Exhibit 99.1
News Release |
Contacts: | Catherine Evans Investor Relations Oracle Corporation (650) 506-4073 | Bob Wynne Corporate Communications Oracle Corporation (650) 506-5834 |
ORACLE REPORTS Q2 GAAP EPS OF 15 CENTS, NON-GAAP EPS OF 19 CENTS
GAAP Applications New License Revenues were up 42% in North America and 24% World-Wide
REDWOOD SHORES, Calif., December 15, 2005 — Oracle Corporation (NASDAQ: ORCL) today announced fiscal 2006 Q2 GAAP revenues of $3.3 billion, up 19% compared with the same quarter last year, while total non-GAAP revenues increased 23% to $3.4 billion for the quarter. GAAP earnings per share were $0.15, down 2% from Q2 last year, while non-GAAP earnings per share were $0.19, up 16%. Quarterly GAAP net income was $798 million, down 2%, while non-GAAP net income was $972 million, up 16% compared with the same quarter last year. This included a year-over-year, negative currency impact of 3%.
Second quarter GAAP total software revenues were up 18% to $2.6 billion, while non-GAAP total software revenues were up 22% to $2.7 billion, compared to the same quarter last year. Quarterly GAAP database and middleware new license revenues were up 5% to $785 million, while GAAP applications new license revenues were up 24% to $266 million. GAAP services revenues were up 26% to $675 million.
“In spite of currency moving during the quarter nearly 5% in the wrong direction, we reported revenues of $3.4 billion and earnings per share of 19 cents,” said Oracle President and CFO, Safra Catz. “Our subscription base is now over 300,000 contracts with a total annual value of $7.3 billion.”
“The most difficult place to beat SAP is in their home country of Germany,” said Oracle President, Charles Phillips. “Oracle winning the applications business at SAP’s retail systems development partner, German retailer Karstadt, is dramatic proof that our vertical industry strategy is working in the industries that we’ve targeted.”
- more -
“Since our acquisition, customers running PeopleSoft products have registered substantially improved satisfaction levels,” said Oracle CEO, Larry Ellison. “As a result those customers are now renewing their support contracts at a higher rate than when PeopleSoft was a stand-alone company. Nobody predicted that. They’re happy, we’re happy.”
Oracle Corporation is the world’s largest enterprise software company. For more information about Oracle, including supplemental financial information, please visit Oracle on the web atwww.oracle.com/investor or call Investor Relations at (650) 506-4073.
“Safe Harbor” Statement: Statements in this press release relating to Oracle’s future plans 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 could adversely affect our revenue growth and profitability through reductions in IT budgets and expenditures. (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) We cannot assure market acceptance of new products or new versions of existing products. (4) We have an active acquisition program (including our previously announced proposed acquisition of Siebel Systems, Inc.), and our acquisitions may not be successful, may involve unanticipated costs or other integration issues, or may disrupt our existing operations. (5) Periodic changes to our pricing model and sales organization could temporarily disrupt operations and cause a decline or delay in sales. (6) Intense competitive forces demand rapid technological advances and frequent new product introductions, and could require us to reduce prices. 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 “Factors That May Affect Our Future Results or the Market Price of Our Stock.” 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 release is current as of December 15, 2005. Oracle undertakes no duty to update any statement in light of new information or future events.
ORACLE CORPORATION
Q2 FISCAL 2006 QUARTER TO DATE FINANCIAL RESULTS
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share data)
Three Months Ended November 30, | Three Months Ended November 30, | % Increase (Decrease) in US $ | % Increase (Decrease) in Constant Currency (1) | ||||||||||||||||
2005 | % of Revenues | 2004 | % of Revenues | ||||||||||||||||
REVENUES | |||||||||||||||||||
New software licenses | $ | 1,058 | 32% | $ | 971 | 35% | 9% | 12% | |||||||||||
Software license updates and product support | 1,559 | 48% | 1,252 | 46% | 25% | 27% | |||||||||||||
Software Revenues | 2,617 | 80% | 2,223 | 81% | 18% | 20% | |||||||||||||
Services | 675 | 20% | 533 | 19% | 26% | 29% | |||||||||||||
Total Revenues | 3,292 | 100% | 2,756 | 100% | 19% | 22% | |||||||||||||
OPERATING EXPENSES (2) | |||||||||||||||||||
Sales and marketing | 706 | 22% | 555 | 20% | 27% | 29% | |||||||||||||
Software license updates and product support | 175 | 5% | 141 | 5% | 24% | 26% | |||||||||||||
Cost of services | 582 | 18% | 449 | 16% | 30% | 32% | |||||||||||||
Research and development | 468 | 14% | 320 | 12% | 46% | 47% | |||||||||||||
General and administrative | 109 | 3% | 130 | 5% | (16% | ) | (15% | ) | |||||||||||
Amortization of intangible assets | 126 | 4% | 7 | 0% | * | * | |||||||||||||
Acquisition related | 10 | 0% | 23 | 1% | * | * | |||||||||||||
Total Operating Expenses | 2,176 | 66% | 1,625 | 59% | 34% | 36% | |||||||||||||
OPERATING INCOME | 1,116 | 34% | 1,131 | 41% | (1% | ) | 2% | ||||||||||||
Interest expense | (16 | ) | 0% | (6 | ) | 0% | * | * | |||||||||||
Non-operating income, net | 22 | 0% | 29 | 1% | (25% | ) | (22% | ) | |||||||||||
INCOME BEFORE PROVISION FOR INCOME TAXES | 1,122 | 34% | 1,154 | 42% | (3% | ) | 1% | ||||||||||||
