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Oracle Doubles Dividend; Cloud SaaS Revenues Up 50%, Engineered Systems Up 45%

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REDWOOD SHORES, CA -- (Marketwired) -- 06/20/13 -- Oracle Corporation (NASDAQ: ORCL) today announced that fiscal 2013 Q4 GAAP total revenues were unchanged at $10.9 billion, while non-GAAP total revenues were unchanged at $11.0 billion. Both GAAP and non-GAAP new software licenses and cloud software subscriptions revenues were up 1% to $4.0 billion. Software license updates and product support revenues were up 6% to $4.4 billion. Hardware systems products revenues were $849 million. GAAP operating income was up 9% to $5.0 billion, and GAAP operating margin was 46%. Non-GAAP operating income was up 1% to $5.6 billion, and non-GAAP operating margin was 51%. GAAP net income was up 10% to $3.8 billion, while non-GAAP net income was down 1% to $4.1 billion. GAAP earnings per share were up 17% to $0.80, while non-GAAP earnings per share were up 5% to $0.87. GAAP operating cash flow on a trailing twelve-month basis was $14.2 billion.

Without the impact of the US dollar strengthening compared to foreign currencies, Oracle's reported Q4 GAAP earnings per share would have been approximately $0.01 higher at $0.81, up 19%; and Q4 non-GAAP earnings per share would have been approximately $0.01 higher. GAAP total revenues also would have been up 2%, non-GAAP total revenue would have been up 1%, and new software licenses and cloud software subscription revenues would have been up 2%.

For fiscal year 2013, GAAP total revenues were unchanged at $37.2 billion, while non-GAAP total revenues were unchanged at $37.3 billion. GAAP new software licenses and cloud software subscriptions revenues were up 4% to $10.3 billion, while non-GAAP new software licenses and cloud software subscriptions revenues were up 4% to $10.4 billion. GAAP software license updates and product support revenues were up 6% to $17.1 billion, while non-GAAP software license updates and product support revenues were up 6% to $17.2 billion. Hardware systems products revenues were $3.0 billion. GAAP operating income was up 7% to $14.7 billion, and GAAP operating margin was 39%. Non-GAAP operating income was up 2% to $17.6 billion, and non-GAAP operating margin was 47%. GAAP net income was up 9% to $10.9 billion, while non-GAAP net income was up 3% to $13.0 billion. GAAP earnings per share were $2.26, up 15% compared to last year while non-GAAP earnings per share were $2.68, up 9%.

"A record level non-GAAP operating margin of 47% in FY13 enabled us to generate over $14 billion in operating cash flow during the year," said Oracle President and CFO, Safra Catz. "We returned almost 90% of that to shareholders through dividends and share repurchases while increasing the cash on our balance sheet to $32 billion. Consistently increasing our margins, cash flow and cash balance has allowed us to double our current quarterly dividend."

"Oracle's HCM Cloud, CRM Cloud and ERP Cloud grew 50% as we added over 500 new SaaS customers in Q4 alone," said Oracle President Mark Hurd. "Our annualized SaaS revenue run rate is over $1 billion, making us a strong number two in cloud applications -- we are larger than SAP and Workday combined. Furthermore, in Q4 our HCM cloud alone generated more SaaS revenue and added more new Fusion HCM customers than Workday added HCM and ERP customers combined in their most recent quarter."

"Exadata, Exalogic, Exalytics, SPARC SuperCluster and our other engineered systems grew at a rate of 45% in Q4 as we took considerable market share from our primary competitor -- IBM P-Series -- which declined 32% in their most recent quarter," said Oracle CEO, Larry Ellison. "We sold over 1,200 engineered systems in the quarter and over 3,000 during the year. Our fast growing engineered systems business is now more than one-third of our overall hardware business which is one of the reasons we believe hardware will be a growth story in Oracle's FY14."

Oracle also announced that its Board of Directors declared a quarterly cash dividend of $0.12 per share of outstanding common stock, reflecting a 100% increase over the current quarterly dividend of $0.06. Oracle's CEO and largest stockholder did not participate in the deliberation or the vote on this matter. This increased dividend will be paid to stockholders of record as of the close of business on July 12, 2013, with a payment date of August 2, 2013.

Oracle also announced that its Board of Directors authorized the repurchase of up to an additional $12.0 billion of common stock under its existing share repurchase program in future quarters.

Oracle also announced that it has applied to list its common stock on the New York Stock Exchange under its current symbol "ORCL". After careful consideration and deliberation, the Board of Directors of Oracle determined that the proposed transfer of Oracle's common stock listing to the New York Stock Exchange would be in the best interests of its stockholders, customers and partners. Subject to the approval by the NYSE of Oracle's listing application, Oracle expects that its common stock will begin trading on the NYSE on July 15, 2013. Until the transfer is completed, Oracle will continue to trade on the NASDAQ Stock Market under the symbol "ORCL".

Q4 Fiscal 2013 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) 312-9303, Passcode: 849181. To access the live webcast of this event, please visit the Oracle Investor Relations website at http://www.oracle.com/investor. In addition, Oracle's Q4 results and Fiscal 2013 financial tables are available on the Oracle Investor Relations website.

A replay of the conference call will also be available by dialing (719) 457-0820 or (888) 203-1112, Passcode: 2970367.

About Oracle
Oracle engineers hardware and software to work together in the cloud and in your data center. For more information about Oracle (NASDAQ: ORCL), visit www.oracle.com or contact Investor Relations at investor_us@oracle.com or (650) 506-4073.

