Oracle Reports Q2 GAAP EPS Up 24% to 53 Cents; Q2 Non-GAAP EPS Up 18% to 64 Cents

Tue Dec 18, 2012 4:01pm EST

* Reuters is not responsible for the content in this press release.

  REDWOOD SHORES, CA, Dec 18 (Marketwire) -- 
Oracle Corporation (NASDAQ: ORCL) today announced that fiscal 2013 Q2
total revenues were up 3% to $9.1 billion. New software licenses and
cloud software subscriptions revenues were up 17% to $2.4 billion.
Software license updates and product support revenues were up 7% to $4.3
billion. Hardware systems products revenues were $734 million. GAAP
operating income was up 12% to $3.5 billion, and GAAP operating margin
was 38%. Non-GAAP operating income was up 9% to $4.3 billion, and
non-GAAP operating margin was 47%. GAAP net income was up 18% to $2.6
billion, while non-GAAP net income was up 12% to $3.1 billion. GAAP
earnings per share were $0.53, up 24% compared to last year while
non-GAAP earnings per share were up 18% to $0.64. GAAP operating cash
flow on a trailing twelve-month basis was $13.5 billion. 

    Without the impact of the US dollar strengthening compared to foreign
currencies, Oracle's reported Q2 GAAP earnings per share would have been
$0.01 higher at $0.54, up 26%, and Q2 non-GAAP earnings per share would
have been $0.01 higher at $0.65, up 19%. Total revenues also would have
been up 5%, and new software licenses and cloud software subscriptions
revenues would have been up 18%. 

    "New software license sales and cloud subscriptions grew 18% in constant
currency," said Oracle President and CFO, Safra Catz. "Strong organic
growth in our software business coupled with a focus on the highly
profitable engineered systems segment of our hardware business enabled a
Q2 non-GAAP operating margin of 47%. During the last four quarters
operating cash flow was more than $13.5 billion -- $10.2 billion of which
was returned to our shareholders as we repurchased nearly 350 million
ORCL shares during that same twelve month period." 

    "Q2 performance was strong and broad based as all geographies reported
double-digit revenue growth in new software license and cloud
subscriptions," said Oracle President, Mark Hurd. "Applications,
middleware and database all had double-digit growth in new software
license and cloud subscriptions, with applications leading the pack with
growth of over 30%. Our cloud offering of HCM, CRM and ERP applications
plus the Oracle database and Java platform services is the strongest and
most complete in the industry. Already approaching a one billion dollar
run rate, our Cloud business will become much bigger over time." 

    "Sun has proven to be one of the most strategic and profitable
acquisitions we have ever made," said Oracle CEO, Larry Ellison. "Sun
technology enabled Oracle to become a leader in the highly profitable
engineered system segment of the hardware business. I believe that
products like Exadata and the SPARC SuperCluster will not only continue
to drive improved profitability in our hardware business, by the end of
this fiscal year, they will also drive growth in our hardware business."

    On December 3, 2012, the Board of Directors declared an accelerated
second, third and fourth quarter cash dividend totaling $0.18 per share
of outstanding common stock. This accelerated dividend is intended by the
Board to be in lieu of quarterly dividends Oracle would have otherwise
announced with its quarterly earnings results for the second, third and
fourth quarters of fiscal year 2013, and that would have been paid in
calendar year 2013. This accelerated dividend will be paid to
stockholders of record as of the close of business on December 14, 2012,
with a payment date of December 21, 2012.

    Q2 Fiscal 2013 Earnings Conference Call and Webcast 

    Oracle will hold a conference call and webcast today to discuss these
results at 2:00 p.m. Pacific. You may listen to the call by dialing (913)
981-5520, Passcode: 810144. 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 Q2 results and
Fiscal 2013 financial tables are available on the Oracle Investor
Relations website. 

    A replay of the conference call will also be available by dialing (719)
457-0820 or (888) 203-1112, Passcode: 4005111.

    About Oracle 

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

    Trademarks 

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

    "Safe Harbor" Statement: Statements in this press release relating to
Oracle's future plans, expectations, beliefs, intentions and prospects,
including statements regarding our Cloud business becoming bigger over
time and products like Exadata and SPARC SuperCluster driving
profitability and growth in our hardware business, are "forward-looking
statements" and are subject to material risks and uncertainties. Many
factors could affect our current expectations and our actual results, and
could cause actual results to differ materially. We presently consider
the following to be among the important factors that could cause actual
results to differ materially from expectations: (1) Economic, political
and market conditions, including the current European debt crisis, can
adversely affect our business, results of operations and financial
condition, including our revenue growth and profitability, which in turn
could adversely affect our stock price. (2) We may fail to achieve our
financial forecasts due to such factors as delays or size reductions in
transactions, fewer large transactions in a particular quarter,
unanticipated fluctuations in currency exchange rates, delays in delivery
of new products or releases or a decline in our renewal rates for
software license updates and product support. (3) Our hardware systems
business may not be successful, and we may fail to achieve our financial
forecasts with respect to this business. (4) We have an active
acquisition program and our acquisitions may not be successful, may
involve unanticipated costs or other integration issues or may disrupt
our existing operations. (5) Our international sales and operations
subject us to additional risks that can adversely affect our operating
results, including risks relating to foreign currency gains and losses
and risks relating to compliance with international and U.S. laws that
apply to our international operations. (6) Intense competitive forces
demand rapid technological advances and frequent new product
introductions and could require us to reduce prices or cause us to lose
customers. (7) If we are unable to develop new or sufficiently
differentiated products and services, or to enhance and improve our
products and support services in a timely manner or to position and/or
price our products and services to meet market demand, customers may not
buy new software licenses, cloud software subscriptions, or hardware
systems products, or purchase or renew support contracts. A detailed
discussion of these factors and other risks that affect our business is
contained in our SEC filings, including our most recent reports on Form
10-K and Form 10-Q, particularly under the heading "Risk Factors." Copies
of these filings are available online from the SEC or by contacting
Oracle Corporation's Investor Relations Department at (650) 506-4073 or
by clicking on SEC Filings on Oracle's Investor Relations website at
http://www.oracle.com/investor. All information set forth in this press
release is current as of December 18, 2012. Oracle undertakes no duty to
update any statement in light of new information or future events.