Provision for income taxes | 324 | 10% | 339 | 12% | (4% | ) | (4% | ) | |||||||||||
NET INCOME | $ | 798 | 24% | $ | 815 | 30% | (2% | ) | 3% | ||||||||||
EARNINGS PER SHARE: | |||||||||||||||||||
Basic | $ | 0.15 | $ | 0.16 | (3% | ) | |||||||||||||
Diluted | $ | 0.15 | $ | 0.16 | (2% | ) | |||||||||||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | |||||||||||||||||||
Basic | 5,152 | 5,123 | 1% | ||||||||||||||||
Diluted | 5,238 | 5,218 | 0% | ||||||||||||||||
* not meaningful | |||||||||||||||||||
(1) | We compare the percent change in the results from one period to another period using constant currency disclosure. We present constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars at the exchange rate in effect on May 31, 2005, which was the last day of our prior fiscal year, rather than the actual exchange rates in effect during the respective periods. The United States dollar strengthened relative to major international currencies in the three months ended November 30, 2005 compared with the corresponding prior year period, reducing revenue growth by 3 percentage points, operating expense growth by 2 percentage points and operating income growth by 3 percentage points. |
(2) | Certain prior period balances have been reclassified to conform to the current period presentation. |
ORACLE CORPORATION
Q2 FISCAL 2006 QUARTER TO DATE FINANCIAL RESULTS
NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (1)
(in millions, except per share data)
Three Months Ended November 30, | Three Months Ended November 30, | Non-GAAP | ||||||||||||||||||||||||||||
2005 Reported | Adj. | 2005 Non- GAAP | 2004 Reported | Adj. | 2004 Non- GAAP | % Increase (Decrease) in US $ | % Increase (Decrease) in Constant Currency | |||||||||||||||||||||||
REVENUES | ||||||||||||||||||||||||||||||
New software licenses | $ | 1,058 | $ | — | $ | 1,058 | $ | 971 | $ | — | $ | 971 | 9% | 12% | ||||||||||||||||
Software license updates and product support (2) | 1,559 | 102 | 1,661 | 1,252 | — | 1,252 | 33% | 35% | ||||||||||||||||||||||
Software Revenues | 2,617 | 102 | 2,719 | 2,223 | — | 2,223 | 22% | 25% | ||||||||||||||||||||||
Services | 675 | — | 675 | 533 | — | 533 | 26% | 29% | ||||||||||||||||||||||
Total Revenues | 3,292 | 102 | 3,394 | 2,756 | — | 2,756 | 23% | 26% | ||||||||||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||||||||
Sales and marketing (3) | 706 | (1 | ) | 705 | 555 | — | 555 | 27% | 29% | |||||||||||||||||||||
Software license updates and product support (3) | 175 | — | 175 | 141 | — | 141 | 24% | 25% | ||||||||||||||||||||||
Cost of services (3) | 582 | (2 | ) | 580 | 449 | — | 449 | 29% | 32% | |||||||||||||||||||||
Research and development (3) | 468 | (4 | ) | 464 | 320 | — | 320 | 45% | 46% | |||||||||||||||||||||
General and administrative | 109 | — | 109 | 130 | — | 130 | (16% | ) | (15% | ) | ||||||||||||||||||||
Amortization of intangible assets (4) | 126 | (126 | ) | — | 7 | (7 | ) | — | * | * | ||||||||||||||||||||
Acquisition related (5) | 10 | (10 | ) | — | 23 | (23 | ) | — | * | * | ||||||||||||||||||||
Total Operating Expenses | 2,176 | (143 | ) | 2,033 | 1,625 | (30 | ) | 1,595 | 28% | 29% | ||||||||||||||||||||
OPERATING INCOME | 1,116 | 245 | 1,361 | 1,131 | 30 | 1,161 | 17% | 21% | ||||||||||||||||||||||
Interest expense | (16 | ) | — | (16 | ) | (6 | ) | — | (6 | ) | * | * | ||||||||||||||||||
Non-operating income, net | 22 | — | 22 | 29 | — | 29 | (25% | ) | (22% | ) | ||||||||||||||||||||
INCOME BEFORE PROVISION FOR INCOME TAXES | 1,122 | 245 | 1,367 | 1,154 | 30 | 1,184 | 15% | 19% | ||||||||||||||||||||||
Income tax effect on above adjustments (6) | 324 | 71 | 395 | 339 | 8 | 347 | 13% | 14% | ||||||||||||||||||||||
NET INCOME | $ | 798 | $ | 174 | $ | 972 | $ | 815 | $ | 22 | $ | 837 | 16% | 21% | ||||||||||||||||
EARNINGS PER SHARE: | ||||||||||||||||||||||||||||||
Basic | $ | 0.15 | $ | 0.19 | $ | 0.16 | $ | 0.16 | 16% | |||||||||||||||||||||
Diluted | $ | 0.15 | $ | 0.19 | $ | 0.16 | $ | 0.16 | 16% | |||||||||||||||||||||
* not meaningful | ||||||||||||||||||||||||||||||
(1) | To supplement our financial results presented on a GAAP basis, we use non-GAAP measures of net income and diluted earnings per share, which exclude certain business combination accounting entries and expenses related to acquisitions that we believe are helpful in understanding our past financial performance and prospects for the future. Management uses the non-GAAP financial results as one factor in its planning and forecasting of future periods. The non-GAAP financial results are presented here with the intent of providing additional information about our operating results and trends. We believe the non-GAAP measures are useful in that they enable investors to segregate business combination accounting and acquisition-related expenses from our GAAP results, consider the impact of business combination accounting adjustments and compare our results to our performance in periods prior to our acquisitions. The presentation of non-GAAP financial results is not meant to be considered in isolation or as a substitute for net income or diluted earnings per share prepared in accordance with GAAP. Investors should be aware that non-GAAP measures have inherent limitations and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. |