Trademarks
Oracle and Java are registered trademarks of Oracle and/or its affiliates. Other names may be trademarks of their respective owners.

"Safe Harbor" Statement: Statements in this press release relating to Oracle's future plans, expectations, beliefs, intentions and prospects, including statements regarding hardware being a growth story in FY14 and when Oracle's common stock will begin trading on the NYSE, 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 current European economic crisis and slowing economic conditions in other parts of the world, can adversely affect our business, results of operations and financial condition, including our revenue growth and profitability, which in turn could adversely affect our stock price. (2) We may fail to achieve our financial forecasts due to such factors as delays or size reductions in transactions, fewer large transactions in a particular quarter, unanticipated fluctuations in currency exchange rates, delays in delivery of new products or releases or a decline in our renewal rates for support contracts. (3) Our hardware systems revenues and profitability could decline further, 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. (6) Our periodic workforce restructurings, including reorganizations of our sales force, can be disruptive. (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, cloud software subscriptions 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 20, 2013. Oracle undertakes no duty to update any statement in light of new information or future events.


ORACLE CORPORATION Q4 FISCAL 2013 FINANCIAL RESULTS CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS ($ in millions, except per share data) Three Months Ended May 31, ----------------------------------- % Increase (Decrease) in % Increase Constant % of % of (Decrease) Currency 2013 Revenues 2012 Revenues in US $ (1) ------- -------- ------- -------- ---------- ----------REVENUES New software licenses and cloud software subscriptions $ 4,026 37% $ 3,985 37% 1% 2% Software license updates and product support 4,402 40% 4,152 38% 6% 8% ------- -------- ------- -------- Software Revenues 8,428 77% 8,137 75% 4% 5% ------- -------- ------- -------- Hardware systems products 849 8% 977 9% (13%) (12%) Hardware systems support 582 5% 600 5% (3%) (1%) ------- -------- ------- -------- Hardware Systems Revenues 1,431 13% 1,577 14% (9%) (8%) ------- -------- ------- -------- Services Revenues 1,088 10% 1,202 11% (9%) (8%) ------- -------- ------- -------- Total Revenues 10,947 100% 10,916 100% 0% 2% ------- -------- ------- --------OPERATING EXPENSES Sales and marketing 2,208 20% 2,100 19% 5% 6% Software license updates and product support 316 3% 327 3% (4%) (2%) Hardware systems products 413 4% 476 4% (13%) (12%) Hardware systems support 220 2% 248 2% (11%) (10%) Services 879 8% 955 9% (8%) (7%) Research and development 1,264 12% 1,226 11% 3% 4% General and administrative 274 2% 278 3% (1%) 0% Amortization of intangible assets 596 5% 640 6% (7%) (7%) Acquisition related and other (2) (257) (2%) (7) 0% (3,524%) (3,515%) Restructuring 34 0% 77 1% (56%) (56%) ------- -------- ------- -------- Total Operating Expenses 5,947 54% 6,320 58% (6%) (5%) ------- -------- ------- --------OPERATING INCOME 5,000 46% 4,596 42% 9% 11% Interest expense (210) (2%) (194) (2%) 9% 9% Non-operating income (expense), net 35 0% (20) 0% 280% 281% ------- -------- ------- --------INCOME BEFORE PROVISION FOR INCOME TAXES 4,825 44% 4,382 40% 10% 12% ------- -------- ------- -------- Provision for income taxes 1,018 9% 931 8% 9% 11% ------- -------- ------- --------NET INCOME $ 3,807 35% $ 3,451 32% 10% 12% ======= ======== ======= ========EARNINGS PER SHARE: Basic $ 0.81 $ 0.70 Diluted $ 0.80 $ 0.69WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: Basic 4,684 4,950 Diluted 4,756 5,027(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, 2012, 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, 2013 compared with the corresponding prior year period decreased our revenues by 2 percentage points, operating expenses by 1 percentage point and operating income by 2 percentage points.(2) Acquisition related and other expenses for the quarter ended May 31, 2013 included a net benefit of $269 million due to an acquisition related item. ORACLE CORPORATION Q4 FISCAL 2013 FINANCIAL RESULTS RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1) ($ in millions, except per share data) Three Months Ended May 31, ------------------------------------------------- 2013 2013 2012 2012 GAAP Adj. Non-GAAP GAAP Adj. Non-GAAP ------- ----- -------- ------- ----- --------TOTAL REVENUES (3) (4) $10,947 $ 14 $ 10,961 $10,916 $ 34 $ 10,950TOTAL SOFTWARE REVENUES (3) $ 8,428 $ 10 $ 8,438 $ 8,137 $ 30 $ 8,167 New software licenses and cloud software subscriptions (3) 4,026 8 4,034 3,985 22 4,007 Software license updates and product support 4,402 2 4,404 4,152 8 4,160TOTAL HARDWARE SYSTEMS REVENUES (4) $ 1,431 $ 4 $ 1,435 $ 1,577 $ 4 $ 1,581 Hardware systems products 849 - 849 977 - 977 Hardware systems support (4) 582 4 586 600 4 604TOTAL OPERATING EXPENSES $ 5,947 $(559) $ 5,388 $ 6,320 $(882) $ 5,438 Stock-based compensation (5) 186 (186) - 172 (172) - Amortization of intangible assets (6) 596 (596) - 640 (640) - Acquisition related and other (257) 257 - (7) 7 - Restructuring 