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Oracle Becomes the Second Largest Cloud SaaS Company in the World
Q4 SaaS and PaaS Subscriptions Up 25% to $322 Million, Q4 IaaS Subscription Revenue Up 13% to $128 Million
Actualizado el 19 de junio, 2014 - 22.01hs.
REDWOOD SHORES, CA -- (Marketwired) -- 06/19/14 -- Oracle Corporation (NYSE: ORCL) today announced that fiscal 2014 Q4 total revenues were up 3% to $11.3 billion. Software and Cloud revenues were up 4% to $8.9 billion. GAAP Cloud software-as-a-service (SaaS) and platform-as-a-service (PaaS) revenues were up 25% to $322 million, while non-GAAP SaaS and PaaS revenues were up 23% to $327 million. In addition, Cloud infrastructure-as-a-service (IaaS) revenues were up 13% to $128 million. New software licenses revenues were unchanged at $3.8 billion. Software license updates and product support revenues were up 7% to $4.7 billion. Overall hardware systems revenues were up 2% to $1.5 billion with hardware systems products up 2% to $870 million, and hardware systems support up 2% to $596 million.
In Q4, both GAAP and non-GAAP earnings per share were lowered by $0.02 due to a non-operating loss caused by exchange rate changes in Venezuela. Furthermore, last year's Q4 GAAP earnings per share increased $0.04 because of a $269 million acquisition price reduction. As a result of these two factors, Q4 GAAP earnings per share were unchanged at $0.80 compared with last year, while GAAP net income was down 4% to $3.6 billion, and GAAP operating income was down 2% to $4.9 billion. Q4 GAAP operating margin was 43% in the quarter. Non-GAAP earnings per share were up 6% to $0.92, but would have been $0.94 if not for the currency loss in Venezuela. Non-GAAP net income was up 2% to $4.2 billion while non-GAAP operating income was up 3% to $5.8 billion. The non-GAAP operating margin was 51%. GAAP operating cash flow on a trailing twelve-month basis was $14.9 billion.
For fiscal year 2014, total revenues were up 3% at $38.3 billion. GAAP Software and Cloud revenues were up 5%. GAAP Cloud SaaS and PaaS revenues were up 23% to $1.1 billion while Cloud IaaS revenues were $456 million. New software licenses revenues were unchanged at $9.4 billion while software license updates and product support revenues were up 6% to $18.2 billion. Total hardware system revenues were flat at $5.4 billion. GAAP operating income was up 1% to $14.8 billion, and GAAP operating margin was 39%. Non-GAAP operating income was up 3% to $18.1 billion, and non-GAAP operating margin was 47%. GAAP net income was unchanged at $11.0 billion, while non-GAAP net income was up 2% to $13.2 billion. GAAP earnings per share were $2.38, up 5% compared to last year while non-GAAP earnings per share were $2.87, up 7%.
"Our cloud subscription business is now approaching a run rate of $2 billion a year," said Oracle President and CFO Safra Catz. "As our business has transitioned, more software revenues are being recognized over the life of a subscription rather than upfront. We're making this transition to cloud subscriptions and ratable revenue recognition while continuously increasing our top-line revenue and our bottom-line profits year-after-year."
"We have transformed Sun's commodity hardware business into a profitable and growing Engineered Systems business," said Oracle President Mark Hurd. "Our overall hardware business grew 2% in constant currency this past year. We saw record levels of Engineered Systems shipments and expect to deliver our 10,000th unit in Q1."
"Oracle is now the second largest SaaS company in the world," said Oracle CEO Larry Ellison. "In SaaS, we're in front of everybody but salesforce.com. In IaaS we're larger and more profitable than Rackspace. We have by far the most complete portfolio of modern SaaS and PaaS products in the industry: CRM: Sales, Service & Marketing; HCM: HR, Payroll & Talent; ERP: Accounting, Procurement, Supply Chain & more. All these SaaS products run on the world's most powerful PaaS: the Oracle in-memory multitenant database and Java. We plan to increase our focus on the Cloud and become number one in both the SaaS and the PaaS businesses."
The Board of Directors declared a quarterly cash dividend of $0.12 per share of outstanding common stock. This dividend will be paid to stockholders of record as of the close of business on July 9, 2014, with a payment date of July 30, 2014.
Q4 Fiscal 2014 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) 312-6699, Passcode: 822011. 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 2014 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: 1625971.
About Oracle
Oracle engineers hardware and software to work together in the cloud and in your data center. For more information about Oracle (NYSE: 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 our cloud subscription run rate, the timing of the delivery of our 10,000th Engineered Systems unit, and our plans to increase our focus on the Cloud and become number one in SaaS and PaaS, 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 continued slow economic recovery in the U.S. and 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 cloud computing strategy, including our Oracle Cloud Software-as-a-Service, Platform-as-a-Service and Infrastructure-as-a-Service offerings, may not be successful. (4) 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. (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) If the security measures for our software, hardware, services or Oracle Cloud offerings are compromised or if such offerings contain significant coding, manufacturing or configuration errors, we may experience reputational harm, legal claims and financial exposure. (7) 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. 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 19, 2014. Oracle undertakes no duty to update any statement in light of new information or future events.