(2) | We estimated the fair value of support obligations assumed in connection with business acquisitions made during fiscal 2005 and the first half of fiscal 2006. Due to our application of business combination accounting rules, software license updates and product support revenues related to support contracts assumed in business acquisitions in the amount of $102 million, which would have been otherwise recorded by the acquired entities, were not recognized as revenue by Oracle during the three months ended November 30, 2005. As customers renew these support contracts over the next year, we will recognize revenue for the full contract value over the support period. |
(3) | Non-GAAP adjustment represents stock-based compensation related to unvested stock options assumed in connection with acquisitions. |
(4) | Primarily represents the amortization of intangible assets acquired in connection with our acquisition of PeopleSoft. |
(5) | Acquisition related charges primarily consist of in-process research and development expenses, integration-related professional services, stock-compensation expenses and personnel related costs for transitional employees, as well as costs associated with our tender offer for PeopleSoft prior to the agreement date. Stock-based compensation included in acquisition related charges resulted from unvested options assumed in the PeopleSoft acquisition whose vesting was fully accelerated upon termination of the employees pursuant to the terms of these options. |
(6) | The income tax provision was calculated reflecting a tax rate of 28.9% and 29.4% in the second quarter of fiscal 2006 and 2005, respectively. |
ORACLE CORPORATION
Q2 FISCAL 2006 YEAR TO DATE FINANCIAL RESULTS
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share data)
Six Months Ended November 30, | Six Months Ended November 30, | % Increase (Decrease) in US $ | % Increase (Decrease) in Constant Currency (1) | ||||||||||||||||
2005 | % of Revenues | 2004 | % of Revenues | ||||||||||||||||
REVENUES | |||||||||||||||||||
New software licenses | $ | 1,687 | 28% | $ | 1,534 | 31% | 10% | 11% | |||||||||||
Software license updates and product support | 3,061 | 50% | 2,427 | 49% | 26% | 26% | |||||||||||||
Software Revenues | 4,748 | 78% | 3,961 | 80% | 20% | 21% | |||||||||||||
Services | 1,312 | 22% | 1,010 | 20% | 30% | 31% | |||||||||||||
Total Revenues | 6,060 | 100% | 4,971 | 100% | 22% | 23% | |||||||||||||
OPERATING EXPENSES (2) | |||||||||||||||||||
Sales and marketing | 1,321 | 22% | 1,035 | 21% | 28% | 28% | |||||||||||||
Software license updates and product support | 335 | 6% | 277 | 6% | 21% | 21% | |||||||||||||
Cost of services | 1,145 | 19% | 868 | 17% | 32% | 32% | |||||||||||||
Research and development | 868 | 14% | 623 | 13% | 39% | 39% | |||||||||||||
General and administrative | 265 | 4% | 255 | 5% | 4% | 4% | |||||||||||||
Amortization of intangible assets | 249 | 4% | 16 | 0% | * | * | |||||||||||||
Acquisition related | 38 | 1% | 52 | 1% | * | * | |||||||||||||
Restructuring | 11 | 0% | — | 0% | * | * | |||||||||||||
Total Operating Expenses | 4,232 | 70% | 3,126 | 63% | 35% | 36% | |||||||||||||
OPERATING INCOME | 1,828 | 30% | 1,845 | 37% | (1% | ) | 1% | ||||||||||||
Interest expense | (37 | ) | 0% | (11 | ) | 0% | * | * | |||||||||||
Non-operating income, net | 63 | 1% | 58 | 1% | 9% | 11% | |||||||||||||
INCOME BEFORE PROVISION FOR INCOME TAXES | 1,854 | 31% | 1,892 | 38% | (2% | ) | 0% | ||||||||||||
Provision for income taxes | 538 | 9% | 568 | 11% | (5% | ) | (4% | ) | |||||||||||
NET INCOME | $ | 1,316 | 22% | $ | 1,324 | 27% | (1% | ) | 1% | ||||||||||
EARNINGS PER SHARE: | |||||||||||||||||||
Basic | $ | 0.26 | $ | 0.26 | (1% | ) | |||||||||||||
Diluted | $ | 0.25 | $ | 0.25 | (1% | ) | |||||||||||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | |||||||||||||||||||
Basic | 5,150 | 5,139 | 0% | ||||||||||||||||
Diluted | 5,241 | 5,229 | 0% | ||||||||||||||||
* not meaningful | |||||||||||||||||||
(1) | We compare the percent change in the results from one period to another period using constant currency disclosure. We present constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars at the exchange rate in effect on May 31, 2005, which was the last day of our prior fiscal year, rather than the actual exchange rates in effect during the respective periods. The United States dollar strengthened relative to major international currencies in the six months ended November 30, 2005 compared with the corresponding prior year period, reducing revenue growth by 1 percentage point, operating expense growth by 1 percentage point and operating income growth by 2 percentage points. |
(2) | Certain prior period balances have been reclassified to conform to the current period presentation. |
ORACLE CORPORATION
Q2 FISCAL 2006 YEAR TO DATE FINANCIAL RESULTS
NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (1)
(in millions, except per share data)
Six Months Ended November 30, | Six Months Ended November 30, | Non-GAAP | ||||||||||||||||||||||||||
2005 Reported | Adj. | 2005 Non- GAAP | 2004 Reported | Adj. | 2004 Non- GAAP | % Increase in US $ | % Increase in Constant Currency | |||||||||||||||||||||
REVENUES | ||||||||||||||||||||||||||||
New software licenses | $ | 1,687 | $ | — | $ | 1,687 | $ | 1,534 | $ | — | $ | 1,534 | 10% | 11% | ||||||||||||||
Software license updates and product support (2) | 3,061 | 240 | 3,301 | 2,427 | — | 2,427 | 36% | 36% | ||||||||||||||||||||
Software Revenues | 4,748 | 240 | 4,988 | 3,961 | — | 3,961 | 26% | 27% | ||||||||||||||||||||
Services | 1,312 | — | 1,312 | 1,010 | — | 1,010 | 30% | 31% | ||||||||||||||||||||
Total Revenues | 6,060 | 240 | 6,300 | 4,971 | — | 4,971 | 27% | 27% | ||||||||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||||||
Sales and marketing (3) | 1,321 | (3 | ) | 1,318 | 1,035 | — | 1,035 | 27% | 28% | |||||||||||||||||||