34 (34) - 77 (77) -OPERATING INCOME $ 5,000 $ 573 $ 5,573 $ 4,596 $ 916 $ 5,512OPERATING MARGIN % 46% 51% 42% 50%INCOME TAX EFFECTS (7) $ 1,018 $ 266 $ 1,284 $ 931 $ 224 $ 1,155NET INCOME $ 3,807 $ 307 $ 4,114 $ 3,451 $ 692 $ 4,143DILUTED EARNINGS PER SHARE $ 0.80 $ 0.87 $ 0.69 $ 0.82DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 4,756 - 4,756 5,027 - 5,027 % Increase (Decrease) % Increase (Decrease) in Constant Currency in US $ (2) --------------------- --------------------- GAAP Non-GAAP GAAP Non-GAAP ---------- ---------- ---------- ----------TOTAL REVENUES (3) (4) 0% 0% 2% 1%TOTAL SOFTWARE REVENUES (3) 4% 3% 5% 5% New software licenses and cloud software subscriptions (3) 1% 1% 2% 2% Software license updates and product support 6% 6% 8% 8%TOTAL HARDWARE SYSTEMS REVENUES (4) (9%) (9%) (8%) (8%) Hardware systems products (13%) (13%) (12%) (12%) Hardware systems support (4) (3%) (3%) (1%) (1%)TOTAL OPERATING EXPENSES (6%) (1%) (5%) 0% Stock-based compensation (5) 8% * 8% * Amortization of intangible assets (6) (7%) * (7%) * Acquisition related and other (3,524%) * (3,515%) * Restructuring (56%) * (56%) *OPERATING INCOME 9% 1% 11% 3%OPERATING MARGIN % 357 bp. 51 bp. 375 bp. 59 bp.INCOME TAX EFFECTS (7) 9% 11% 11% 13%NET INCOME 10% (1%) 12% 1%DILUTED EARNINGS PER SHARE 17% 5% 19% 7%DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING (5%) (5%) (5%) (5%)(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, 2012, 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, 2013, approximately $6 million in estimated revenues related to assumed cloud software subscriptions contracts will not be recognized for fiscal 2014 due to business combination accounting rules.(4) As of May 31, 2013, approximately $6 million in estimated revenues related to hardware systems support contracts will not be recognized for fiscal 2014 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, 2013 May 31, 2012 -------------------------- -------------------------- GAAP Adj. Non-GAAP GAAP Adj. Non-GAAP -------- ------- -------- -------- ------- -------- Sales and marketing $ 35 $ (35) $ - $ 35 $ (35) $ - Software license updates and product support 5 (5) - 5 (5) - Hardware systems products 1 (1) - - - - Hardware systems support 1 (1) - 1 (1) - Services 8 (8) - 7 (7) - Research and development 93 (93) - 82 (82) - General and administrative 43 (43) - 42 (42) - -------- ------- -------- -------- ------- -------- Subtotal 186 (186) - 172 (172) - -------- ------- -------- -------- ------- -------- Acquisition related and other 4 (4) - 12 (12) - -------- ------- -------- -------- ------- -------- Total stock- based compensation $ 190 $ (190) $ - $ 184 $ (184) $ - ======== ======= ======== ======== ======= ========(6) Estimated future annual amortization expense related to intangible assets as of May 31, 2013 was as follows: Fiscal 2014 $ 2,123 Fiscal 2015 1,656 Fiscal 2016 1,094 Fiscal 2017 523 Fiscal 2018 397 Thereafter 802 -------- Total intangible assets subject to amortization 6,595 In-process research and development 45 -------- Total intangible assets, net $ 6,640 ========(7) Income tax effects were calculated reflecting an effective GAAP tax rate of 21.1% and 21.2% in the fourth quarter of fiscal 2013 and 2012, respectively, and an effective non-GAAP tax rate of 23.8% and 21.8% in the fourth quarter of fiscal 2013 and 2012, respectively. The difference between our GAAP and non-GAAP tax rates in the fourth quarter of fiscal 2013 was primarily due to the net tax effects of acquisition related items, including the tax effect of amortization of intangible assets. The difference between our GAAP and non-GAAP tax rates in the fourth quarter of fiscal 2012 was primarily due to the disproportionate rate impact of certain discrete items, differences in jurisdictional tax rates and related tax benefits attributable to our restructuring expenses, and income tax effects related to acquired tax exposures in the period.* Not meaningful ORACLE CORPORATION FISCAL 2013 YEAR TO DATE FINANCIAL RESULTS CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS ($ in millions, except per share data) Year Ended May 31, ----------------------------------- % Increase (Decrease) in % Increase Constant % of % of (Decrease) Currency 2013 Revenues 2012 Revenues in US $ (1) ------- -------- ------- -------- ---------- ----------REVENUES New software licenses and cloud software subscriptions $10,321 28% $ 9,906 27% 4% 6% Software license updates and product support 17,142 46% 16,210 43% 6% 8% ------- -------- ------- -------- Software Revenues 27,463 74% 26,116 70% 5% 7% ------- -------- ------- -------- Hardware systems products 3,033 8% 3,827 10% (21%) (19%) Hardware systems support 2,313 6% 2,475 7% (7%) (4%) ------- -------- ------- -------- Hardware Systems Revenues 5,346 14% 6,302 17% (15%) (13%) ------- -------- ------- -------- Services Revenues 4,371 12% 4,703 13% (7%) (5%) ------- -------- ------- -------- Total Revenues 37,180 100% 37,121 100% 0% 2% ------- -------- ------- --------OPERATING EXPENSES Sales and marketing 7,328 20% 7,127 19% 3% 5% Software license updates and product support 1,175 3% 1,226 3% (4%) (2%) Hardware systems products 1,501 4% 1,843 5% (19%) (17%) Hardware systems support 890 2% 1,046 3% (15%) (13%) Services 3,547 10% 3,743 10% (5%) (3%) Research and development 4,850 13% 