ORACLE CORPORATION
Q4 FISCAL 2014 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
2014 Revenues 2013 Revenues in US $ (1)
------- -------- ------- -------- ---------- ----------
REVENUES
New software
licenses $ 3,769 33% $ 3,769 35% 0% (1%)
Cloud software-
as-a-service and
platform-as-a-
service 322 3% 257 2% 25% 25%
Cloud
infrastructure-
as-a-service 128 1% 113 1% 13% 13%
Software license
updates and
product support 4,695 42% 4,402 40% 7% 6%
------- -------- ------- --------
Software and
Cloud Revenues 8,914 79% 8,541 78% 4% 4%
------- -------- ------- --------
Hardware systems
products 870 8% 849 8% 2% 3%
Hardware systems
support 596 5% 582 5% 2% 2%
------- -------- ------- --------
Hardware
Systems
Revenues 1,466 13% 1,431 13% 2% 3%
------- -------- ------- --------
Services
Revenues 940 8% 975 9% (4%) (3%)
------- -------- ------- --------
Total
Revenues 11,320 100% 10,947 100% 3% 3%
------- -------- ------- --------
OPERATING EXPENSES
Sales and
marketing 2,241 20% 2,125 19% 6% 5%
Cloud software-
as-a-service and
platform-as-a-
service 137 1% 101 1% 36% 35%
Cloud
infrastructure-
as-a-service 84 1% 76 1% 10% 11%
Software license
updates and
product support 303 3% 316 3% (4%) (4%)
Hardware systems
products 443 4% 413 4% 7% 8%
Hardware systems
support 205 2% 220 2% (7%) (6%)
Services 759 7% 785 7% (3%) (3%)
Research and
development 1,349 12% 1,264 12% 7% 7%
General and
administrative 265 2% 274 2% (3%) (3%)
Amortization of
intangible
assets 568 5% 596 5% (5%) (5%)
Acquisition
related and
other (2) 20 0% (257) (2%) 108% 108%
Restructuring 37 0% 34 0% 8% 4%
------- -------- ------- --------
Total
Operating
Expenses 6,411 57% 5,947 54% 8% 8%
------- -------- ------- --------
OPERATING INCOME 4,909 43% 5,000 46% (2%) (3%)
Interest expense (239) (2%) (210) (2%) 14% 14%
Non-operating
(expense)
income, net (81) 0% 35 0% 328% 324%
------- -------- ------- --------
INCOME BEFORE
PROVISION FOR
INCOME TAXES 4,589 41% 4,825 44% (5%) (6%)
------- -------- ------- --------
Provision for
income taxes 943 9% 1,018 9% (7%) (8%)
------- -------- ------- --------
NET INCOME $ 3,646 32% $ 3,807 35% (4%) (5%)
======= ======== ======= ========
EARNINGS PER SHARE:
Basic $ 0.81 $ 0.81
Diluted $ 0.80 $ 0.80
WEIGHTED AVERAGE
COMMON SHARES
OUTSTANDING:
Basic 4,475 4,684
Diluted 4,569 4,756
(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, 2013, 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, 2014
compared with the corresponding prior year period increased our
operating income by 1 percentage point.
(2) Acquisition related and other expenses for the quarter ended May 31,
2013 included a net benefit of $269 million due to an acquisition
related item.
ORACLE CORPORATION
Q4 FISCAL 2014 FINANCIAL RESULTS
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1)
($ in millions, except per share data)
Three Months Ended May 31,
--------------------------------------------------------
2014 2014 2013 2013
GAAP Adj. Non-GAAP GAAP Adj. Non-GAAP
-------- ------- -------- -------- ------- --------
TOTAL REVENUES (3)
(4) $ 11,320 $ 6 $ 11,326 $ 10,947 $ 14 $ 10,961
TOTAL SOFTWARE AND
CLOUD REVENUES
(3) $ 8,914 $ 5 $ 8,919 $ 8,541 $ 10 $ 8,551
New software
licenses 3,769 - 3,769 3,769 - 3,769
Cloud software-
as-a-service
and platform-
as-a-service
(3) 322 5 327 257 8 265
Cloud
infrastructure-
as-a-service 128 - 128 113 - 113
Software license
updates and
product support 4,695 - 4,695 4,402 2 4,404
TOTAL HARDWARE
SYSTEMS REVENUES
(4) $ 1,466 $ 1 $ 1,467 $ 1,431 $ 4 $ 1,435
Hardware systems
products 870 - 870 849 - 849
Hardware systems
support (4) 596 1 597 582 4 586
TOTAL OPERATING
EXPENSES $ 6,411 $ (841) $ 5,570 $ 5,947 $ (559) $ 5,388
Stock-based
compensation
(5) 216 (216) - 186 (186) -
Amortization of
intangible
assets (6) 568 (568) - 596 (596) -
Acquisition
related and
other 20 (20) - (257) 257 -
Restructuring 37 (37) - 34 (34) -
OPERATING INCOME $ 4,909 $ 847 $ 5,756 $ 5,000 $ 573 $ 5,573
OPERATING MARGIN % 43% 51% 46% 51%
INCOME TAX EFFECTS
(7) $ 943 $ 308 $ 1,251 $ 1,018 $ 266 $ 1,284
NET INCOME $ 3,646 $ 539 $ 4,185 $ 3,807 $ 307 $ 4,114
DILUTED EARNINGS
PER SHARE $ 0.80 $ 0.92 $ 0.80 $ 0.87
DILUTED WEIGHTED
AVERAGE COMMON
SHARES
OUTSTANDING 4,569 - 4,569 4,756 - 4,756
% Increase (Decrease)
% Increase (Decrease) in Constant Currency
in US $ (2)
--------------------- ---------------------
GAAP Non-GAAP GAAP Non-GAAP
---------- ---------- ---------- ----------
TOTAL REVENUES (3)
(4) 3% 3% 3% 3%
TOTAL SOFTWARE AND
CLOUD REVENUES
(3) 4% 4% 4% 4%
New software
licenses 0% 0% (1%) (1%)
Cloud software-
as-a-service
and platform-
as-a-service
(3) 25% 23% 25% 23%
Cloud
infrastructure-
as-a-service 13% 13% 13% 13%
Software license
updates and
product support 7% 7% 6% 6%
TOTAL HARDWARE
SYSTEMS REVENUES
(4) 2% 2% 3% 2%
Hardware systems
products 2% 2% 3% 3%
Hardware systems
support (4) 2% 2% 2% 2%
TOTAL OPERATING
EXPENSES 8% 3% 8% 3%
Stock-based
compensation
(5) 16% * 16% *
Amortization of
intangible
assets (6) (5%) * (5%) *
Acquisition
related and
other 108% * 108% *
Restructuring 8% * 4% *
OPERATING INCOME (2%) 3% (3%) 2%
OPERATING MARGIN % (231) bp. (2) bp. (255) bp. (24) bp.