                            ORACLE CORPORATION

                     Q2 FISCAL 2013 FINANCIAL RESULTS
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                  ($ in millions, except per share data)

                   Three Months Ended November 30,
                  --------------------------------
                                                                % Increase
                                                                (Decrease)
                                                                    in
                                                    % Increase   Constant
                           % of             % of    (Decrease)   Currency
                   2012  Revenues   2011  Revenues    in US $       (1)
                  ------ --------  ------ --------  ----------  ----------
REVENUES
  New software
   licenses and
   cloud software
   subscriptions  $2,389       26% $2,048       23%         17%         18% 
  Software
   license
   updates and
   product
   support         4,260       47%  3,986       46%          7%          8% 
                  ------ --------  ------ --------
    Software
     Revenues      6,649       73%  6,034       69%         10%         11% 
                  ------ --------  ------ --------
  Hardware
   systems
   products          734        8%    953       11%        (23%)       (23%)
  Hardware
   systems
   support           587        7%    625        7%         (6%)        (5%)
                  ------ --------  ------ --------
    Hardware
     Systems
     Revenues      1,321       15%  1,578       18%        (16%)       (16%)
                  ------ --------  ------ --------
    Services
     Revenues      1,124       12%  1,180       13%         (5%)        (3%)
                  ------ --------  ------ --------

      Total
       Revenues    9,094      100%  8,792      100%          3%          5% 
                  ------ --------  ------ --------

OPERATING
 EXPENSES
  Sales and
   marketing       1,773       20%  1,697       19%          4%          6% 
  Software
   license
   updates and
   product
   support           270        3%    298        3%         (9%)        (8%)
  Hardware
   systems
   products          367        4%    471        5%        (22%)       (22%)
  Hardware
   systems
   support           227        3%    258        3%        (12%)       (11%)
  Services           930       10%    929       11%          0%          2% 
  Research and
   development     1,199       13%  1,102       13%          9%         10% 
  General and
   administrative    263        3%    277        3%         (5%)        (3%)
  Amortization of
   intangible
   assets            584        6%    592        7%         (1%)        (1%)
  Acquisition
   related and
   other (2)        (121)      (1%)     5        0%     (2,432%)    (1,991%)
  Restructuring      131        1%     52        1%        151%        152% 
                  ------ --------  ------ --------

      Total
       Operating
       Expenses    5,623       62%  5,681       65%         (1%)         0% 
                  ------ --------  ------ --------

OPERATING INCOME   3,471       38%  3,111       35%         12%         13% 
  Interest
   expense          (195)      (2%)  (192)      (2%)         2%          2% 
  Non-operating
   income, net         4        0%     41        1%        (91%)       (90%)
                  ------ --------  ------ --------

INCOME BEFORE
 PROVISION FOR
 INCOME TAXES      3,280       36%  2,960       34%         11%         13% 
                  ------ --------  ------ --------
  Provision for
   income taxes      699        8%    768        9%         (9%)        (8%)
                  ------ --------  ------ --------

NET INCOME        $2,581       28% $2,192       25%         18%         20% 
                  ====== ========  ====== ========

EARNINGS PER
 SHARE:
  Basic           $ 0.54           $ 0.43
  Diluted         $ 0.53           $ 0.43

WEIGHTED AVERAGE
 COMMON SHARES
 OUTSTANDING:
  Basic            4,792            5,041
  Diluted          4,868            5,123

(1) We compare the percent change in the results from one period to another 
    period using constant currency disclosure. We present constant currency 
    information to provide a framework for assessing how our underlying
    businesses performed excluding the effect of foreign currency rate
    fluctuations. To present this information, current and comparative prior
    period results for entities reporting in currencies other than United
    States dollars are converted into United States dollars at the exchange 
    rates in effect on May 31, 2012, which was the last day of our prior
    fiscal year, rather than the actual exchange rates in effect during the 
    respective periods. Movements in international currencies relative to
    the United States dollar during the three months ended November 30, 2012
    compared with the corresponding prior year period decreased our revenues
    by 2 percentage points, operating expenses by 1 percentage point and
    operating income by 1 percentage point.

(2) Acquisition related and other expenses for the three months ended
    November 30, 2012 included a net benefit of $145 million due to an
    acquisition related item.

                             ORACLE CORPORATION

                      Q2 FISCAL 2013 FINANCIAL RESULTS
      RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1)
                   ($ in millions, except per share data)

                              Three Months Ended November 30,
                 ---------------------------------------------------------
                                                                     2011
                   2012                2012      2011                Non-
                   GAAP      Adj.    Non-GAAP    GAAP      Adj.      GAAP
                 --------  --------  --------  --------  --------  -------

TOTAL REVENUES
 (3) (4) (5)     $  9,094  $     19  $  9,113  $  8,792  $     19  $ 8,811

TOTAL SOFTWARE
 REVENUES (3)
 (4)             $  6,649  $     16  $  6,665  $  6,034  $     10  $ 6,044
  New software
   licenses and
   cloud
   software
   subscriptions
   (3)              2,389        12     2,401     2,048         -    2,048
  Software
   license
   updates and
   product
   support (4)      4,260         4     4,264     3,986        10    3,996

TOTAL HARDWARE
 SYSTEMS
 REVENUES (5)    $  1,321  $      3  $  1,324  $  1,578  $      9  $ 1,587
  Hardware
   systems
   products           734         -       734       953         -      953
  Hardware
   systems
   support (5)        587         3       590       625         9      634

TOTAL OPERATING
 EXPENSES        $  5,623  $   (782) $  4,841  $  5,681  $   (799) $ 4,882
  Stock-based
   compensation
   (6)                188      (188)        -       150      (150)       -
  Amortization
   of intangible
   assets (7)         584      (584)        -       592      (592)       -
  Acquisition
   related and
   other             (121)      121         -         5        (5)       -
  Restructuring       131      (131)        -        52       (52)       -