4,523 12% 7% 8% General and administrative 1,072 3% 1,126 3% (5%) (3%) Amortization of intangible assets 2,385 7% 2,430 7% (2%) (2%) Acquisition related and other (2) (604) (2%) 56 0% (1,183%) (1,200%) Restructuring 352 1% 295 1% 19% 23% ------- -------- ------- -------- Total Operating Expenses 22,496 61% 23,415 63% (4%) (2%) ------- -------- ------- --------OPERATING INCOME 14,684 39% 13,706 37% 7% 10% Interest expense (797) (2%) (766) (2%) 4% 4% Non-operating income, net 11 0% 22 0% (49%) 4% ------- -------- ------- --------INCOME BEFORE PROVISION FOR INCOME TAXES 13,898 37% 12,962 35% 7% 10% ------- -------- ------- -------- Provision for income taxes 2,973 8% 2,981 8% 0% 3% ------- -------- ------- --------NET INCOME $10,925 29% $ 9,981 27% 9% 13% ======= ======== ======= ========EARNINGS PER SHARE: Basic $ 2.29 $ 1.99 Diluted $ 2.26 $ 1.96WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: Basic 4,769 5,015 Diluted 4,844 5,095(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, 2012, 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, 2013 compared with the corresponding prior year period decreased our revenues by 2 percentage points, operating expenses by 2 percentage points and operating income by 3 percentage points.(2) Acquisition related and other expenses for the year ended May 31, 2013 included a benefit of $306 million related to certain litigation and a net benefit of $387 million due to an acquisition related item. ORACLE CORPORATION FISCAL 2013 YEAR TO DATE FINANCIAL RESULTS RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1) ($ in millions, except per share data) Year Ended May 31, ----------------------------------------------------- 2013 2013 2012 2012 GAAP Adj. Non-GAAP GAAP Adj. Non-GAAP ------- ------- -------- -------- ------- --------TOTAL REVENUES (3) (4) $37,180 $ 73 $ 37,253 $ 37,121 $ 100 $ 37,221TOTAL SOFTWARE REVENUES (3) $27,463 $ 59 $ 27,522 $ 26,116 $ 70 $ 26,186 New software licenses and cloud software subscriptions (3) 10,321 45 10,366 9,906 22 9,928 Software license updates and product support 17,142 14 17,156 16,210 48 16,258TOTAL HARDWARE SYSTEMS REVENUES (4) $ 5,346 $ 14 $ 5,360 $ 6,302 $ 30 $ 6,332 Hardware systems products 3,033 - 3,033 3,827 - 3,827 Hardware systems support (4) 2,313 14 2,327 2,475 30 2,505TOTAL OPERATING EXPENSES $22,496 $(2,855) $ 19,641 $ 23,415 $(3,407) $ 20,008 Stock-based compensation (5) 722 (722) - 626 (626) - Amortization of intangible assets (6) 2,385 (2,385) - 2,430 (2,430) - Acquisition related and other (604) 604 - 56 (56) - Restructuring 352 (352) - 295 (295) -OPERATING INCOME $14,684 $ 2,928 $ 17,612 $ 13,706 $ 3,507 $ 17,213OPERATING MARGIN % 39% 47% 37% 46%INCOME TAX EFFECTS (7) $ 2,973 $ 896 $ 3,869 $ 2,981 $ 967 $ 3,948NET INCOME $10,925 $ 2,032 $ 12,957 $ 9,981 $ 2,540 $ 12,521DILUTED EARNINGS PER SHARE $ 2.26 $ 2.68 $ 1.96 $ 2.46DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 4,844 - 4,844 5,095 - 5,095 % Increase (Decrease) % Increase (Decrease) in Constant Currency in US $ (2) --------------------- --------------------- GAAP Non-GAAP GAAP Non-GAAP ---------- ---------- ---------- ----------TOTAL REVENUES (3) (4) 0% 0% 2% 2%TOTAL SOFTWARE REVENUES (3) 5% 5% 7% 7% New software licenses and cloud software subscriptions (3) 4% 4% 6% 6% Software license updates and product support 6% 6% 8% 8%TOTAL HARDWARE SYSTEMS REVENUES (4) (15%) (15%) (13%) (14%) Hardware systems products (21%) (21%) (19%) (19%) Hardware systems support (4) (7%) (7%) (4%) (5%)TOTAL OPERATING EXPENSES (4%) (2%) (2%) 0% Stock-based compensation (5) 16% * 16% * Amortization of intangible assets (6) (2%) * (2%) * Acquisition related and other (1,183%) * (1,200%) * Restructuring 19% * 23% *OPERATING INCOME 7% 2% 10% 4%OPERATING MARGIN % 257 bp. 103 bp. 277 bp. 106 bp.INCOME TAX EFFECTS (7) 0% (2%) 3% 0%NET INCOME 9% 3% 13% 6%DILUTED EARNINGS PER SHARE 15% 9% 18% 11%DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING (5%) (5%) (5%) (5%)(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, 2012, 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, 2013, approximately $6 million in estimated revenues related to assumed cloud software subscriptions contracts will not be recognized for fiscal 2014 due to business combination accounting rules.(4) As of May 31, 2013, approximately $6 million in estimated revenues related to hardware systems support contracts will not be recognized for fiscal 2014 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, 2013 May 31, 2012 -------------------------- -------------------------- GAAP Adj. Non-GAAP GAAP Adj. Non-GAAP -------- ------- -------- -------- ------- -------- Sales and marketing $ 147 $ (147) $ - $ 122 $ (122) $ - Software license updates and product support 20 (20) - 18 (18) - Hardware systems products 3 (3) - 1 (1) - Hardware systems support 5 (5) - 5 (5) - Services 31 (31) - 23 (23) - Research and development 352 (352) - 295 (295) - General and administrative 164 (164) - 162 (162) - -------- ------- -------- -------- ------- -------- Subtotal 722 (722) - 626 (626) - -------- ------- -------- -------- ------- -------- Acquisition related and other 33 (33) - 33 (33) - -------- ------- -------- -------- ------- -------- Total stock- based compensation $ 755 $ (755) $ - $ 659 $ (659) $ - ======== ======= ======== ======== ======= ========