Software license updates and product support (3) | 335 | (1 | ) | 334 | 277 | — | 277 | 21% | 21% | |||||||||||||||||||
Cost of services (3) | 1,145 | (4 | ) | 1,141 | 868 | — | 868 | 31% | 32% | |||||||||||||||||||
Research and development (3) | 868 | (8 | ) | 860 | 623 | — | 623 | 38% | 38% | |||||||||||||||||||
General and administrative | 265 | — | 265 | 255 | — | 255 | 4% | 4% | ||||||||||||||||||||
Amortization of intangible assets (4) | 249 | (249 | ) | — | 16 | (16 | ) | — | * | * | ||||||||||||||||||
Acquisition related (5) | 38 | (38 | ) | — | 52 | (52 | ) | — | * | * | ||||||||||||||||||
Restructuring (6) | 11 | (11 | ) | — | — | — | — | * | * | |||||||||||||||||||
Total Operating Expenses | 4,232 | (314 | ) | 3,918 | 3,126 | (68 | ) | 3,058 | 28% | 28% | ||||||||||||||||||
OPERATING INCOME | 1,828 | 554 | 2,382 | 1,845 | 68 | 1,913 | 25% | 26% | ||||||||||||||||||||
Interest expense | (37 | ) | — | (37 | ) | (11 | ) | — | (11 | ) | * | * | ||||||||||||||||
Non-operating income, net | 63 | — | 63 | 58 | — | 58 | 9% | 11% | ||||||||||||||||||||
INCOME BEFORE PROVISION FOR INCOME TAXES | 1,854 | 554 | 2,408 | 1,892 | 68 | 1,960 | 23% | 24% | ||||||||||||||||||||
Provision for income taxes (7) | 538 | 160 | 698 | 568 | 20 | 588 | 19% | 20% | ||||||||||||||||||||
NET INCOME | $ | 1,316 | $ | 394 | $ | 1,710 | $ | 1,324 | $ | 48 | $ | 1,372 | 25% | 26% | ||||||||||||||
EARNINGS PER SHARE: | ||||||||||||||||||||||||||||
Basic | $ | 0.26 | $ | 0.33 | $ | 0.26 | $ | 0.27 | 25% | |||||||||||||||||||
Diluted | $ | 0.25 | $ | 0.33 | $ | 0.25 | $ | 0.26 | 25% | |||||||||||||||||||
* not meaningful | ||||||||||||||||||||||||||||
(1) | To supplement our financial results presented on a GAAP basis, we use non-GAAP measures of net income and diluted earnings per share, which exclude certain business combination accounting entries and expenses related to acquisitions that we believe are helpful in understanding our past financial performance and prospects for the future. Management uses the non-GAAP financial results as one factor in its planning and forecasting of future periods. The non-GAAP financial results are presented here with the intent of providing additional information about our operating results and trends. We believe the non-GAAP measures are useful in that they enable investors to segregate business combination accounting and acquisition-related expenses from our GAAP results, consider the impact of business combination accounting adjustments and compare our results to our performance in periods prior to our acquisitions. The presentation of non-GAAP financial results is not meant to be considered in isolation or as a substitute for net income or diluted earnings per share prepared in accordance with GAAP. Investors should be aware that non-GAAP measures have inherent limitations and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. |
(2) | We estimated the fair value of support obligations assumed in connection with business acquisitions made during fiscal 2005 and the first half of fiscal 2006. Due to our application of business combination accounting rules, software license updates and product support revenues related to support contracts assumed in business acquisitions in the amount of $240 million, which would have been otherwise recorded by the acquired entities, were not recognized as revenue by Oracle during the six months ended November 30, 2005. As customers renew these support contracts over the next year, we will recognize revenue for the full contract value over the support period. |
(3) | Non-GAAP adjustment represents stock-based compensation related to unvested stock options assumed in connection with acquisitions. |
(4) | Primarily represents the amortization of intangible assets acquired in connection with our acquisition of PeopleSoft. |
(5) | Acquisition related charges primarily consist of in-process research and development expenses, integration-related professional services, stock-compensation expenses and personnel related costs for transitional employees, as well as costs associated with our tender offer for PeopleSoft prior to the agreement date. Stock-based compensation included in acquisition related charges resulted from unvested options assumed in the PeopleSoft acquisition whose vesting was fully accelerated upon termination of the employees pursuant to the terms of these options. |
(6) | Restructuring costs relate to Oracle employee severance and Oracle duplicate facility closures. |
(7) | The income tax provision was calculated reflecting a tax rate of 29.0% and 30.0% in the first half of fiscal 2006 and 2005, respectively. |
ORACLE CORPORATION
Q2 FISCAL 2006 FINANCIAL RESULTS
CONDENSED CONSOLIDATED BALANCE SHEETS (1)
($ in millions)
November 30, 2005 | May 31, 2005 | ||||||
ASSETS | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 2,837 | $ | 3,894 | |||
Marketable securities | 566 | 877 | |||||
Trade receivables, net | 1,976 | 2,570 | |||||
Deferred tax assets | 471 | 486 | |||||
Other current assets | 416 | 621 | |||||
Total Current Assets | 6,266 | 8,448 | |||||
Non-Current Assets: | |||||||
Property, net | 1,366 | 1,442 | |||||
Intangible assets, net | 3,269 | 3,373 | |||||
Goodwill | 7,366 | 7,003 | |||||
Other assets | 1,079 | 421 | |||||
Total Non-Current Assets | 13,080 | 12,239 | |||||
TOTAL ASSETS | $ | 19,346 | $ | 20,687 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current Liabilities: | |||||||
Short-term borrowings and current portion of long-term debt | $ | 907 | $ | 2,693 | |||
Accounts payable | 240 | 230 | |||||