OPERATING INCOME $  3,471  $    801  $  4,272  $  3,111  $    818  $ 3,929

OPERATING
 MARGIN%               38%                 47%       35%                45% 

INCOME TAX
 EFFECTS (8)     $    699  $    260  $    959  $    768  $    226  $   994

NET INCOME       $  2,581  $    541  $  3,122  $  2,192  $    592  $ 2,784

DILUTED EARNINGS
 PER SHARE       $   0.53            $   0.64  $   0.43            $  0.54

DILUTED WEIGHTED
 AVERAGE COMMON
 SHARES
 OUTSTANDING        4,868         -     4,868     5,123         -    5,123

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

TOTAL REVENUES
 (3) (4) (5)              3%            3%            5%            5% 

TOTAL SOFTWARE
 REVENUES (3)
 (4)                     10%           10%           11%           12% 
  New software
   licenses and
   cloud
   software
   subscriptions
   (3)                   17%           17%           18%           18% 
  Software
   license
   updates and
   product
   support (4)            7%            7%            8%            8% 

TOTAL HARDWARE
 SYSTEMS
 REVENUES (5)           (16%)         (17%)         (16%)         (16%)
  Hardware
   systems
   products             (23%)         (23%)         (23%)         (23%)
  Hardware
   systems
   support (5)           (6%)          (7%)          (5%)          (6%)

TOTAL OPERATING
 EXPENSES                (1%)          (1%)           0%            0% 
  Stock-based
   compensation
   (6)                   26%            *            26%            *
  Amortization
   of intangible
   assets (7)            (1%)           *            (1%)           *
  Acquisition
   related and
   other             (2,432%)           *        (1,991%)           *
  Restructuring         151%            *           152%            *

OPERATING INCOME         12%            9%           13%           10% 

OPERATING
 MARGIN%            278 bp.       229 bp.       287 bp.       224 bp.

INCOME TAX
 EFFECTS (8)             (9%)          (3%)          (8%)          (2%)

NET INCOME               18%           12%           20%           13% 

DILUTED EARNINGS
 PER SHARE               24%           18%           26%           19% 

DILUTED WEIGHTED
 AVERAGE COMMON
 SHARES
 OUTSTANDING             (5%)          (5%)          (5%)          (5%)

(1) This presentation includes non-GAAP measures. Our non-GAAP measures are 
    not meant to be considered in isolation or as a substitute for
    comparable GAAP measures, and should be read only in conjunction with
    our consolidated financial statements prepared in accordance with GAAP. 
    For a detailed explanation of the adjustments made to comparable GAAP
    measures, the reasons why management uses these measures, the usefulness
    of these measures and the material limitations on the usefulness of
    these measures, please see Appendix A.

(2) We compare the percent change in the results from one period to another 
    period using constant currency disclosure. We present constant currency 
    information to provide a framework for assessing how our underlying
    businesses performed excluding the effect of foreign currency rate
    fluctuations. To present this information, current and comparative prior
    period results for entities reporting in currencies other than United
    States dollars are converted into United States dollars at the exchange 
    rates in effect on May 31, 2012, which was the last day of our prior
    fiscal year, rather than the actual exchange rates in effect during the 
    respective periods.

(3) As of November 30, 2012, approximately $5 million in estimated revenues 
    related to assumed cloud software subscriptions contracts will not be
    recognized for the remainder of fiscal 2013 due to business combination 
    accounting rules.

(4) As of November 30, 2012, approximately $5 million and $2 million in
    estimated revenues related to assumed software support contracts will
    not be recognized for the remainder of fiscal 2013 and fiscal 2014,
    respectively, due to business combination accounting rules.

(5) As of November 30, 2012, approximately $5 million and $2 million in
    estimated revenues related to hardware systems support contracts will
    not be recognized for the remainder of fiscal 2013 and fiscal 2014,
    respectively, due to business combination accounting rules.

(6) Stock-based compensation was included in the following GAAP operating
    expense categories:

                           Three Months Ended         Three Months Ended
                            November 30, 2012          November 30, 2011
                       -------------------------- --------------------------
                         GAAP     Adj.   Non-GAAP   GAAP     Adj.   Non-GAAP
                       -------- -------  -------- -------- -------  --------
    Sales and
     marketing         $     43 $   (43) $      - $     29 $   (29) $      -
    Software license
     updates and
     product support          5      (5)        -        5      (5)        -
    Hardware systems
     products                 1      (1)        -        -       -         -
    Hardware systems
     support                  1      (1)        -        2      (2)        -
    Services                  8      (8)        -        6      (6)        -
    Research and
     development             89     (89)        -       68     (68)        -
    General and
     administrative          41     (41)        -       40     (40)        -
                       -------- -------  -------- -------- -------  --------
      Subtotal              188    (188)        -      150    (150)        -
                       -------- -------  -------- -------- -------  --------
    Acquisition
     related and other        4      (4)        -        2      (2)        -
                       -------- -------  -------- -------- -------  --------
      Total stock-
       based
       compensation    $    192 $  (192) $      - $    152 $  (152) $      -
                       -------- -------  -------- -------- -------  --------

(7) Estimated future annual amortization expense related to intangible
     assets as of November 30, 2012 was as follows:
    Remainder of
     Fiscal 2013       $  1,140
    Fiscal 2014           1,972
    Fiscal 2015           1,522
    Fiscal 2016             967
    Fiscal 2017             408
    Fiscal 2018             284
    Thereafter              569
                       --------
      Total intangible
       assets subject
       to amortization    6,862
    In-process
     research and
     development             11
                       --------
      Total intangible
       assets, net     $  6,873
                       ========

(8) Income tax effects were calculated reflecting an effective GAAP tax rate
     of 21.3% and 25.9% in the second quarter of fiscal 2013 and 2012,
     respectively, and an effective non-GAAP tax rate of 23.5% and 26.3% in 
     the second quarter of fiscal 2013 and 2012, respectively. The
     difference between our GAAP and non-GAAP tax rates in the second
     quarter of fiscal 2013 was primarily due to the net tax effects of
     acquisition related items, including the tax effect of amortization of 
     intangible assets. The difference between our GAAP and non-GAAP tax
     rates in the second quarter of fiscal 2012 was primarily due to
     differences in jurisdictional tax rates and the related tax benefits
     attributable to our restructuring expenses.