INCOME TAX EFFECTS
(7) (7%) (3%) (8%) (4%)
NET INCOME (4%) 2% (5%) 1%
DILUTED EARNINGS
PER SHARE 0% 6% (1%) 5%
DILUTED WEIGHTED
AVERAGE COMMON
SHARES
OUTSTANDING (4%) (4%) (4%) (4%)
(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, 2013, 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, 2014, approximately $3 million in estimated revenues
related to assumed cloud software-as-a-service and platform-as-a-
service contracts will not be recognized for fiscal 2015 due to
business combination accounting rules.
(4) As of May 31, 2014, approximately $2 million in estimated revenues
related to hardware systems support contracts will not be recognized
for fiscal 2015 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, 2014 May 31, 2013
------------------------ ------------------------
Non- Non-
GAAP Adj. GAAP GAAP Adj. GAAP
------- ------- ------- ------- ------- -------
Sales and marketing $ 46 $ (46) $ - $ 33 $ (33) $ -
Cloud software-as-a-
service and platform-
as-a-service 3 (3) - 2 (2) -
Cloud infrastructure-
as-a-service 1 (1) - 2 (2) -
Software license
updates and product
support 6 (6) - 5 (5) -
Hardware systems
products 1 (1) - 1 (1) -
Hardware systems
support 1 (1) - 1 (1) -
Services 12 (12) - 6 (6) -
Research and
development 101 (101) - 93 (93) -
General and
administrative 45 (45) - 43 (43) -
------- ------- ------- ------- ------- -------
Subtotal 216 (216) - 186 (186) -
------- ------- ------- ------- ------- -------
Acquisition related
and other 7 (7) - 4 (4) -
------- ------- ------- ------- ------- -------
Total stock-based
compensation $ 223 $ (223) $ - $ 190 $ (190) $ -
======= ======= ======= ======= ======= =======
(6) Estimated future annual amortization expense related to intangible
assets as of May 31, 2014 was as follows:
Fiscal 2015 $ 1,934
Fiscal 2016 1,337
Fiscal 2017 741
Fiscal 2018 607
Fiscal 2019 508
Thereafter 980
-------
Total intangible
assets subject to
amortization 6,107
In-process research
and development 30
-------
Total intangible
assets, net $ 6,137
=======
(7) Income tax effects were calculated reflecting an effective GAAP tax
rate of 20.5% and 21.1% in the fourth quarter of fiscal 2014 and 2013,
respectively, and an effective non-GAAP tax rate of 23.0% and 23.8% in
the fourth quarter of fiscal 2014 and 2013, respectively. The
differences between our GAAP and non-GAAP tax rates in the fourth
quarter of fiscal 2014 and 2013 were primarily due to the net tax
effects of acquisition related items, including the tax effects of
amortization of intangible assets.
* Not meaningful
ORACLE CORPORATION
FISCAL 2014 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
2014 Revenues 2013 Revenues in US $ (1)
------- -------- ------- -------- ---------- ----------
REVENUES
New software
licenses $ 9,416 25% $ 9,411 25% 0% 1%
Cloud software-
as-a-service and
platform-as-a-
service 1,121 3% 910 3% 23% 24%
Cloud
infrastructure-
as-a-service 456 1% 457 1% 0% 1%
Software license
updates and
product support 18,206 47% 17,142 46% 6% 7%
------- -------- ------- --------
Software and
Cloud Revenues 29,199 76% 27,920 75% 5% 5%
------- -------- ------- --------
Hardware systems
products 2,976 8% 3,033 8% (2%) (1%)
Hardware systems
support 2,396 6% 2,313 6% 4% 5%
------- -------- ------- --------
Hardware
Systems
Revenues 5,372 14% 5,346 14% 0% 2%
------- -------- ------- --------
Services
Revenues 3,704 10% 3,914 11% (5%) (4%)
------- -------- ------- --------
Total
Revenues 38,275 100% 37,180 100% 3% 4%
------- -------- ------- --------
OPERATING EXPENSES
Sales and
marketing 7,567 20% 7,062 19% 7% 8%
Cloud software-
as-a-service and
platform-as-a-
service 455 1% 327 1% 39% 40%
Cloud
Infrastructure-
as-a-service 308 1% 304 1% 1% 3%
Software license
updates and
product support 1,162 3% 1,175 3% (1%) 1%
Hardware systems
products 1,521 4% 1,501 4% 1% 3%
Hardware systems
support 836 2% 890 2% (6%) (5%)
Services 2,954 8% 3,182 9% (7%) (6%)
Research and
development 5,151 13% 4,850 13% 6% 7%
General and
administrative 1,038 3% 1,072 3% (3%) (2%)
Amortization of
intangible
assets 2,300 6% 2,385 7% (4%) (4%)
Acquisition
related and
other (2) 41 0% (604) (2%) 107% 107%
Restructuring 183 0% 352 1% (48%) (49%)
------- -------- ------- --------
Total
Operating
Expenses 23,516 61% 22,496 61% 5% 6%
------- -------- ------- --------
OPERATING INCOME 14,759 39% 14,684 39% 1% 1%
Interest expense (914) (3%) (797) (2%) 15% 15%
Non-operating
(expense)
income, net (141) 0% 11 0% 1,343% 1,749%
------- -------- ------- --------
INCOME BEFORE
PROVISION FOR
INCOME TAXES 13,704 36% 13,898 37% (1%) 0%
------- -------- ------- --------
Provision for
income taxes 2,749 7% 2,973 8% (7%) (6%)
------- -------- ------- --------
NET INCOME $10,955 29% $10,925 29% 0% 1%
======= ======== ======= ========
EARNINGS PER SHARE:
Basic $ 2.42 $ 2.29
Diluted $ 2.38 $ 2.26
WEIGHTED AVERAGE
COMMON SHARES
OUTSTANDING:
Basic 4,528 4,769
Diluted 4,604 4,844
(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, 2013, 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, 2014 compared
with the corresponding prior year period decreased our revenues by 1
percentage point and operating expenses by 1 percentage point.