Income taxes payable | 667 | 904 | |||||
Accrued compensation and related benefits | 699 | 923 | |||||
Accrued restructuring | 73 | 156 | |||||
Deferred revenues | 2,183 | 2,289 | |||||
Other current liabilities | 794 | 868 | |||||
Total Current Liabilities | 5,563 | 8,063 | |||||
Non-Current Liabilities: | |||||||
Long-term debt | 156 | 159 | |||||
Deferred tax liabilities | 950 | 1,010 | |||||
Accrued restructuring | 91 | 120 | |||||
Deferred revenues | 89 | 126 | |||||
Other long-term liabilities | 382 | 372 | |||||
Total Non-Current Liabilities | 1,668 | 1,787 | |||||
Stockholders’ Equity | 12,115 | 10,837 | |||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 19,346 | $ | 20,687 | |||
(1) | Certain prior period balances have been reclassified to conform to the current period presentation. |
ORACLE CORPORATION
Q2 FISCAL 2006 YEAR TO DATE FINANCIAL RESULTS
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (1)
($ in millions)
Six Months Ended November 30, | ||||||||
2005 | 2004 | |||||||
Cash Flows From Operating Activities: | ||||||||
Net income | $ | 1,316 | $ | 1,324 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation | 110 | 89 | ||||||
Amortization of intangible assets | 249 | 16 | ||||||
Deferred income taxes | (65 | ) | (42 | ) | ||||
Minority interests in income | 17 | 19 | ||||||
Amortization of stock-based compensation | 20 | — | ||||||
In-process research and development | 12 | — | ||||||
Changes in operating assets and liabilities, net of effects from acquisitions: | ||||||||
Decrease in trade receivables | 558 | 527 | ||||||
Decrease in prepaid expenses and other assets | 158 | 152 | ||||||
Decrease in accounts payable and other liabilities | (308 | ) | (267 | ) | ||||
(Decrease) Increase in income taxes payable | (219 | ) | 38 | |||||
Decrease in deferred revenues | (92 | ) | (57 | ) | ||||
Net cash provided by operating activities | 1,756 | 1,799 | ||||||
Cash Flows From Investing Activities: | ||||||||
Purchases of marketable securities | (926 | ) | (5,097 | ) | ||||
Proceeds from maturities and sale of marketable securities | 1,203 | 6,011 | ||||||
Acquisitions, net of cash acquired | (498 | ) | — | |||||
Purchase of equity investment | (605 | ) | — | |||||
Capital expenditures | (86 | ) | (92 | ) | ||||
Proceeds from sales of property | 89 | — | ||||||
Increase in other assets | (3 | ) | (4 | ) | ||||
Net cash (used for) provided by investing activities | (826 | ) | 818 | |||||
Cash Flows From Financing Activities: | ||||||||
Payments for repurchase of common stock | (324 | ) | (1,095 | ) | ||||
Proceeds from issuance of common stock | 245 | 165 | ||||||
Proceeds from borrowings | 6,518 | — | ||||||
Payments of debt | (8,321 | ) | — | |||||
Distributions to minority interests | (23 | ) | (26 | ) | ||||
Net cash used for financing activities | (1,905 | ) | (956 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | (82 | ) | 106 | |||||
Net (decrease) increase in cash and cash equivalents | (1,057 | ) | 1,767 | |||||
Cash and cash equivalents at beginning of period | 3,894 | 4,138 | ||||||
Cash and cash equivalents at end of period | $ | 2,837 | $ | 5,905 | ||||
(1) | Certain prior period balances have been reclassified to conform to the current period presentation. |
ORACLE CORPORATION
Q2 FISCAL 2006 FINANCIAL RESULTS
FREE CASH FLOW - TRAILING 4-QUARTERS (1)
($ in millions)
Fiscal 2005 | Fiscal 2006 | ||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 (2) | Q3 | Q4 | ||||||||||||||||||||||
GAAP Operating Cash Flow | $ | 3,350 | $ | 3,386 | $ | 3,575 | $ | 3,552 | $ | 3,596 | $ | 3,509 | |||||||||||||||||
Capital Expenditures (3) | (147 | ) | (178 | ) | (195 | ) | (188 | ) | (206 | ) | (182 | ) | |||||||||||||||||
Free Cash Flow | $ | 3,203 | $ | 3,208 | $ | 3,380 | $ | 3,364 | $ | 3,390 | $ | 3,327 | |||||||||||||||||
% Growth | 16% | 12% | 27% | 12% | 6% | 4% | |||||||||||||||||||||||
GAAP Net Income | $ | 2,749 | $ | 2,948 | $ | 2,854 | $ | 2,886 | $ | 2,896 | $ | 2,878 | |||||||||||||||||
Free Cash Flow as a % of Net Income | 117% | 109% | 118% | 117% | 117% | 116% | |||||||||||||||||||||||
(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) | Free cash flow and free cash flow as a percent of GAAP net income for the first half of fiscal 2006 and first half of fiscal 2005: |
First Half of Fiscal 2005 | First Half of Fiscal 2006 | |||||||
GAAP Operating Cash Flow | $ | 1,799 | $ | 1,756 | ||||
Capital Expenditures | (92 | ) | (86 | ) | ||||
Free Cash Flow | $ | 1,707 | $ | 1,670 | ||||
% Growth | 13% | (2)% | ||||||
GAAP Net Income | $ | 1,324 | $ | 1,316 | ||||
Free Cash Flow as a % of Net Income | 129% | 127% |
(3) | Represents capital expenditures as reported in cash flows from investing activities of our cash flow statements presented in accordance with U.S. generally accepted accounting principles. |
ORACLE CORPORATION
Q2 FISCAL 2006 FINANCIAL RESULTS
SUPPLEMENTAL ANALYSIS OF GEOGRAPHIC REVENUES AND HEADCOUNT (1)
(in millions, except headcount data)
Fiscal 2005 | Fiscal 2006 | |||||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | TOTAL | Q1 | Q2 | Q3 | Q4 | TOTAL | |||||||||||||||||||||||
GEOGRAPHIC REVENUES | ||||||||||||||||||||||||||||||||
REVENUES | ||||||||||||||||||||||||||||||||
Americas | $ | 1,091 | $ | 1,292 | $ | 1,437 | $ | 1,977 | $ | 5,798 | $ | 1,476 | $ | 1,733 | $ | 3,209 | ||||||||||||||||
Europe, Middle East & Africa | 778 | 1,062 | 1,088 | 1,361 | 4,288 | 883 | 1,090 | 1,972 | ||||||||||||||||||||||||
Asia Pacific | 346 | 402 | 425 | 540 | 1,713 | 409 | 469 | 879 | ||||||||||||||||||||||||