*   Not meaningful

                            ORACLE CORPORATION

               Q2 FISCAL 2013 YEAR TO DATE FINANCIAL RESULTS
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                  ($ in millions, except per share data)

                      Six Months Ended November 30,
                   ----------------------------------
                                                                      %
                                                                  Increase
                                                                 (Decrease) 
                                                           %         in
                                                        Increase  Constant
                             % of              % of    (Decrease) Currency
                     2012  Revenues    2011  Revenues    in US $     (1)
                   ------- --------  ------- --------  --------- 
--------REVENUES
  New software
   licenses and
   cloud software
   subscriptions   $ 3,963       23% $ 3,546       21%        12%       14% 
  Software license
   updates and
   product support   8,400       49%   8,008       46%         5%        8% 
                   ------- --------  ------- --------
    Software
     Revenues       12,363       72%  11,554       67%         7%       10% 
                   ------- --------  ------- --------
  Hardware systems
   products          1,513        9%   1,981       12%       (24%)     (22%)
  Hardware systems
   support           1,161        6%   1,271        7%        (9%)      (6%)
                   ------- --------  ------- --------
    Hardware
     Systems
     Revenues        2,674       15%   3,252       19%       (18%)     (15%)
                   ------- --------  ------- --------
    Services
     Revenues        2,238       13%   2,360       14%        (5%)      (2%)
                   ------- --------  ------- --------
      Total
       Revenues     17,275      100%  17,166      100%         1%        4% 
                   ------- --------  ------- --------

OPERATING EXPENSES
  Sales and
   marketing         3,319       19%   3,327       19%         0%        3% 
  Software license
   updates and
   product support     553        3%     594        3%        (7%)      (4%)
  Hardware systems
   products            751        4%     943        6%       (20%)     (18%)
  Hardware systems
   support             451        3%     541        3%       (17%)     (14%)
  Services           1,814       10%   1,865       11%        (3%)       1% 
  Research and
   development       2,400       14%   2,152       13%        11%       13% 
  General and
   administrative      538        3%     587        3%        (8%)      (6%)
  Amortization of
   intangible
   assets            1,203        7%   1,184        7%         2%        2% 
  Acquisition
   related and
   other (2)          (380)      (2%)     25        0%    (1,647%)  (1,696%)
  Restructuring        276        2%     154        1%        80%       91% 
                   ------- --------  ------- --------
      Total
       Operating
       Expenses     10,925       63%  11,372       66%        (4%)      (1%)
                   ------- --------  ------- --------

OPERATING INCOME     6,350       37%   5,794       34%        10%       14% 
  Interest expense    (382)      (2%)   (384)      (2%)        0%        0% 
  Non-operating
   income, net          14        0%      21        0%       (29%)      (2%)
                   ------- --------  ------- --------

INCOME BEFORE
 PROVISION FOR
 INCOME TAXES        5,982       35%   5,431       32%        10%       15% 
                   ------- --------  ------- --------
  Provision for
   income taxes      1,367        8%   1,399        9%        (2%)       2% 
                   ------- --------  ------- --------

NET INCOME         $ 4,615       27% $ 4,032       23%        14%       19% 
                   ======= ========  ======= ========

EARNINGS PER
 SHARE:
  Basic            $  0.96           $  0.80
  Diluted          $  0.94           $  0.78

WEIGHTED AVERAGE
 COMMON SHARES
 OUTSTANDING:
  Basic              4,829             5,052
  Diluted            4,904             5,137

(1) We compare the percent change in the results from one period to another 
    period using constant currency disclosure. We present constant currency 
    information to provide a framework for assessing how our underlying
    businesses performed excluding the effect of foreign currency rate
    fluctuations. To present this information, current and comparative prior
    period results for entities reporting in currencies other than United
    States dollars are converted into United States dollars at the exchange 
    rates in effect on May 31, 2012, which was the last day of our prior
    fiscal year, rather than the actual exchange rates in effect during the 
    respective periods. Movements in international currencies relative to
    the United States dollar during the six months ended November 30, 2012
    compared with the corresponding prior year period decreased our revenues
    by 3 percentage points, operating expenses by 3 percentage points and
    operating income by 4 percentage points.

(2) Acquisition related and other expenses for the six months ended November
    30, 2012 included a benefit of $306 million related to certain
    litigation and a net benefit of $129 million due to an acquisition
    related item.

                             ORACLE CORPORATION

                Q2 FISCAL 2013 YEAR TO DATE FINANCIAL RESULTS
      RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1)
                   ($ in millions, except per share data)

                               Six Months Ended November 30,
                 ---------------------------------------------------------
                                                                     2011
                   2012                2012      2011                Non-
                   GAAP      Adj.    Non-GAAP    GAAP      Adj.      GAAP
                 --------  --------  --------  --------  --------  -------

TOTAL REVENUES
 (3) (4) (5)     $ 17,275  $     47  $ 17,322  $ 17,166  $     43  $17,209

TOTAL SOFTWARE
 REVENUES (3)
 (4)             $ 12,363  $     39  $ 12,402  $ 11,554  $     24  $11,578
  New software
   licenses and
   cloud
   software
   subscriptions
   (3)              3,963        31     3,994     3,546         -    3,546
  Software
   license
   updates and
   product
   support (4)      8,400         8     8,408     8,008        24    8,032

TOTAL HARDWARE
 SYSTEMS
 REVENUES (5)    $  2,674  $      8  $  2,682  $  3,252  $     19  $ 3,271
  Hardware
   systems
   products         1,513         -     1,513     1,981         -    1,981
  Hardware
   systems
   support (5)      1,161         8     1,169     1,271        19    1,290

TOTAL OPERATING
 EXPENSES        $ 10,925  $ (1,464) $  9,461  $ 11,372  $ (1,658) $ 9,714
  Stock-based
   compensation
   (6)                365      (365)        -       295      (295)       -
  Amortization
   of intangible
   assets (7)       1,203    (1,203)        -     1,184    (1,184)       -
  Acquisition
   related and
   other             (380)      380         -        25       (25)       -
  Restructuring       276      (276)        -       154      (154)       -