(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 $387 million due to an acquisition related item.
ORACLE CORPORATION
FISCAL 2014 YEAR TO DATE FINANCIAL RESULTS
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1)
($ in millions, except per share data)
Year Ended May 31,
--------------------------------------------------------
2014 2014 2013 2013
GAAP Adj. Non-GAAP GAAP Adj. Non-GAAP
-------- ------- -------- -------- ------- --------
TOTAL REVENUES (3)
(4) $ 38,275 $ 31 $ 38,306 $ 37,180 $ 73 $ 37,253
TOTAL SOFTWARE AND
CLOUD REVENUES
(3) $ 29,199 $ 20 $ 29,219 $ 27,920 $ 59 $ 27,979
New software
licenses 9,416 - 9,416 9,411 - 9,411
Cloud software-
as-a-service
and platform-
as-a-service
(3) 1,121 17 1,138 910 45 955
Cloud
infrastructure-
as-a-service 456 - 456 457 - 457
Software license
updates and
product support 18,206 3 18,209 17,142 14 17,156
TOTAL HARDWARE
SYSTEMS REVENUES
(4) $ 5,372 $ 11 $ 5,383 $ 5,346 $ 14 $ 5,360
Hardware systems
products 2,976 - 2,976 3,033 - 3,033
Hardware systems
support (4) 2,396 11 2,407 2,313 14 2,327
TOTAL OPERATING
EXPENSES $ 23,516 $(3,319) $ 20,197 $ 22,496 $(2,855) $ 19,641
Stock-based
compensation
(5) 795 (795) - 722 (722) -
Amortization of
intangible
assets (6) 2,300 (2,300) - 2,385 (2,385) -
Acquisition
related and
other 41 (41) - (604) 604 -
Restructuring 183 (183) - 352 (352) -
OPERATING INCOME $ 14,759 $ 3,350 $ 18,109 $ 14,684 $ 2,928 $ 17,612
OPERATING MARGIN % 39% 47% 39% 47%
INCOME TAX EFFECTS
(7) $ 2,749 $ 1,091 $ 3,840 $ 2,973 $ 896 $ 3,869
NET INCOME $ 10,955 $ 2,259 $ 13,214 $ 10,925 $ 2,032 $ 12,957
DILUTED EARNINGS
PER SHARE $ 2.38 $ 2.87 $ 2.26 $ 2.68
DILUTED WEIGHTED
AVERAGE COMMON
SHARES
OUTSTANDING 4,604 - 4,604 4,844 - 4,844
% Increase (Decrease)
% Increase (Decrease) in Constant Currency
in US $ (2)
--------------------- ---------------------
GAAP Non-GAAP GAAP Non-GAAP
---------- ---------- ---------- ----------
TOTAL REVENUES (3)
(4) 3% 3% 4% 4%
TOTAL SOFTWARE AND
CLOUD REVENUES
(3) 5% 4% 5% 5%
New software
licenses 0% 0% 1% 1%
Cloud software-
as-a-service
and platform-
as-a-service
(3) 23% 19% 24% 20%
Cloud
infrastructure-
as-a-service 0% 0% 1% 1%
Software license
updates and
product support 6% 6% 7% 7%
TOTAL HARDWARE
SYSTEMS REVENUES
(4) 0% 0% 2% 2%
Hardware systems
products (2%) (2%) (1%) (1%)
Hardware systems
support (4) 4% 3% 5% 5%
TOTAL OPERATING
EXPENSES 5% 3% 6% 4%
Stock-based
compensation
(5) 10% * 10% *
Amortization of
intangible
assets (6) (4%) * (4%) *
Acquisition
related and
other 107% * 107% *
Restructuring (48%) * (49%) *
OPERATING INCOME 1% 3% 1% 4%
OPERATING MARGIN % (93) bp. 0 bp. (94) bp. (8) bp.
INCOME TAX EFFECTS
(7) (7%) (1%) (6%) 0%
NET INCOME 0% 2% 1% 3%
DILUTED EARNINGS
PER SHARE 5% 7% 7% 8%
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, 2013, 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, 2014, approximately $3 million in estimated revenues
related to assumed cloud software-as-a-service and platform-as-a-
service contracts will not be recognized for fiscal 2015 due to
business combination accounting rules.