Total Revenues | $ | 2,215 | $ | 2,756 | $ | 2,950 | $ | 3,878 | $ | 11,799 | $ | 2,768 | $ | 3,292 | $ | 6,060 | ||||||||||||||||
HEADCOUNT | ||||||||||||||||||||||||||||||||
GEOGRAPHIC AREA | ||||||||||||||||||||||||||||||||
Domestic | 16,458 | 16,347 | 21,774 | 21,544 | 21,198 | 21,133 | ||||||||||||||||||||||||||
International | 25,610 | 26,233 | 29,107 | 28,328 | 28,318 | 30,021 | ||||||||||||||||||||||||||
Total Company | 42,068 | 42,580 | 50,881 | 49,872 | 49,516 | 51,154 | ||||||||||||||||||||||||||
(1) | The sum of the quarterly financial information may vary from the year-to-date financial information due to rounding. |
ORACLE CORPORATION
Q2 FISCAL 2006 FINANCIAL RESULTS
ESTIMATED NON-GAAP TOTAL PRODUCT REVENUE ANALYSIS (1) (2) (3)
($ in millions)
Fiscal 2005 | Fiscal 2006 | |||||||||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Total | Q1 | Q2 | Q3 | Q4 | Total | |||||||||||||||||||||||||||
NON-GAAP APPLICATIONS REVENUES | ||||||||||||||||||||||||||||||||||||
New software licenses | $ | 69 | $ | 215 | $ | 152 | $ | 350 | $ | 785 | $ | 127 | $ | 266 | $ | 393 | ||||||||||||||||||||
Software license updates and product support | 238 | 254 | 494 | 622 | 1,608 | 605 | 604 | 1,209 | ||||||||||||||||||||||||||||
Software Revenues | 307 | 469 | 646 | 972 | 2,393 | 732 | 870 | 1,602 | ||||||||||||||||||||||||||||
Services | 190 | 216 | 348 | 435 | 1,189 | 379 | 412 | 791 | ||||||||||||||||||||||||||||
Total Application Related Revenues | $ | 497 | $ | 685 | $ | 994 | $ | 1,407 | $ | 3,582 | $ | 1,111 | $ | 1,282 | $ | 2,393 | ||||||||||||||||||||
AS REPORTED REVENUE GROWTH RATES | ||||||||||||||||||||||||||||||||||||
New software licenses | (36% | ) | 57% | 9% | 52% | 28% | 84% | 24% | 39% | |||||||||||||||||||||||||||
Software license updates and product support | 8% | 7% | 108% | 160% | 72% | 154% | 138% | 146% | ||||||||||||||||||||||||||||
Software Revenues | (6% | ) | 25% | 71% | 107% | 54% | 138% | 85% | 106% | |||||||||||||||||||||||||||
Services | (12% | ) | 2% | 71% | 87% | 38% | 99% | 91% | 95% | |||||||||||||||||||||||||||
Total Application Related Revenues | (9% | ) | 17% | 71% | 100% | 48% | 124% | 87% | 102% | |||||||||||||||||||||||||||
CONSTANT CURRENCY GROWTH RATES | ||||||||||||||||||||||||||||||||||||
New software licenses | (38% | ) | 51% | 7% | 49% | 25% | 82% | 27% | 40% | |||||||||||||||||||||||||||
Software license updates and product support | 4% | 3% | 104% | 155% | 67% | 150% | 141% | 146% | ||||||||||||||||||||||||||||
Software Revenues | (9% | ) | 21% | 68% | 103% | 50% | 135% | 88% | 107% | |||||||||||||||||||||||||||
Services | (15% | ) | (1% | ) | 67% | 83% | 33% | 96% | 95% | 96% | ||||||||||||||||||||||||||
Total Application Related Revenues | (11% | ) | 13% | 68% | 96% | 44% | 120% | 91% | 103% | |||||||||||||||||||||||||||
NON-GAAP DATABASE & MIDDLEWARE REVENUES | ||||||||||||||||||||||||||||||||||||
New software licenses | $ | 494 | $ | 756 | $ | 795 | $ | 1,259 | $ | 3,306 | $ | 502 | $ | 792 | $ | 1,294 | ||||||||||||||||||||
Software license updates and product support | 938 | 998 | 1,038 | 1,070 | 4,042 | 1,036 | 1,057 | 2,092 | ||||||||||||||||||||||||||||
Software Revenues | 1,432 | 1,754 | 1,833 | 2,329 | 7,349 | 1,538 | 1,849 | 3,386 | ||||||||||||||||||||||||||||
Services | 286 | 317 | 266 | 320 | 1,189 | 258 | 263 | 521 | ||||||||||||||||||||||||||||
Total Database and Middleware Related Revenues | $ | 1,718 | $ | 2,071 | $ | 2,099 | $ | 2,649 | $ | 8,539 | $ | 1,796 | $ | 2,112 | $ | 3,907 | ||||||||||||||||||||
AS REPORTED REVENUE GROWTH RATES | ||||||||||||||||||||||||||||||||||||
New software licenses | 18% | 5% | 12% | 16% | 13% | 2% | 5% | 4% | ||||||||||||||||||||||||||||
Software license updates and product support | 15% | 14% | 11% | 11% | 12% | 10% | 6% | 8% | ||||||||||||||||||||||||||||
Software Revenues | 16% | 10% | 11% | 14% | 13% | 7% | 5% | 6% | ||||||||||||||||||||||||||||
Services | (4% | ) | 0% | (6% | ) | (2% | ) | (3% | ) | (10% | ) | (17% | ) | (14% | ) | |||||||||||||||||||||
Total Database and Middleware Related Revenues | 12% | 8% | 9% | 12% | 10% | 5% | 2% | 3% | ||||||||||||||||||||||||||||
CONSTANT CURRENCY GROWTH RATES | ||||||||||||||||||||||||||||||||||||
New software licenses | 14% | 1% | 9% | 13% | 9% | 0% | 8% | 5% | ||||||||||||||||||||||||||||
Software license updates and product support | 11% | 10% | 7% | 7% | 9% | 9% | 8% | 8% | ||||||||||||||||||||||||||||
Software Revenues | 12% | 6% | 8% | 10% | 9% | 6% | 8% | 7% | ||||||||||||||||||||||||||||
Services | (7% | ) | (5% | ) | (8% | ) | (5% | ) | (6% | ) | (11% | ) | (16% | ) | (13% | ) | ||||||||||||||||||||
Total Database and Middleware Related Revenues | 8% | 4% | 5% | 8% | 7% | 4% | 4% | 4% | ||||||||||||||||||||||||||||
(1) | The sum of the quarterly financial information may vary from year-to-date financial information due to rounding. |
(2) | Oracle tracks new software license revenues by product. Software license updates and product support revenues, along with the services revenues shown here, represent Oracle's estimate of revenues that relate to database and middleware products, as well as application products. |