OPERATING INCOME $  6,350  $  1,511  $  7,861  $  5,794  $  1,701  $ 7,495

OPERATING MARGIN
 %                     37%                 45%       34%                44% 

INCOME TAX
 EFFECTS (8)     $  1,367  $    390  $  1,757  $  1,399  $    483  $ 1,882

NET INCOME       $  4,615  $  1,121  $  5,736  $  4,032  $  1,218  $ 5,250

DILUTED EARNINGS
 PER SHARE       $   0.94            $   1.17  $   0.78            $  1.02

DILUTED WEIGHTED
 AVERAGE COMMON
 SHARES
 OUTSTANDING        4,904         -     4,904     5,137         -    5,137

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

TOTAL REVENUES
 (3) (4) (5)              1%            1%            4%            4% 

TOTAL SOFTWARE
 REVENUES (3)
 (4)                      7%            7%           10%           10% 
  New software
   licenses and
   cloud
   software
   subscriptions
   (3)                   12%           13%           14%           15% 
  Software
   license
   updates and
   product
   support (4)            5%            5%            8%            8% 

TOTAL HARDWARE
 SYSTEMS
 REVENUES (5)           (18%)         (18%)         (15%)         (16%)
  Hardware
   systems
   products             (24%)         (24%)         (22%)         (22%)
  Hardware
   systems
   support (5)           (9%)          (9%)          (6%)          (7%)

TOTAL OPERATING
 EXPENSES                (4%)          (3%)          (1%)           0% 
  Stock-based
   compensation
   (6)                   23%            *            23%            *
  Amortization
   of intangible
   assets (7)             2%            *             2%            *
  Acquisition
   related and
   other             (1,647%)           *        (1,696%)           *
  Restructuring          80%            *            91%            *

OPERATING INCOME         10%            5%           14%            8% 

OPERATING MARGIN
 %                  301 bp.       183 bp.       331 bp.       187 bp.

INCOME TAX
 EFFECTS (8)             (2%)          (7%)           2%           (3%)

NET INCOME               14%            9%           19%           13% 

DILUTED EARNINGS
 PER SHARE               20%           14%           25%           18% 

DILUTED WEIGHTED
 AVERAGE COMMON
 SHARES
 OUTSTANDING             (5%)          (5%)          (5%)          (5%)

(1) This presentation includes non-GAAP measures. Our non-GAAP measures are 
    not meant to be considered in isolation or as a substitute for
    comparable GAAP measures, and should be read only in conjunction with
    our consolidated financial statements prepared in accordance with GAAP. 
    For a detailed explanation of the adjustments made to comparable GAAP
    measures, the reasons why management uses these measures, the usefulness
    of these measures and the material limitations on the usefulness of
    these measures, please see Appendix A.

(2) We compare the percent change in the results from one period to another 
    period using constant currency disclosure. We present constant currency 
    information to provide a framework for assessing how our underlying
    businesses performed excluding the effect of foreign currency rate
    fluctuations. To present this information, current and comparative prior
    period results for entities reporting in currencies other than United
    States dollars are converted into United States dollars at the exchange 
    rates in effect on May 31, 2012, which was the last day of our prior
    fiscal year, rather than the actual exchange rates in effect during the 
    respective periods.

(3) As of November 30, 2012, approximately $5 million in estimated revenues 
    related to assumed cloud software subscriptions contracts will not be
    recognized for the remainder of fiscal 2013 due to business combination 
    accounting rules.

(4) As of November 30, 2012, approximately $5 million and $2 million in
    estimated revenues related to assumed software support contracts will
    not be recognized for the remainder of fiscal 2013 and fiscal 2014,
    respectively, due to business combination accounting rules.

(5) As of November 30, 2012, approximately $5 million and $2 million in
    estimated revenues related to hardware systems support contracts will
    not be recognized for the remainder of fiscal 2013 and fiscal 2014,
    respectively, due to business combination accounting rules.

(6) Stock-based compensation was included in the following GAAP operating
    expense categories:

                            Six Months Ended           Six Months Ended
                            November 30, 2012          November 30, 2011
                       -------------------------- --------------------------
                         GAAP     Adj.   Non-GAAP   GAAP     Adj.   Non-GAAP
                       -------- -------  -------- -------- -------  --------
      Sales and
       marketing       $     81 $   (81) $      - $     55 $   (55) $      -
      Software license
       updates and
       product support       10     (10)        -        8      (8)        -
      Hardware systems
       products               1      (1)        -        1      (1)        -
      Hardware systems
       support                2      (2)        -        3      (3)        -
      Services               17     (17)        -       10     (10)        -
      Research and
       development          172    (172)        -      139    (139)        -
      General and
       administrative        82     (82)        -       79     (79)        -
                       -------- -------  -------- -------- -------  --------
        Subtotal            365    (365)        -      295    (295)        -
                       -------- -------  -------- -------- -------  --------
      Acquisition
       related and
       other                 21     (21)        -        3      (3)        -
                       -------- -------  -------- -------- -------  --------
        Total stock-
         based
         compensation  $    386 $  (386) $      - $    298 $  (298) $      -
                       ======== =======  ======== ======== =======  ========

(7) Estimated future annual amortization expense related to intangible
     assets as of November 30, 2012 was as follows:

      Remainder of
       Fiscal 2013     $  1,140
      Fiscal 2014         1,972
      Fiscal 2015         1,522
      Fiscal 2016           967
      Fiscal 2017           408
      Fiscal 2018           284
      Thereafter            569
                       --------
        Total
         intangible
         assets
         subject to
         amortization     6,862
      In-process
       research and
       development           11
                       --------
        Total
         intangible
         assets, net   $  6,873
                       ========

(8) Income tax effects were calculated reflecting an effective GAAP tax rate
    of 22.9% and 25.8% in the first half of fiscal 2013 and 2012,
    respectively, and an effective non-GAAP tax rate of 23.5% and 26.4% in
    the first half of fiscal 2013 and 2012, respectively. The differences
    between our GAAP and non-GAAP tax rates in the first half of fiscal 2013
    were primarily due to the net tax effects of acquisition related items, 
    including the tax effect of amortization of intangible assets, partially
    offset by the disproportionate tax rate impact of certain discrete items
    for the period. The difference between our GAAP and non-GAAP tax rates
    in the first half of fiscal 2012 was primarily due to income tax effects
    related to our acquired tax exposures and the differences in
    jurisdictional tax rates and the related tax benefits attributable to
    our restructuring expenses.