(4) As of May 31, 2014, approximately $2 million in estimated revenues
related to hardware systems support contracts will not be recognized
for fiscal 2015 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, 2014 May 31, 2013
------------------------ ------------------------
Non- Non-
GAAP Adj. GAAP GAAP Adj. GAAP
------- ------- ------- ------- ------- -------
Sales and marketing $ 165 $ (165) $ - $ 137 $ (137) $ -
Cloud software-as-a-
service and platform-
as-a-service 8 (8) - 10 (10) -
Cloud infrastructure-
as-a-service 4 (4) - 8 (8) -
Software license
updates and product
support 22 (22) - 20 (20) -
Hardware systems
products 5 (5) - 3 (3) -
Hardware systems
support 6 (6) - 5 (5) -
Services 29 (29) - 23 (23) -
Research and
development 385 (385) - 352 (352) -
General and
administrative 171 (171) - 164 (164) -
------- ------- ------- ------- ------- -------
Subtotal 795 (795) - 722 (722) -
------- ------- ------- ------- ------- -------
Acquisition related
and other 10 (10) - 33 (33) -
------- ------- ------- ------- ------- -------
Total stock-based
compensation $ 805 $ (805) $ - $ 755 $ (755) $ -
======= ======= ======= ======= ======= =======
(6) Estimated future annual amortization expense related to intangible
assets as of May 31, 2014 was as follows:
Fiscal 2015 $ 1,934
Fiscal 2016 1,337
Fiscal 2017 741
Fiscal 2018 607
Fiscal 2019 508
Thereafter 980
-------
Total intangible
assets subject to
amortization 6,107
In-process research
and development 30
-------
Total intangible
assets, net $ 6,137
=======
(7) Income tax effects were calculated reflecting an effective GAAP tax
rate of 20.1% and 21.4% in fiscal 2014 and 2013, respectively, and an
effective non-GAAP tax rate of 22.5% and 23.0% in fiscal 2014 and 2013,
respectively. The differences between our GAAP and non-GAAP tax rates
in fiscal 2014 and 2013 were primarily due to the net tax effects of
acquisition related items, including the tax effects of amortization of
intangible assets.
* Not meaningful
ORACLE CORPORATION
FISCAL 2014 FINANCIAL RESULTS
CONDENSED CONSOLIDATED BALANCE SHEETS
($ in millions)
May 31, May 31,
2014 2013
------------ ------------
ASSETS
Current Assets:
Cash and cash equivalents $ 17,769 $ 14,613
Marketable securities 21,050 17,603
Trade receivables, net 6,087 6,049
Inventories 189 240
Deferred tax assets 914 974
Prepaid expenses and other current assets 2,129 2,213
------------ ------------
Total Current Assets 48,138 41,692
Non-Current Assets:
Property, plant and equipment, net 3,061 3,053
Intangible assets, net 6,137 6,640
Goodwill 29,652 27,343
Deferred tax assets 837 766
Other assets 2,519 2,318
------------ ------------
Total Non-Current Assets 42,206 40,120
------------ ------------
TOTAL ASSETS $ 90,344 $ 81,812
============ ============
LIABILITIES AND EQUITY
Current Liabilities:
Notes payable, current and other current
borrowings $ 1,508 $ -
Accounts payable 471 419
Accrued compensation and related benefits 1,940 1,851
Income taxes payable 416 911
Deferred revenues 7,269 7,118
Other current liabilities 2,785 2,573
------------ ------------
Total Current Liabilities 14,389 12,872
Non-Current Liabilities:
Notes payable and other non-current borrowings 22,667 18,494
Income taxes payable 4,184 3,899
Other non-current liabilities 1,657 1,402
------------ ------------
Total Non-Current Liabilities 28,508 23,795
Equity 47,447 45,145
------------ ------------
TOTAL LIABILITIES AND EQUITY $ 90,344 $ 81,812
============ ============
ORACLE CORPORATION
FISCAL 2014 FINANCIAL RESULTS
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
($ in millions)
Year Ended May 31,
----------------------
2014 2013
---------- ----------
Cash Flows From Operating Activities:
Net income $ 10,955 $ 10,925
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation 608 546
Amortization of intangible assets 2,300 2,385
Deferred income taxes (248) (117)
Stock-based compensation 805 755
Tax benefits on the exercise of stock options
and vesting of restricted stock-based awards 480 410
Excess tax benefits on the exercise of stock
options and vesting of restricted stock-based
awards (250) (241)
Other, net 311 155
Changes in operating assets and liabilities, net
of effects from acquisitions:
Decrease in trade receivables, net 146 385
Decrease (increase) in inventories 57 (66)
Increase in prepaid expenses and other assets (143) (555)
Increase (decrease) in accounts payable and
other liabilities 48 (541)
(Decrease) increase in income taxes payable (320) 35
Increase in deferred revenues 172 148
---------- ----------
Net cash provided by operating activities 14,921 14,224
---------- ----------
Cash Flows From Investing Activities:
Purchases of marketable securities and other
investments (32,316) (32,160)
Proceeds from maturities and sales of marketable
securities and other investments 28,845 30,159
Acquisitions, net of cash acquired (3,488) (3,305)
Capital expenditures (580) (650)
---------- ----------
Net cash used for investing activities (7,539) (5,956)