(3) | To supplement our financial results presented on a GAAP basis, we use non-GAAP measures of revenues, which excludes the business combination accounting entry related to the fair value of support obligations, as described below, that we believe is helpful in understanding our past financial performance and prospects for the future. Management uses non-GAAP revenues as one factor in its planning and forecasting of future periods. The non-GAAP revenues are presented here with the intent of providing additional information about our operating results and trends, as well as our marketplace performance. We believe the non-GAAP revenues are useful in that they enable investors to segregate business accounting entries from our GAAP results, consider the impact of business combination accounting adjustments and compare our results to our performance in periods prior to our acquisitions. The presentation of non-GAAP financial revenues is not meant to be considered in isolation or as a substitute for revenues prepared in accordance with GAAP. Investors should be aware that non-GAAP revenues have inherent limitations and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. |
We estimated the fair value of support obligations assumed in connection with business acquisitions made during fiscal 2005 and the first half of fiscal 2006. Due to our application of business combination accounting rules, software license updates and product support revenues related to support contracts assumed in business acquisitions in the amount of $102 million in the second quarter of fiscal 2006 and $240 million in the first half of fiscal 2006, which would have been otherwise recorded by the acquired entities, were not recognized as revenue by Oracle during the six months ended November 30, 2005. As customers renew these support contracts over the next year, we will recognize revenue for the full contract value over the support period. |
ORACLE CORPORATION
Q2 FISCAL 2006 FINANCIAL RESULTS
SUPPLEMENTAL NON-GAAP REVENUE ANALYSIS (1) (2)
($ in millions)
Fiscal 2005 | Fiscal 2006 | ||||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Total | Q1 | Q2 | Q3 | Q4 | Total | ||||||||||||||||||||||
TOTAL NON-GAAP REVENUES | |||||||||||||||||||||||||||||||
New software licenses | $ | 563 | $ | 971 | $ | 947 | $ | 1,609 | $ | 4,091 | $ | 629 | $ | 1,058 | $ | 1,687 | |||||||||||||||
Software license updates and product support | 1,176 | 1,252 | 1,532 | 1,692 | 5,650 | 1,641 | 1,661 | 3,301 | |||||||||||||||||||||||
Software Revenues | 1,739 | 2,223 | 2,479 | 3,301 | 9,741 | 2,270 | 2,719 | 4,988 | |||||||||||||||||||||||
Consulting | 355 | 395 | 470 | 589 | 1,810 | 481 | 506 | 987 | |||||||||||||||||||||||
On Demand | 71 | 72 | 76 | 80 | 299 | 84 | 87 | 171 | |||||||||||||||||||||||
Education | 50 | 66 | 68 | 86 | 269 | 72 | 82 | 154 | |||||||||||||||||||||||
Services Revenues | 476 | 533 | 614 | 755 | 2,378 | 637 | 675 | 1,312 | |||||||||||||||||||||||
Total Revenues | $ | 2,215 | $ | 2,756 | $ | 3,093 | $ | 4,056 | $ | 12,119 | $ | 2,907 | $ | 3,394 | $ | 6,300 | |||||||||||||||
AS REPORTED REVENUE GROWTH RATES | |||||||||||||||||||||||||||||||
New software licenses | 7% | 14% | 12% | 23% | 16% | 12% | 9% | 10% | |||||||||||||||||||||||
Software license updates and product support | 14% | 12% | 30% | 40% | 25% | 40% | 33% | 36% | |||||||||||||||||||||||
Software Revenues | 12% | 13% | 23% | 31% | 21% | 31% | 22% | 26% | |||||||||||||||||||||||
Consulting | (11% | ) | 0% | 26% | 40% | 14% | 35% | 28% | 32% | ||||||||||||||||||||||
On Demand | 18% | 11% | 23% | 13% | 16% | 18% | 21% | 20% | |||||||||||||||||||||||
Education | (11% | ) | (3% | ) | 36% | 32% | 13% | 44% | 24% | 33% | |||||||||||||||||||||
Services Revenues | (7% | ) | 1% | 26% | 35% | 14% | 34% | 26% | 30% | ||||||||||||||||||||||
Total Revenues | 7% | 10% | 23% | 32% | 19% | 31% | 23% | 27% | |||||||||||||||||||||||
CONSTANT CURRENCY GROWTH RATES | |||||||||||||||||||||||||||||||
New software licenses | 3% | 9% | 8% | 20% | 12% | 10% | 12% | 11% | |||||||||||||||||||||||
Software license updates and product support | 10% | 8% | 27% | 36% | 21% | 38% | 35% | 36% | |||||||||||||||||||||||
Software Revenues | 8% | 9% | 20% | 28% | 17% | 29% | 25% | 27% | |||||||||||||||||||||||
Consulting | (13% | ) | (4% | ) | 22% | 36% | 12% | 34% | 31% | 33% | |||||||||||||||||||||
On Demand | 14% | 7% | 20% | 10% | 14% | 17% | 22% | 19% | |||||||||||||||||||||||
Education | (14% | ) | (8% | ) | 33% | 28% | 10% | 42% | 28% | 33% | |||||||||||||||||||||
Services Revenues | (10% | ) | (3% | ) | 23% | 32% | 10% | 32% | 29% | 31% | |||||||||||||||||||||
Total Revenues | 3% | 6% | 19% | 29% | 15% | 29% | 26% | 27% | |||||||||||||||||||||||
(1) | The sum of the quarterly financial information may vary from year-to-date financial information due to rounding. |
(2) | To supplement our financial results presented on a GAAP basis, we use non-GAAP measures of revenues, which excludes the business combination accounting entry related to the fair value of support obligations, as described below, that we believe is helpful in understanding our past financial performance and prospects for the future. Management uses non-GAAP revenues as one factor in its planning and forecasting of future periods. The non-GAAP revenues are presented here with the intent of providing additional information about our operating results and trends, as well as our marketplace performance. We believe the non-GAAP revenues are useful in that they enable investors to segregate business accounting entries from our GAAP results, consider the impact of business combination accounting adjustments and compare our results to our performance in periods prior to our acquisitions. The presentation of non-GAAP financial revenues is not meant to be considered in isolation or as a substitute for revenues prepared in accordance with GAAP. Investors should be aware that non-GAAP revenues have inherent limitations and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. |