*   Not meaningful

                             ORACLE CORPORATION

                      Q2 FISCAL 2013 FINANCIAL RESULTS
                    CONDENSED CONSOLIDATED BALANCE SHEETS
                               ($ in millions)

                                                   November 30,    May 31,
                                                       2012         2012
                                                   ------------ ------------
ASSETS

  Current Assets:
    Cash and cash equivalents                      $     15,912 $     14,955
    Marketable securities                                17,783       15,721
    Trade receivables, net                                4,401        6,377
    Inventories                                             164          158
    Deferred tax assets                                     893          877
    Prepaid expenses and other current assets             1,976        1,935
                                                   ------------ ------------
      Total Current Assets                               41,129       40,023

  Non-Current Assets:
    Property, plant and equipment, net                    3,093        3,021
    Intangible assets, net                                6,873        7,899
    Goodwill                                             25,458       25,119
    Deferred tax assets                                     782          595
    Other assets                                          2,322        1,670
                                                   ------------ ------------
      Total Non-Current Assets                           38,528       38,304
                                                   ------------ ------------

TOTAL ASSETS                                       $     79,657 $     78,327
                                                   ============ ============

LIABILITIES AND EQUITY

  Current Liabilities:
    Notes payable, current and other current
     borrowings                                    $      1,250 $      2,950
    Accounts payable                                        372          438
    Accrued compensation and related benefits             1,546        2,002
    Deferred revenues                                     6,504        7,035
    Other current liabilities                             2,675        2,963
                                                   ------------ ------------
      Total Current Liabilities                          12,347       15,388

  Non-Current Liabilities:
    Notes payable and other non-current borrowings       18,507       13,524
    Income taxes payable                                  3,906        3,759
    Other non-current liabilities                         1,487        1,569
                                                   ------------ ------------
      Total Non-Current Liabilities                      23,900       18,852

  Equity                                                 43,410       44,087
                                                   ------------ ------------

TOTAL LIABILITIES AND EQUITY                       $     79,657 $     78,327
                                                   ============ ============

                             ORACLE CORPORATION

                      Q2 FISCAL 2013 FINANCIAL RESULTS
              CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                              ($ in millions)

                                              Six Months Ended November 30, 
                                             ------------------------------ 
                                                  2012            2011
                                             --------------  -------------- 
Cash Flows From Operating Activities:
  Net income                                 $        4,615  $        4,032 
  Adjustments to reconcile net income to net
   cash provided by operating activities:
    Depreciation                                        261             226 
    Amortization of intangible assets                 1,203           1,184 
    Deferred income taxes                               (40)           (137)
    Stock-based compensation                            386             298 
    Tax benefits on the exercise of stock
     options and vesting of restricted
     stock-based awards                                 179              94 
    Excess tax benefits on the exercise of
     stock options and vesting of restricted
     stock-based awards                                 (95)            (53)
    Other, net                                           80              53 
    Changes in operating assets and
     liabilities, net of effects from
     acquisitions:
      Decrease in trade receivables, net              2,038           2,128 
      Decrease in inventories                             -              93 
      (Increase) decrease in prepaid
       expenses and other assets                       (213)            424 
      Decrease in accounts payable and other
       liabilities                                     (790)         (1,306)
      (Decrease) increase in income taxes
       payable                                         (559)            184 
      Decrease in deferred revenues                    (599)           (544)
                                             --------------  -------------- 
        Net cash provided by operating
         activities                                   6,466           6,676 
                                             --------------  -------------- 

Cash Flows From Investing Activities:
  Purchases of marketable securities and
   other investments                                (17,314)        (21,422)
  Proceeds from maturities and sales of
   marketable securities and other
   investments                                       15,263          16,335 
  Acquisitions, net of cash acquired                   (660)           (571)
  Capital expenditures                                 (351)           (289)
                                             --------------  -------------- 
        Net cash used for investing
         activities                                  (3,062)         (5,947)
                                             --------------  -------------- 

Cash Flows From Financing Activities:
  Payments for repurchases of common stock           (6,072)         (1,798)
  Proceeds from issuances of common stock               752             434 
  Payments of dividends to stockholders                (583)           (607)
  Proceeds from borrowings, net of issuance
   costs                                              4,974               - 
  Repayments of borrowings                           (1,700)         (1,150)
  Excess tax benefits on the exercise of
   stock options and vesting of restricted
   stock-based awards                                    95              53 
  Distributions to noncontrolling interests             (31)           (163)
                                             --------------  -------------- 
        Net cash used for financing
         activities                                  (2,565)         (3,231)
                                             --------------  -------------- 

Effect of exchange rate changes on cash and
 cash equivalents                                       118            (375)
                                             --------------  -------------- 

Net increase (decrease) in cash and cash
 equivalents                                            957          (2,877)
                                             --------------  -------------- 

Cash and cash equivalents at beginning of
 period                                              14,955          16,163 
                                             --------------  -------------- 

Cash and cash equivalents at end of period   $       15,912  $       13,286 
                                             ==============  ============== 

                             ORACLE CORPORATION
                      Q2 FISCAL 2013 FINANCIAL RESULTS
                  FREE CASH FLOW - TRAILING 4-QUARTERS (1)
                               ($ in millions)

                         Fiscal 2012                    Fiscal 2013
               ------------------------------- -----------------------------
                  Q1      Q2      Q3      Q4      Q1      Q2     Q3     Q4
               ------- ------- ------- ------- ------- ------- ------ ------

GAAP Operating
 Cash Flow     $12,818 $13,129 $13,463 $13,743 $13,993 $13,533

Capital
 Expenditures
 (2)              (492)   (500)   (509)   (648)   (627)   (710)
               ------- ------- ------- ------- ------- ------- ------ ------

Free Cash Flow $12,326 $12,629 $12,954 $13,095 $13,366 $12,823
               ======= ======= ======= ======= ======= ======= ====== ======

% Growth over
 prior year         46%     45%     36%     22%      8%      2%

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

GAAP Net
 Income        $ 9,035 $ 9,356 $ 9,738 $ 9,981 $10,175 $10,564

Free Cash Flow
 as a % of Net
 Income            136%    135%    133%    131%    131%    121%
               ------- ------- ------- ------- ------- ------- ------ ------

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

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

                             ORACLE CORPORATION
                      Q2 FISCAL 2013 FINANCIAL RESULTS
          SUPPLEMENTAL ANALYSIS OF GAAP REVENUES AND HEADCOUNT (1)
                               ($ in millions)