---------- ----------
Cash Flows From Financing Activities:
Payments for repurchases of common stock (9,813) (11,021)
Proceeds from issuances of common stock 2,135 1,527
Payments of dividends to stockholders (2,178) (1,433)
Proceeds from borrowings, net of issuance costs 5,566 4,974
Repayments of borrowings - (2,950)
Excess tax benefits on the exercise of stock
options and vesting of restricted stock-based
awards 250 241
Distributions to noncontrolling interests (28) (31)
Other, net - 193
---------- ----------
Net cash used for financing activities (4,068) (8,500)
---------- ----------
Effect of exchange rate changes on cash and cash
equivalents (158) (110)
---------- ----------
Net increase (decrease) in cash and cash equivalents 3,156 (342)
---------- ----------
Cash and cash equivalents at beginning of period 14,613 14,955
---------- ----------
Cash and cash equivalents at end of period $ 17,769 $ 14,613
========== ==========
ORACLE CORPORATION
FISCAL 2014 FINANCIAL RESULTS
FREE CASH FLOW - TRAILING 4-QUARTERS (1)
($in millions)
Fiscal 2013
--------------------------------------
Q1 Q2 Q3 Q4
-------- -------- -------- --------
GAAP Operating Cash Flow $ 13,993 $ 13,533 $ 13,717 $ 14,224
Capital Expenditures (2) (627) (710) (684) (650)
-------- -------- -------- --------
Free Cash Flow $ 13,366 $ 12,823 $ 13,033 $ 13,574
======== ======== ======== ========
% Growth over prior year 8% 2% 1% 4%
-------- -------- -------- --------
GAAP Net Income $ 10,175 $ 10,564 $ 10,571 $ 10,925
Free Cash Flow as a % of Net Income 131% 121% 123% 124%
Fiscal 2014
---------------------------------------
Q1 Q2 Q3 Q4
-------- -------- -------- ---------
GAAP Operating Cash Flow $ 14,845 $ 15,196 $ 15,029 $ 14,921
Capital Expenditures (2) (664) (578) (609) (580)
-------- -------- -------- --------
Free Cash Flow $ 14,181 $ 14,618 $ 14,420 $ 14,341
======== ======== ======== ========
% Growth over prior year 6% 14% 11% 6%
-------- -------- -------- --------
GAAP Net Income $ 11,082 $ 11,054 $ 11,115 $ 10,955
Free Cash Flow as a % of Net Income 128% 132% 130% 131%
(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 2014 FINANCIAL RESULTS
SUPPLEMENTAL ANALYSIS OF GAAP REVENUES AND HEADCOUNT (1)
($in millions)
Fiscal 2013
----------------------------------------------------
Q1 Q2 Q3 Q4 TOTAL
-------- -------- -------- -------- --------
REVENUES
New software
licenses $ 1,371 $ 2,171 $ 2,101 $ 3,769 $ 9,411
Cloud software-as-
a-service and
platform-as-a-
service 203 218 231 257 910
Cloud
infrastructure-as-
a-service 119 114 110 113 457
Software license
updates and
product support 4,140 4,260 4,340 4,402 17,142
-------- -------- -------- -------- --------
Software and
Cloud Revenues 5,833 6,763 6,782 8,541 27,920
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 995 1,010 935 975 3,914
-------- -------- -------- -------- --------
Total Revenues $ 8,181 $ 9,094 $ 8,958 $ 10,947 $ 37,180
======== ======== ======== ======== ========
AS REPORTED REVENUE
GROWTH RATES
New software
licenses (3%) 11% (7%) (1%) 0%
Cloud software-as-
a-service and
platform-as-a-
service 138% 145% 111% 50% 100%
Cloud
infrastructure-as-
a-service 13% 5% (1%) (4%) 3%
Software license
updates and
product support 3% 7% 7% 6% 6%
Software and
Cloud Revenues 4% 10% 4% 3% 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 (7%) (6%) (9%) (10%) (8%)
Total Revenues (2%) 3% (1%) 0% 0%
CONSTANT CURRENCY
GROWTH RATES (2)
New software
licenses 2% 12% (6%) 0% 1%
Cloud software-as-
a-service and
platform-as-a-
service 139% 145% 111% 51% 100%
Cloud
infrastructure-as-
a-service 18% 6% 0% (2%) 5%
Software license
updates and
product support 8% 8% 8% 8% 8%
Software and
Cloud 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 (2%) (4%) (8%) (9%) (6%)
Total Revenues 3% 5% 0% 2% 2%
GEOGRAPHIC REVENUES
REVENUES
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
======== ======== ======== ======== ========
HEADCOUNT
GEOGRAPHIC 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
======== ======== ======== ======== ========
Fiscal 2014
----------------------------------------------------
Q1 Q2 Q3 Q4 TOTAL
-------- -------- -------- -------- --------
REVENUES
New software
licenses $ 1,399 $ 2,121 $ 2,128 $ 3,769 $ 9,416
Cloud software-as-
a-service and
platform-as-a-
service 254 259 287 322 1,121
Cloud
infrastructure-as-
a-service 109 97 121 128 456
Software license
updates and
product support 4,431 4,516 4,564 4,695 18,206
-------- -------- -------- -------- --------
Software and
Cloud Revenues 6,193 6,993 7,100 8,914 29,199
Hardware systems
products 669 714 725 870 2,976
Hardware systems
support 592 609 598 596 2,396
-------- -------- -------- -------- --------
Hardware Systems
Revenues 1,261 1,323 1,323 1,466 5,372
Services Revenues 918 959 884 940 3,704
-------- -------- -------- -------- --------
Total Revenues $ 8,372 $ 9,275 $ 9,307 $ 11,320 $ 38,275
======== ======== ======== ======== ========
AS REPORTED REVENUE
GROWTH RATES
New software
licenses 2% (2%) 1% 0% 0%