We estimated the fair value of support obligations assumed in connection with business acquisitions made during fiscal 2005 and the first half of fiscal 2006. Due to our application of business combination accounting rules, software license updates and product support revenues related to support contracts assumed in business acquisitions in the amount of $102 million in the second quarter of fiscal 2006 and $240 million in the first half of fiscal 2006, which would have been otherwise recorded by the acquired entities, were not recognized as revenue by Oracle during the six months ended November 30, 2005. As customers renew these support contracts over the next year, we will recognize revenue for the full contract value over the support period. |
ORACLE CORPORATION
Q2 FISCAL 2006 FINANCIAL RESULTS
SUPPLEMENTAL GEOGRAPHIC NEW SOFTWARE LICENSE REVENUES ANALYSIS (1) (2)
($ in millions)
Fiscal 2005 | Fiscal 2006 | ||||||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | TOTAL | Q1 | Q2 | Q3 | Q4 | TOTAL | ||||||||||||||||||||||||
AMERICAS | |||||||||||||||||||||||||||||||||
Database & Middleware | $ | 197 | $ | 285 | $ | 289 | $ | 542 | $ | 1,313 | $ | 194 | $ | 327 | $ | 522 | |||||||||||||||||
Applications | 30 | 116 | 91 | 229 | 466 | 75 | 163 | 238 | |||||||||||||||||||||||||
New Software License Revenues | $ | 227 | $ | 401 | $ | 380 | $ | 771 | $ | 1,779 | $ | 269 | $ | 490 | $ | 760 | |||||||||||||||||
AS REPORTED GROWTH RATES | |||||||||||||||||||||||||||||||||
Database & Middleware | 22% | (5% | ) | 14% | 29% | 16% | (2% | ) | 15% | 8% | |||||||||||||||||||||||
Applications | (27% | ) | 53% | 7% | 71% | 39% | 150% | 41% | 63% | ||||||||||||||||||||||||
New Software License Revenues | 12% | 7% | 12% | 39% | 21% | 19% | 22% | 21% | |||||||||||||||||||||||||
CONSTANT CURRENCY GROWTH RATES | |||||||||||||||||||||||||||||||||
Database & Middleware | 21% | (5% | ) | 12% | 27% | 15% | (4% | ) | 13% | 7% | |||||||||||||||||||||||
Applications | (27% | ) | 51% | 7% | 69% | 38% | 148% | 40% | 62% | ||||||||||||||||||||||||
New Software License Revenues | 11% | 7% | 11% | 37% | 20% | 17% | 21% | 19% | |||||||||||||||||||||||||
EUROPE / MIDDLE EAST / AFRICA | |||||||||||||||||||||||||||||||||
Database & Middleware | $ | 158 | $ | 304 | $ | 325 | $ | 483 | $ | 1,270 | $ | 164 | $ | 282 | $ | 447 | |||||||||||||||||
Applications | 28 | 80 | 44 | 76 | 227 | 38 | 75 | 113 | |||||||||||||||||||||||||
New Software License Revenues | $ | 186 | $ | 384 | $ | 369 | $ | 559 | $ | 1,497 | $ | 202 | $ | 357 | $ | 560 | |||||||||||||||||
AS REPORTED GROWTH RATES | |||||||||||||||||||||||||||||||||
Database & Middleware | 10% | 16% | 12% | 7% | 11% | 4% | (7% | ) | (3% | ) | |||||||||||||||||||||||
Applications | (49% | ) | 67% | 7% | 6% | 5% | 38% | (6% | ) | 5% | |||||||||||||||||||||||
New Software License Revenues | (6% | ) | 23% | 11% | 7% | 10% | 9% | (7% | ) | (2% | ) | ||||||||||||||||||||||
CONSTANT CURRENCY GROWTH RATES | |||||||||||||||||||||||||||||||||
Database & Middleware | 3% | 5% | 6% | 3% | 4% | 3% | 0% | 1% | |||||||||||||||||||||||||
Applications | (53% | ) | 54% | 2% | 3% | 0% | 36% | 1% | 10% | ||||||||||||||||||||||||
New Software License Revenues | (12% | ) | 13% | 6% | 3% | 4% | 8% | 0% | 3% | ||||||||||||||||||||||||
ASIA PACIFIC | |||||||||||||||||||||||||||||||||
Database & Middleware | $ | 131 | $ | 160 | $ | 168 | $ | 222 | $ | 682 | $ | 134 | $ | 176 | $ | 309 | |||||||||||||||||
Applications | 11 | 19 | 17 | 45 | 92 | 14 | 28 | 42 | |||||||||||||||||||||||||
New Software License Revenues | $ | 142 | $ | 179 | $ | 185 | $ | 267 | $ | 774 | $ | 148 | $ | 203 | $ | 351 | |||||||||||||||||
AS REPORTED GROWTH RATES | |||||||||||||||||||||||||||||||||
Database & Middleware | 27% | 7% | 8% | 10% | 12% | 2% | 9% | 6% | |||||||||||||||||||||||||
Applications | 0% | 46% | 21% | 80% | 46% | 28% | 48% | 41% | |||||||||||||||||||||||||
New Software License Revenues | 25% | 10% | 9% | 18% | 15% | 4% | 13% | 9% | |||||||||||||||||||||||||
CONSTANT CURRENCY GROWTH RATES | |||||||||||||||||||||||||||||||||
Database & Middleware | 21% | 3% | 3% | 7% | 8% | 0% | 14% | 8% | |||||||||||||||||||||||||
Applications | 0% | 38% | 23% | 72% | 42% | 23% | 50% | 40% | |||||||||||||||||||||||||
New Software License Revenues | 19% | 6% | 5% | 14% | 11% | 2% | 18% | 11% | |||||||||||||||||||||||||
TOTAL COMPANY | |||||||||||||||||||||||||||||||||
Database & Middleware | $ | 486 | $ | 749 | $ | 782 | $ | 1,247 | $ | 3,265 | $ | 492 | $ | 785 | $ | 1,278 | |||||||||||||||||
Applications | 69 | 215 | 152 | 350 | 785 | 127 | 266 | 393 | |||||||||||||||||||||||||
New Software License Revenues | $ | 555 | $ | 964 | $ | 934 | $ | 1,597 | $ | 4,050 | $ | 619 | $ | 1,051 | $ | 1,671 | |||||||||||||||||
AS REPORTED GROWTH RATES | |||||||||||||||||||||||||||||||||
Database & Middleware | 19% | 5% | 12% | 16% | 13% | 1% | 5% | 3% | |||||||||||||||||||||||||
Applications | (36% | ) | 57% | 9% | 52% | 28% | 84% | 24% | 39% | ||||||||||||||||||||||||
New Software License Revenues | 8% | 14% | 11% | 22% | 15% | 12% | 9% | 10% | |||||||||||||||||||||||||
CONSTANT CURRENCY GROWTH RATES | |||||||||||||||||||||||||||||||||
Database & Middleware | 14% | 1% | 8% | 13% | 9% | (0% | ) | 8% | 5% | ||||||||||||||||||||||||
Applications | (38% | ) | 51% | 7% | 49% | 25% | 82% | 27% | 40% | ||||||||||||||||||||||||
New Software License Revenues | 4% | 9% | 8% | 20% | 12% | 10% | 12% | 11% | |||||||||||||||||||||||||
(1) | The sum of the quarterly financial information may vary from year-to-date financial information due to rounding. |
(2) | New Software License Revenues presented exclude documentation and miscellaneous revenues. |