(6) Estimated future annual amortization expense related to intangible assets as of May 31, 2013 was as follows: Fiscal 2014 $ 2,123 Fiscal 2015 1,656 Fiscal 2016 1,094 Fiscal 2017 523 Fiscal 2018 397 Thereafter 802 -------- Total intangible assets subject to amortization 6,595 In-process research and development 45 -------- Total intangible assets, net $ 6,640 ========(7) Income tax effects were calculated reflecting an effective GAAP tax rate of 21.4% and 23.0% in fiscal 2013 and 2012, respectively, and an effective non-GAAP tax rate of 23.0% and 24.0% in fiscal 2013 and 2012, respectively. The differences between our GAAP and non-GAAP tax rates in fiscal 2013 were primarily due to the net tax effects of acquisition related items, including the tax effect of amortization of intangible assets. The difference between our GAAP and non-GAAP tax rates in fiscal 2012 was primarily due to the disproportionate rate impact of certain discrete items, income tax effects related to acquired tax exposures, and differences in jurisdictional tax rates and related tax benefits attributable to our restructuring expenses in the period.* Not meaningful ORACLE CORPORATION FISCAL 2013 FINANCIAL RESULTS CONDENSED CONSOLIDATED BALANCE SHEETS ($ in millions) May 31, May 31, 2013 2012 ------------- -------------ASSETS Current Assets: Cash and cash equivalents $ 14,613 $ 14,955 Marketable securities 17,603 15,721 Trade receivables, net 6,049 6,377 Inventories 240 158 Deferred tax assets 974 877 Prepaid expenses and other current assets 2,213 1,935 ------------- ------------- Total Current Assets 41,692 40,023 Non-Current Assets: Property, plant and equipment, net 3,053 3,021 Intangible assets, net 6,640 7,899 Goodwill 27,343 25,119 Deferred tax assets 766 595 Other assets 2,318 1,670 ------------- ------------- Total Non-Current Assets 40,120 38,304 ------------- -------------TOTAL ASSETS $ 81,812 $ 78,327 ============= =============LIABILITIES AND EQUITY Current Liabilities: Notes payable, current and other current borrowings $ - $ 2,950 Accounts payable 419 438 Accrued compensation and related benefits 1,851 2,002 Income taxes payable 911 528 Deferred revenues 7,118 7,035 Other current liabilities 2,573 2,435 ------------- ------------- Total Current Liabilities 12,872 15,388 Non-Current Liabilities: Notes payable and other non-current borrowings 18,494 13,524 Income taxes payable 3,899 3,759 Other non-current liabilities 1,402 1,569 ------------- ------------- Total Non-Current Liabilities 23,795 18,852 Equity 45,145 44,087 ------------- -------------TOTAL LIABILITIES AND EQUITY $ 81,812 $ 78,327 ============= =============