                                              Fiscal 2012
                           ------------------------------------------------ 
                              Q1        Q2        Q3        Q4       TOTAL
                           --------  --------  --------  --------  -------- 
REVENUES
  New software licenses
   and cloud software
   subscriptions           $  1,498  $  2,048  $  2,374  $  3,985  $  9,906 
  Software license updates
   and product support        4,022     3,986     4,051     4,152    16,210 
                           --------  --------  --------  --------  -------- 
    Software Revenues         5,520     6,034     6,425     8,137    26,116 

  Hardware systems
   products                   1,029       953       869       977     3,827 
  Hardware systems support      645       625       604       600     2,475 
                           --------  --------  --------  --------  -------- 
    Hardware Systems
     Revenues                 1,674     1,578     1,473     1,577     6,302 

    Services Revenues         1,180     1,180     1,141     1,202     4,703 

                           --------  --------  --------  --------  -------- 
      Total Revenues       $  8,374  $  8,792  $  9,039  $ 10,916  $ 37,121 
                           ========  ========  ========  ========  ======== 

AS REPORTED REVENUE GROWTH
 RATES
  New software licenses
   and cloud software
   subscriptions                17%        2%        7%        7%        7% 
  Software license updates
   and product support          17%        9%        8%        5%       10% 
    Software Revenues           17%        7%        8%        6%        9% 

  Hardware systems
   products                     (5%)     (14%)     (16%)     (16%)     (13%)
  Hardware systems support       4%       (2%)      (4%)     (11%)      (3%)
    Hardware Systems
     Revenues                   (1%)     (10%)     (11%)     (14%)      (9%)

    Services Revenues           10%        0%        0%       (4%)       1% 

      Total Revenues            12%        2%        3%        1%        4% 

CONSTANT CURRENCY GROWTH
 RATES (2)
  New software licenses
   and cloud software
   subscriptions                11%        3%        8%       11%        8% 
  Software license updates
   and product support          10%        9%        9%        8%        9% 
    Software Revenues           11%        7%        9%       10%        9% 

  Hardware systems
   products                    (11%)     (14%)     (16%)     (13%)     (14%)
  Hardware systems support      (3%)      (3%)      (3%)      (7%)      (4%)
    Hardware Systems
     Revenues                   (8%)     (10%)     (11%)     (11%)     (10%)

    Services Revenues            5%        0%        1%        0%        1% 

      Total Revenues             5%        2%        4%        5%        4% 

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

GEOGRAPHIC REVENUES

  REVENUES
    Americas               $  4,226  $  4,532  $  4,707  $  5,771  $ 19,236 
    Europe, Middle East &
     Africa                   2,704     2,756     2,787     3,314    11,561 
    Asia Pacific              1,444     1,504     1,545     1,831     6,324 
                           --------  --------  --------  --------  -------- 
      Total Revenues       $  8,374  $  8,792  $  9,039  $ 10,916  $ 37,121 
                           ========  ========  ========  ========  ======== 

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

HEADCOUNT

  GEOGRAPHIC AREA
    Americas                 46,338    46,672    47,884    48,901
    Europe, Middle East &
     Africa                  22,210    22,725    22,852    22,957
    Asia Pacific             40,840    41,901    42,908    43,308
                           --------  --------  --------  --------  -------- 
      Total Company         109,388   111,298   113,644   115,166
                           ========  ========  ========  ========  ======== 

                                            Fiscal 2013
                           -------------------------------------------- 
                              Q1        Q2        Q3      Q4     TOTAL
                           --------  --------  ------- ------- -------- 
REVENUES
  New software licenses
   and cloud software
   subscriptions           $  1,574  $  2,389                  $  3,963 
  Software license updates
   and product support        4,140     4,260                     8,400 
                           --------  --------  ------- ------- -------- 
    Software Revenues         5,714     6,649                    12,363 

  Hardware systems
   products                     779       734                     1,513 
  Hardware systems support      574       587                     1,161 
                           --------  --------  ------- ------- -------- 
    Hardware Systems
     Revenues                 1,353     1,321                     2,674 

    Services Revenues         1,114     1,124                     2,238 

                           --------  --------  ------- ------- -------- 
      Total Revenues       $  8,181  $  9,094                  $ 17,275 
                           ========  ========  ======= ======= ======== 

AS REPORTED REVENUE GROWTH
 RATES
  New software licenses
   and cloud software
   subscriptions                 5%       17%                       12% 
  Software license updates
   and product support           3%        7%                        5% 
    Software Revenues            4%       10%                        7% 

  Hardware systems
   products                    (24%)     (23%)                     (24%)
  Hardware systems support     (11%)      (6%)                      (9%)
    Hardware Systems
     Revenues                  (19%)     (16%)                     (18%)

    Services Revenues           (6%)      (5%)                      (5%)

      Total Revenues            (2%)       3%                        1% 

CONSTANT CURRENCY GROWTH
 RATES (2)
  New software licenses
   and cloud software
   subscriptions                10%       18%                       14% 
  Software license updates
   and product support           8%        8%                        8% 
    Software Revenues            9%       11%                       10% 

  Hardware systems
   products                    (21%)     (23%)                     (22%)
  Hardware systems support      (6%)      (5%)                      (6%)
    Hardware Systems
     Revenues                  (15%)     (16%)                     (15%)

    Services Revenues            0%       (3%)                      (2%)

      Total Revenues             3%        5%                        4% 

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

GEOGRAPHIC REVENUES

  REVENUES
    Americas               $  4,324  $  4,787                  $  9,111 
    Europe, Middle East &
     Africa                   2,383     2,701                     5,084 
    Asia Pacific              1,474     1,606                     3,080 
                           --------  --------  ------- ------- -------- 
      Total Revenues       $  8,181  $  9,094                  $ 17,275 
                           ========  ========  ======= ======= ======== 

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

HEADCOUNT

  GEOGRAPHIC AREA
    Americas                 49,145    49,584
    Europe, Middle East &
     Africa                  22,584    22,594
    Asia Pacific             44,170    45,051
                           --------  --------  ------- ------- -------- 
      Total Company         115,899   117,229
                           ========  ========  ======= ======= ======== 

(1) The sum of the quarterly financial information may vary from year-to-
    date financial information due to rounding.
(2) We compare the percent change in the results from one period to another 
    period using constant currency disclosure. We present constant currency 
    information to provide a framework for assessing how our underlying
    businesses performed excluding the effect of foreign currency rate
    fluctuations. To present this information, current and comparative prior
    period results for entities reporting in currencies other than United
    States dollars are converted into United States dollars at the exchange 
    rates in effect on May 31, 2012 and 2011 for the fiscal 2013 and fiscal 
    2012 constant currency growth rate calculations presented, respectively,
    rather than the actual exchange rates in effect during the respective
    periods.