Cloud software-as-
a-service and
platform-as-a-
service 25% 19% 24% 25% 23%
Cloud
infrastructure-as-
a-service (9%) (15%) 10% 13% 0%
Software license
updates and
product support 7% 6% 5% 7% 6%
Software and
Cloud Revenues 6% 3% 5% 4% 5%
Hardware systems
products (14%) (3%) 8% 2% (2%)
Hardware systems
support 3% 4% 5% 2% 4%
Hardware Systems
Revenues (7%) 0% 7% 2% 0%
Services Revenues (8%) (5%) (5%) (4%) (5%)
Total Revenues 2% 2% 4% 3% 3%
CONSTANT CURRENCY
GROWTH RATES (2)
New software
licenses 5% 0% 3% (1%) 1%
Cloud software-as-
a-service and
platform-as-a-
service 26% 20% 25% 25% 24%
Cloud
infrastructure-as-
a-service (7%) (14%) 11% 13% 1%
Software license
updates and
product support 8% 7% 7% 6% 7%
Software and
Cloud Revenues 8% 5% 6% 4% 5%
Hardware systems
products (13%) (2%) 10% 3% (1%)
Hardware systems
support 5% 5% 7% 2% 5%
Hardware Systems
Revenues (6%) 1% 9% 3% 2%
Services Revenues (6%) (3%) (3%) (3%) (4%)
Total Revenues 4% 3% 6% 3% 4%
GEOGRAPHIC REVENUES
REVENUES
Americas $ 4,517 $ 4,995 $ 4,953 $ 5,857 $ 20,323
Europe, Middle East
& Africa 2,439 2,817 2,923 3,768 11,946
Asia Pacific 1,416 1,463 1,431 1,695 6,006
-------- -------- -------- -------- --------
Total Revenues $ 8,372 $ 9,275 $ 9,307 $ 11,320 $ 38,275
======== ======== ======== ======== ========
HEADCOUNT
GEOGRAPHIC AREA
Americas 53,465 53,073 53,799 53,827
Europe, Middle East
& Africa 23,349 23,178 23,350 23,339
Asia Pacific 45,513 45,617 45,561 45,108
-------- -------- -------- -------- --------
Total Company 122,327 121,868 122,710 122,274
======== ======== ======== ======== ========
(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, 2013 and 2012 for the fiscal 2014 and fiscal
2013 constant currency growth rate calculations presented, respectively,
rather than the actual exchange rates in effect during the respective
periods.
ORACLE CORPORATION
FISCAL 2014 FINANCIAL RESULTS
SUPPLEMENTAL GEOGRAPHIC REVENUES ANALYSIS (1)
($ in millions)
Fiscal 2013
----------------------------------------------------
Q1 Q2 Q3 Q4 TOTAL
-------- -------- -------- -------- --------
AMERICAS
Software and cloud
revenues $ 3,164 $ 3,641 $ 3,651 $ 4,686 $ 15,142
======== ======== ======== ======== ========
Hardware systems
revenues $ 652 $ 648 $ 577 $ 728 $ 2,604
======== ======== ======== ======== ========
AS REPORTED GROWTH
RATES
Software and cloud
revenues 8% 13% 4% 5% 7%
Hardware systems
revenues (16%) (17%) (17%) (7%) (14%)
CONSTANT CURRENCY
GROWTH RATES (2)
Software and cloud
revenues 10% 13% 5% 6% 8%
Hardware systems
revenues (15%) (17%) (17%) (7%) (14%)
EUROPE / MIDDLE EAST
/ AFRICA
Software and cloud
revenues $ 1,699 $ 1,993 $ 2,073 $ 2,627 $ 8,393
======== ======== ======== ======== ========
Hardware systems
revenues $ 402 $ 391 $ 390 $ 411 $ 1,594
======== ======== ======== ======== ========
AS REPORTED GROWTH
RATES
Software and cloud
revenues (4%) 5% 5% 5% 3%
Hardware systems
revenues (31%) (22%) (18%) (10%) (21%)
CONSTANT CURRENCY
GROWTH RATES (2)
Software and cloud
revenues 7% 8% 5% 6% 6%
Hardware systems
revenues (22%) (19%) (18%) (9%) (17%)
ASIA PACIFIC
Software and cloud
revenues $ 970 $ 1,129 $ 1,058 $ 1,228 $ 4,385
======== ======== ======== ======== ========
Hardware systems
revenues $ 299 $ 282 $ 274 $ 292 $ 1,148
======== ======== ======== ======== ========
AS REPORTED GROWTH
RATES
Software and cloud
revenues 6% 10% 1% (5%) 2%
Hardware systems
revenues (7%) (5%) (10%) (12%) (9%)
CONSTANT CURRENCY
GROWTH RATES (2)
Software and cloud
revenues 10% 10% 5% 0% 6%
Hardware systems
revenues (4%) (6%) (7%) (9%) (7%)
TOTAL COMPANY
Software and cloud
revenues $ 5,833 $ 6,763 $ 6,782 $ 8,541 $ 27,920
======== ======== ======== ======== ========
Hardware systems
revenues $ 1,353 $ 1,321 $ 1,241 $ 1,431 $ 5,346
======== ======== ======== ======== ========
AS REPORTED GROWTH
RATES
Software and cloud
revenues 4% 10% 4% 3% 5%
Hardware systems
revenues (19%) (16%) (16%) (9%) (15%)
CONSTANT CURRENCY
GROWTH RATES (2)
Software and cloud
revenues 9% 11% 5% 5% 7%
Hardware systems
revenues (15%) (16%) (15%) (8%) (13%)
Fiscal 2014
----------------------------------------------------
Q1 Q2 Q3 Q4 TOTAL
-------- -------- -------- -------- --------
AMERICAS
Software and cloud
revenues $ 3,434 $ 3,808 $ 3,847 $ 4,649 $ 15,737
======== ======== ======== ======== ========
Hardware systems
revenues $ 640 $ 694 $ 655 $ 747 $ 2,736
======== ======== ======== ======== ========
AS REPORTED GROWTH
RATES
Software and cloud
revenues 9% 5% 5% (1%) 4%
Hardware systems
revenues (2%) 7% 14% 3% 5%
CONSTANT CURRENCY
GROWTH RATES (2)
Software and cloud
revenues 9% 6% 7% 1% 5%
Hardware systems
revenues (1%) 8% 16% 5% 6%
EUROPE / MIDDLE EAST
/ AFRICA
Software and cloud
revenues $ 1,816 $ 2,155 $ 2,245 $ 3,032 $ 9,249
======== ======== ======== ======== ========
Hardware systems
revenues $ 358 $ 372 $ 403 $ 440 $ 1,572
======== ======== ======== ======== ========
AS REPORTED GROWTH
RATES
Software and cloud
revenues 7% 8% 8% 15% 10%
Hardware systems
revenues (11%) (5%) 3% 7% (1%)