ORACLE CORPORATION FISCAL 2013 FINANCIAL RESULTS CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS ($ in millions) Year Ended May 31, -------------------------- 2013 2012 ------------ ------------Cash Flows From Operating Activities: Net income $ 10,925 $ 9,981 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 546 486 Amortization of intangible assets 2,385 2,430 Deferred income taxes (117) 9 Stock-based compensation 755 659 Tax benefits on the exercise of stock options and vesting of restricted stock- based awards 410 182 Excess tax benefits on the exercise of stock options and vesting of restricted stock- based awards (241) (97) Other, net 155 84 Changes in operating assets and liabilities, net of effects from acquisitions: Decrease in trade receivables, net 385 84 (Increase) decrease in inventories (66) 150 Increase in prepaid expenses and other assets (555) (51) Decrease in accounts payable and other liabilities (541) (720) Increase in income taxes payable 35 54 Increase in deferred revenues 148 492 ------------ ------------ Net cash provided by operating activities 14,224 13,743 ------------ ------------Cash Flows From Investing Activities: Purchases of marketable securities and other investments (32,160) (38,625) Proceeds from maturities and sales of marketable securities and other investments 30,159 35,594 Acquisitions, net of cash acquired (3,305) (4,702) Capital expenditures (650) (648) ------------ ------------ Net cash used for investing activities (5,956) (8,381) ------------ ------------Cash Flows From Financing Activities: Payments for repurchases of common stock (11,021) (5,856) Proceeds from issuances of common stock 1,527 733 Payments of dividends to stockholders (1,433) (1,205) Proceeds from borrowings, net of issuance costs 4,974 1,700 Repayments of borrowings (2,950) (1,405) Excess tax benefits on the exercise of stock options and vesting of restricted stock-based awards 241 97 Distributions to noncontrolling interests (31) (163) Other, net 193 - ------------ ------------ Net cash used for financing activities (8,500) (6,099) ------------ ------------Effect of exchange rate changes on cash and cash equivalents (110) (471) ------------ ------------Net decrease in cash and cash equivalents (342) (1,208) ------------ ------------Cash and cash equivalents at beginning of period 14,955 16,163 ------------ ------------Cash and cash equivalents at end of period $ 14,613 $ 14,955 ============ ============ ORACLE CORPORATION FISCAL 2013 FINANCIAL RESULTS FREE CASH FLOW - TRAILING 4-QUARTERS (1) ($ in millions) Fiscal 2012 Fiscal 2013 ------------------------------- ------------------------------- Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 ------- ------- ------- ------- ------- ------- ------- -------GAAP Operating Cash Flow $12,818 $13,129 $13,463 $13,743 $13,993 $13,533 $13,717 $14,224Capital Expenditures (2) (492) (500) (509) (648) (627) (710) (684) (650) ------- ------- ------- ------- ------- ------- ------- -------Free Cash Flow $12,326 $12,629 $12,954 $13,095 $13,366 $12,823 $13,033 $13,574 ======= ======= ======= ======= ======= ======= ======= =======% Growth over prior year 46% 45% 36% 22% 8% 2% 1% 4% ------- ------- ------- ------- ------- ------- ------- -------GAAP Net Income $ 9,035 $ 9,356 $ 9,738 $ 9,981 $10,175 $10,564 $10,571 $10,925Free Cash Flow as a % of Net Income 136% 135% 133% 131% 131% 121% 123% 124%(1) To supplement our statements of cash flows presented on a GAAP basis, we use non-GAAP measures of cash flows on a trailing 4-quarter basis to analyze cash flow generated from operations. We believe free cash flow is also useful as one of the bases for comparing our performance with our competitors. The presentation of non-GAAP free cash flow is not meant to be considered in isolation or as an alternative to net income as an indicator of our performance, or as an alternative to cash flows from operating activities as a measure of liquidity.(2) Derived from capital expenditures as reported in cash flows from investing activities as per our consolidated statements of cash flows presented in accordance with GAAP. ORACLE CORPORATION FISCAL 2013 FINANCIAL RESULTS SUPPLEMENTAL ANALYSIS OF GAAP REVENUES AND HEADCOUNT (1) ($ in millions) Fiscal 2012 ---------------------------------------------------- Q1 Q2 Q3 Q4 TOTAL -------- -------- -------- -------- --------REVENUES New software licenses and cloud software subscriptions $ 1,498 $ 2,048 $ 2,374 $ 3,985 $ 9,906 Software license updates and product support 4,022 3,986 4,051 4,152 16,210 -------- -------- -------- -------- -------- Software Revenues 5,520 6,034 6,425 8,137 26,116 Hardware systems products 1,029 953 869 977 3,827 Hardware systems support 645 625 604 600 2,475 -------- -------- -------- -------- -------- Hardware Systems Revenues 1,674 1,578 1,473 1,577 6,302 Services Revenues 1,180 1,180 1,141 1,202 4,703 -------- -------- -------- -------- -------- Total Revenues $ 8,374 $ 8,792 $ 9,039 $ 10,916 $ 37,121 ======== ======== ======== ======== ========AS REPORTED REVENUE GROWTH RATES New software licenses and cloud software subscriptions 17% 2% 7% 7% 7% Software license updates and product support 17% 9% 8% 5% 10% Software Revenues 17% 7% 8% 6% 9% Hardware systems products (5%) (14%) (16%) (16%) (13%) Hardware systems support 4% (2%) (4%) (11%) (3%) Hardware Systems Revenues (1%) (10%) (11%) (14%) (9%) Services Revenues 10% 0% 0% (4%) 1% Total Revenues 12% 2% 3% 1% 4%CONSTANT CURRENCY GROWTH RATES (2) New software licenses and cloud software subscriptions 11% 3% 8% 11% 8% Software license updates and product support 10% 9% 9% 8% 9% Software Revenues 11% 7% 9% 10% 9% Hardware systems products (11%) (14%) (16%) (13%) (14%) Hardware systems support (3%) (3%) (3%) (7%) (4%) Hardware Systems Revenues (8%) (10%) (11%) (11%) (10%) Services Revenues 5% 0% 1% 0% 1% Total Revenues 5% 2% 4% 5% 4%GEOGRAPHIC REVENUESREVENUES Americas $ 4,226 $ 4,532 $ 4,707 $ 5,771 $ 19,236 Europe, Middle East & Africa 2,704 2,756 2,787 3,314 11,561 Asia Pacific 1,444 1,504 1,545 1,831 6,324 -------- -------- -------- -------- -------- Total Revenues $ 8,374 $ 8,792 $ 9,039 $ 10,916 $ 37,121 ======== ======== ======== ======== ========HEADCOUNTGEOGRAPHIC AREA Americas 46,338 46,672 47,884 48,901 Europe, Middle East & Africa 22,210 22,725 22,852 22,957 Asia Pacific 40,840 41,901 42,908 43,308 -------- -------- -------- -------- -------- Total Company 109,388 111,298 113,644 115,166 ======== ======== ======== ======== ======== Fiscal 2013 --------------------------------------------------- Q1 Q2 Q3 Q4 TOTAL -------- -------- -------- -------- -------REVENUES New software licenses and cloud software subscriptions $ 1,574 $ 2,389 $ 2,332 $ 4,026 $10,321 Software license updates and product support 4,140 4,260 4,340 4,402 17,142 -------- -------- -------- -------- ------- Software Revenues 5,714 6,649 6,672 8,428 27,463 Hardware systems products 779 734 671 849 3,033 Hardware systems support 574 587 570 582 2,313 -------- -------- -------- -------- ------- Hardware Systems Revenues 1,353 1,321 1,241 1,431 5,346 Services Revenues 1,114 1,124 1,045 1,088 4,371 -------- -------- -------- -------- ------- Total Revenues $ 8,181 $ 9,094 $ 8,958 $ 10,947 $37,180 ======== ======== ======== ======== =======AS REPORTED REVENUE GROWTH RATES New software licenses and cloud software subscriptions 5% 17% (2%) 1% 4% Software license updates and product support 3% 7% 7% 6% 6% Software Revenues 4% 10% 4% 4% 5% Hardware systems products (24%) (23%) (23%) (13%) (21%) Hardware systems support (11%) (6%) (6%) (3%) (7%) Hardware Systems Revenues (19%) (16%) (16%) (9%) (15%) Services Revenues (6%) (5%) (8%) (9%) (7%) Total Revenues (2%) 3% (1%) 0% 0%CONSTANT CURRENCY GROWTH RATES (2) New software licenses and cloud software subscriptions 10% 18% 0% 2% 6% Software license updates and product support 8% 8% 8% 8% 8% Software Revenues 9% 11% 5% 5% 7% Hardware systems products (21%) (23%) (22%) (12%) (19%) Hardware systems support (6%) (5%) (5%) (1%) (4%) Hardware Systems Revenues (15%) (16%) (15%) (8%) (13%) Services Revenues 0% (3%) (7%) (8%) (5%) Total Revenues 3% 5% 0% 2% 2%GEOGRAPHIC REVENUESREVENUES Americas $ 4,324 $ 4,787 $ 4,698 $ 5,911 $19,719 Europe, Middle East & Africa 2,383 2,701 2,745 3,328 11,158 Asia Pacific 1,474 1,606 1,515 1,708 6,303 -------- -------- -------- -------- ------- Total Revenues $ 8,181 $ 9,094 $ 8,958 $ 10,947 $37,180 ======== ======== ======== ======== =======HEADCOUNTGEOGRAPHIC AREA Americas 49,145 49,584 50,402 51,519 Europe, Middle East & Africa 22,584 22,594 22,592 22,860 Asia Pacific 44,170 45,051 45,663 45,855 -------- -------- -------- -------- ------- Total Company 115,899 117,229 118,657 120,234 ======== ======== ======== ======== =======(1) The sum of the quarterly financial information may vary from year-to- date financial information due to rounding.(2) We compare the percent change in the results from one period to another period using constant currency disclosure. We present constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars at the exchange rates in effect on May 31, 2012 and 2011 for the fiscal 2013 and fiscal 2012 constant currency growth rate calculations presented, respectively, rather than the actual exchange rates in effect during the respective periods. ORACLE CORPORATION FISCAL 2013 FINANCIAL RESULTS SUPPLEMENTAL GEOGRAPHIC REVENUES ANALYSIS (1) ($ in millions) Fiscal 2012 -------------------------------------- Q1 Q2 Q3 Q4 TOTAL ------ ------ ------ ------ ------AMERICAS New software licenses and cloud software subscriptions $ 727 $1,027 $1,228 $2,126 $5,107 ====== ====== ====== ====== ====== Hardware systems products $ 475 $ 496 $ 410 $ 498 $1,880 ====== ====== ====== ====== ======AS REPORTED GROWTH RATES New software licenses and cloud software subscriptions 10% 0% 11% 14% 10% Hardware systems products (12%) (17%) (19%) (17%) (16%)CONSTANT CURRENCY GROWTH RATES (2) New software licenses and cloud software subscriptions 9% 1% 11% 16% 11% Hardware systems products (13%) (17%) (18%) (16%) (16%)EUROPE / MIDDLE EAST / AFRICA New software licenses and cloud software subscriptions $ 440 $ 584 $ 693 $1,166 $2,884 ====== ====== ====== ====== ====== Hardware systems products $ 344 $ 272 $ 265 $ 260 $1,140 ====== ====== ====== ====== ======AS REPORTED GROWTH RATES New software licenses and cloud software subscriptions 25% 2% (1%) (5%) 1% Hardware systems products 2% (17%) (20%) (24%) (15%)CONSTANT CURRENCY GROWTH RATES (2) New software licenses and cloud software subscriptions 15% 3% 1% 2% 4% Hardware systems products (11%) (17%) (18%) (18%) (16%)ASIA PACIFIC New software licenses and cloud software subscriptions $ 331 $ 437 $ 453 $ 693 $1,915 ====== ====== ====== ====== ====== Hardware systems products $ 210 $ 185 $ 194 $ 219 $ 807 ====== ====== ====== ====== ======AS REPORTED GROWTH RATES New software licenses and cloud software subscriptions 20% 11% 13% 8% 12% Hardware systems products 6% 2% (3%) 1% 1%CONSTANT CURRENCY GROWTH RATES (2) New software licenses and cloud software subscriptions 9% 8% 11% 13% 11% Hardware systems products (5%) (1%) (6%) 1% (3%)TOTAL COMPANY New software licenses and cloud software subscriptions $1,498 $2,048 $2,374 $3,985 $9,906 ====== ====== ====== ====== ====== Hardware systems products $1,029 $ 953 $ 869 $ 977 $3,827 ====== ====== ====== ====== ======AS REPORTED GROWTH RATES New software licenses and cloud software subscriptions 17% 2% 7% 7% 7% Hardware systems products (5%) (14%) (16%) (16%) (13%)CONSTANT CURRENCY GROWTH RATES (2) New software licenses and cloud software subscriptions 11% 3% 8% 11% 8% Hardware systems products (11%) (14%) (16%) (13%) (14%) Fiscal 2013 --------------------------------------- Q1 Q2 Q3 Q4 TOTAL ------ ------ ------ ------ -------AMERICAS New software licenses and cloud software subscriptions $ 814 $1,253 $1,205 $2,194 $ 5,465 ====== ====== ====== ====== ======= Hardware systems products $ 380 $ 370 $ 307 $ 439 $ 1,495 ====== ====== ====== ====== =======AS REPORTED GROWTH RATES New software licenses and cloud software subscriptions 12% 22% (2%) 3% 7% Hardware systems products (20%) (25%) (25%) (12%) (20%)CONSTANT CURRENCY GROWTH RATES (2) New software licenses and cloud software subscriptions 14% 22% (1%) 4% 8% Hardware systems products (19%) (25%) (25%) (12%) (20%)EUROPE / MIDDLE EAST / AFRICA New software licenses and cloud software subscriptions $ 403 $ 641 $ 690 $1,224 $ 2,959 ====== ====== ====== ====== ======= Hardware systems products $ 214 $ 198 $ 201 $ 228 $ 842 ====== ====== ====== ====== =======AS REPORTED GROWTH RATES New software licenses and cloud software subscriptions (8%) 10% 0% 5% 3% Hardware systems products (38%) (27%) (24%) (12%) (26%)CONSTANT CURRENCY GROWTH RATES (2) New software licenses and cloud software subscriptions 1% 12% 1% 5% 5% Hardware systems products (30%) (25%) (24%) (11%) (23%)ASIA PACIFIC New software licenses and cloud software subscriptions $ 357 $ 495 $ 437 $ 608 $ 1,897 ====== ====== ====== ====== ======= Hardware systems products $ 185 $ 166 $ 163 $ 182 $ 696 ====== ====== ====== ====== =======AS REPORTED GROWTH RATES New software licenses and cloud software subscriptions 8% 13% (3%) (12%) (1%) Hardware systems products (12%) (10%) (16%) (17%) (14%)CONSTANT CURRENCY GROWTH RATES (2) New software licenses and cloud software subscriptions 12% 13% 1% (7%) 3% Hardware systems products (10%) (12%) (14%) (14%) (12%)TOTAL COMPANY New software licenses and cloud software subscriptions $1,574 $2,389 $2,332 $4,026 $10,321 ====== ====== ====== ====== ======= Hardware systems products $ 779 $ 734 $ 671 $ 849 $ 3,033 ====== ====== ====== ====== =======AS REPORTED GROWTH RATES New software licenses and cloud software subscriptions 5% 17% (2%) 1% 4% Hardware systems products (24%) (23%) (23%) (13%) (21%)CONSTANT CURRENCY GROWTH RATES (2) New software licenses and cloud software subscriptions 10% 18% 0% 2% 6% Hardware systems products (21%) (23%) (22%) (12%) (19%)(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, 2012 and 2011 for the fiscal 2013 and fiscal 2012 constant currency growth rate calculations presented, respectively, rather than the actual exchange rates in effect during the respective periods. APPENDIX A ORACLE CORPORATION Q4 FISCAL 2013 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:

