%      9%     12%
  Applications                         (16%)    31%     46%      7%     16%
     New Software License Revenues      18%     12%     20%      9%     13%
  Hardware Systems Products
   Revenues                              *       *     246%    (21%)   165%

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

ASIA PACIFIC

  Database & Middleware             $  212  $  323  $  315  $  485  $1,334
  Applications                          64      72      87     154     378
                                    ------  ------  ------  ------  ------
     New Software License Revenues  $  276  $  395  $  402  $  639  $1,712
                                    ======  ======  ======  ======  ======
  Hardware Systems Products
   Revenues                         $  198  $  181  $  199  $  217  $  797
                                    ======  ======  ======  ======  ======

AS REPORTED GROWTH RATES
  Database & Middleware                 19%     27%     28%     20%     23%
  Applications                          54%     (1%)    45%     41%     33%
     New Software License Revenues      26%     21%     32%     24%     25%
  Hardware Systems Products
   Revenues                              *       *     325%     (4%)   191%

CONSTANT CURRENCY GROWTH RATES (2)
  Database & Middleware                 13%     22%     20%      8%     15%
  Applications                          47%     (5%)    34%     27%     24%
     New Software License Revenues      19%     16%     23%     12%     16%
  Hardware Systems Products
   Revenues                              *       *     295%    (13%)   173%

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

TOTAL COMPANY

  Database & Middleware             $  937  $1,420  $1,575  $2,694  $6,626
  Applications                         349     579     639   1,042   2,609
                                    ------  ------  ------  ------  ------
     New Software License Revenues  $1,286  $1,999  $2,214  $3,736  $9,235
                                    ======  ======  ======  ======  ======
  Hardware Systems Products
   Revenues                         $1,079  $1,112  $1,035  $1,157  $4,382
                                    ======  ======  ======  ======  ======

AS REPORTED GROWTH RATES
  Database & Middleware                 32%     21%     27%     18%     23%
  Applications                          10%     21%     34%     22%     23%
     New Software License Revenues      25%     21%     29%     19%     23%
  Hardware Systems Products
   Revenues                              *       *     279%     (6%)   191%

CONSTANT CURRENCY GROWTH RATES (2)
  Database & Middleware                 32%     23%     26%     10%     19%
  Applications                          10%     22%     31%     16%     20%
     New Software License Revenues      25%     23%     27%     12%     19%
  Hardware Systems Products
   Revenues                              *       *     274%    (11%)   184%

                                    ======  ======  ======  ======  ======

(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
                            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