CONSTANT CURRENCY
GROWTH RATES (2)
Software and cloud
revenues 4% 6% 6% 10% 7%
Hardware systems
revenues (13%) (6%) 2% 3% (3%)
ASIA PACIFIC
Software and cloud
revenues $ 943 $ 1,030 $ 1,008 $ 1,233 $ 4,213
======== ======== ======== ======== ========
Hardware systems
revenues $ 263 $ 257 $ 265 $ 279 $ 1,064
======== ======== ======== ======== ========
AS REPORTED GROWTH
RATES
Software and cloud
revenues (3%) (9%) (5%) 0% (4%)
Hardware systems
revenues (12%) (9%) (3%) (4%) (7%)
CONSTANT CURRENCY
GROWTH RATES (2)
Software and cloud
revenues 8% 0% 3% 3% 3%
Hardware systems
revenues (5%) (3%) 3% (3%) (2%)
TOTAL COMPANY
Software and cloud
revenues $ 6,193 $ 6,993 $ 7,100 $ 8,914 $ 29,199
======== ======== ======== ======== ========
Hardware systems
revenues $ 1,261 $ 1,323 $ 1,323 $ 1,466 $ 5,372
======== ======== ======== ======== ========
AS REPORTED GROWTH
RATES
Software and cloud
revenues 6% 3% 5% 4% 5%
Hardware systems
revenues (7%) 0% 7% 2% 0%
CONSTANT CURRENCY
GROWTH RATES (2)
Software and cloud
revenues 8% 5% 6% 4% 5%
Hardware systems
revenues (6%) 1% 9% 3% 2%
(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, 2013 and 2012 for the fiscal 2014 and fiscal
2013 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 2014 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:
- Cloud software-as-a-service and platform-as-a-service, 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-as-a-service and platform-as-a-service 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 and support contracts that would have otherwise been recorded by the acquired entity. The non-GAAP adjustment to our cloud software-as-a-service and platform-as-a-service 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-as-a-service and platform-as-a-service and hardware systems support contracts; however, we cannot be certain that our customers will renew our cloud software-as-a-service and platform-as-a-service 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 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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Dirigido tanto a los principiantes, como a los expertos en seguridad informática y sistemas de control industrial (ICS), este libro ayudará a los lectores a comprender mejor la protección de normas de control interno de las amenazas electrónicas. ... Leer más ►
Publicado el 3-Ene-2012 • 20.16hs
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Otros Teoría Libros
ebook: Data Mining for Intelligence, Fraud & Criminal Detection: Advanced Analytics & Information Sharing Technologies
Publicado el 25-Set-2009 • 01.26hs
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Industria y Fabricación Teoría Libros
Pellerin-Minor, fabricante de lavadoras para ropa reconocido mundialmente, implanta las soluciones de MATE - Intelligent Video en su planta de Louisiana
Publicado el 17-Dic-2008 • 08.32hs
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Biometría Ver más »
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Firma electrónica avanzada y reconocimiento mediante voz con biometricvox.com
Publicado el 11-Oct-2016 • 12.48hs
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Cinco razones para implementar la identificación biométrica
Publicado el 15-Mar-2016 • 11.59hs
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Control de Accesos Ver más »
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Introducción para IT a la Gestión de Identidades [Webinar de 1 hora]
Publicado el 2-Feb-2017 • 11.38hs
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Infinias explica sus soluciones integradas de Video Análisis y Control de Accesos. Webinar de 1 hora.
Publicado el 20-Jun-2014 • 17.17hs
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Sistemas de Alarmas Ver más »
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ADT explica sus soluciones antihurto para Retail y otras propuestas en control de accesos y videovigilancia
Publicado el 31-May-2011 • 05.13hs
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Visonic presenta su sistema de alarmas Amber especial para el cuidado de personas de la tercera edad
Publicado el 25-Set-2008 • 17.54hs
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VideoVigilancia Ver más »
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Scati instala más de 200 cámaras minidomo IP y sistema de grabación en Resort de Cancún
Publicado el 1-Set-2016 • 16.11hs
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Tendencias 2016 en Videovigilancia y Videointeligencia. Por Axis.
Publicado el 31-Ago-2016 • 18.53hs
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Seguridad Física Ver más »
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Informe sobre el pishing 2017. Por Wombat.
Publicado el 19-Ene-2017 • 15.47hs
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Hotel de lujo en el corazón de Manhattan implanta cámaras Scati Eye
Publicado el 4-Jul-2016 • 18.51hs
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