•New software licenses and cloud software subscriptions, 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 cloud software subscriptions contracts, software license updates and product support contracts and hardware systems support contracts assumed in connection with our acquisitions. Because these contracts are generally one year in duration, our GAAP revenues generally for the one year period subsequent to our acquisition of a business do not reflect the full amount of revenues on these assumed cloud software subscriptions contracts and support contracts that would have otherwise been recorded by the acquired entity. The non-GAAP adjustment to our new software licenses and cloud software subscriptions revenues, 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 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 cloud software subscriptions and hardware systems support contracts; however, we cannot be certain that our customers will renew our cloud software subscriptions contracts, software license updates and product support contracts or our hardware systems support contracts.

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

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

•Acquisition related and other expenses; and restructuring expenses: We have excluded the effect of acquisition related and other expenses and the effect of restructuring expenses from our non-GAAP operating expenses and net income measures. We incurred significant expenses in connection with our acquisitions and also incurred certain other operating expenses or income, which we generally would not have otherwise incurred in the periods presented as a part of our continuing operations. Acquisition related and other expenses consist of personnel related costs for transitional employees, other acquired employee related costs, stock-based compensation expenses (in addition to the stock-based compensation expenses described above), integration related professional services, certain business combination adjustments including adjustments after the measurement period has ended and changes in fair value of contingent consideration payable, and certain other operating items, 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:
Ken Bond
Oracle Investor Relations
1.650.607.0349
Email Contact

Deborah Hellinger
Oracle Corporate Communications
1.212.508.7935
Email Contact



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