                             ORACLE CORPORATION
                      Q2 FISCAL 2013 FINANCIAL RESULTS
                SUPPLEMENTAL GEOGRAPHIC REVENUES ANALYSIS (1)
                               ($ in millions)

                                              Fiscal 2012
                           ------------------------------------------------ 
                              Q1        Q2        Q3        Q4       TOTAL
                           --------  --------  --------  --------  -------- 

AMERICAS

  New software licenses
   and cloud software
   subscriptions           $    727  $  1,027  $  1,228  $  2,126  $  5,107 
                           ========  ========  ========  ========  ======== 
  Hardware systems
   products                $    475  $    496  $    410  $    498  $  1,880 
                           ========  ========  ========  ========  ======== 

AS REPORTED GROWTH RATES
  New software licenses
   and cloud software
   subscriptions                10%        0%       11%       14%       10% 
  Hardware systems
   products                    (12%)     (17%)     (19%)     (17%)     (16%)

CONSTANT CURRENCY GROWTH
 RATES (2)
  New software licenses
   and cloud software
   subscriptions                 9%        1%       11%       16%       11% 
  Hardware systems
   products                    (13%)     (17%)     (18%)     (16%)     (16%)

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

EUROPE / MIDDLE EAST /
 AFRICA

  New software licenses
   and cloud software
   subscriptions           $    440  $    584  $    693  $  1,166  $  2,884 
                           ========  ========  ========  ========  ======== 
  Hardware systems
   products                $    344  $    272  $    265  $    260  $  1,140 
                           ========  ========  ========  ========  ======== 

AS REPORTED GROWTH RATES
  New software licenses
   and cloud software
   subscriptions                25%        2%       (1%)      (5%)       1% 
  Hardware systems
   products                      2%      (17%)     (20%)     (24%)     (15%)

CONSTANT CURRENCY GROWTH
 RATES (2)
  New software licenses
   and cloud software
   subscriptions                15%        3%        1%        2%        4% 
  Hardware systems
   products                    (11%)     (17%)     (18%)     (18%)     (16%)

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

ASIA PACIFIC

  New software licenses
   and cloud software
   subscriptions           $    331  $    437  $    453  $    693  $  1,915 
                           ========  ========  ========  ========  ======== 
  Hardware systems
   products                $    210  $    185  $    194  $    219  $    807 
                           ========  ========  ========  ========  ======== 

AS REPORTED GROWTH RATES
  New software licenses
   and cloud software
   subscriptions                20%       11%       13%        8%       12% 
  Hardware systems
   products                      6%        2%       (3%)       1%        1% 

CONSTANT CURRENCY GROWTH
 RATES (2)
  New software licenses
   and cloud software
   subscriptions                 9%        8%       11%       13%       11% 
  Hardware systems
   products                     (5%)      (1%)      (6%)       1%       (3%)

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

TOTAL COMPANY

  New software licenses
   and cloud software
   subscriptions           $  1,498  $  2,048  $  2,374  $  3,985  $  9,906 
                           ========  ========  ========  ========  ======== 
  Hardware systems
   products                $  1,029  $    953  $    869  $    977  $  3,827 
                           ========  ========  ========  ========  ======== 

AS REPORTED GROWTH RATES
  New software licenses
   and cloud software
   subscriptions                17%        2%        7%        7%        7% 
  Hardware systems
   products                     (5%)     (14%)     (16%)     (16%)     (13%)

CONSTANT CURRENCY GROWTH
 RATES (2)
  New software licenses
   and cloud software
   subscriptions                11%        3%        8%       11%        8% 
  Hardware systems
   products                    (11%)     (14%)     (16%)     (13%)     (14%)

                                            Fiscal 2013
                           -------------------------------------------- 
                              Q1        Q2        Q3      Q4     TOTAL
                           --------  --------  ------- ------- -------- 

AMERICAS

  New software licenses
   and cloud software
   subscriptions           $    814  $  1,253                  $  2,066 
                           ========  ========  ======= ======= ======== 
  Hardware systems
   products                $    380  $    370                  $    750 
                           ========  ========  ======= ======= ======== 

AS REPORTED GROWTH RATES
  New software licenses
   and cloud software
   subscriptions                12%       22%                       18% 
  Hardware systems
   products                    (20%)     (25%)                     (23%)

CONSTANT CURRENCY GROWTH
 RATES (2)
  New software licenses
   and cloud software
   subscriptions                14%       22%                       19% 
  Hardware systems
   products                    (19%)     (25%)                     (22%)

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

EUROPE / MIDDLE EAST /
 AFRICA

  New software licenses
   and cloud software
   subscriptions           $    403  $    641                  $  1,044 
                           ========  ========  ======= ======= ======== 
  Hardware systems
   products                $    214  $    198                  $    413 
                           ========  ========  ======= ======= ======== 

AS REPORTED GROWTH RATES
  New software licenses
   and cloud software
   subscriptions                (8%)      10%                        2% 
  Hardware systems
   products                    (38%)     (27%)                     (33%)

CONSTANT CURRENCY GROWTH
 RATES (2)
  New software licenses
   and cloud software
   subscriptions                 1%       12%                        8% 
  Hardware systems
   products                    (30%)     (25%)                     (28%)

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

ASIA PACIFIC

  New software licenses
   and cloud software
   subscriptions           $    357  $    495                  $    853 
                           ========  ========  ======= ======= ======== 
  Hardware systems
   products                $    185  $    166                  $    350 
                           ========  ========  ======= ======= ======== 

AS REPORTED GROWTH RATES
  New software licenses
   and cloud software
   subscriptions                 8%       13%                       11% 
  Hardware systems
   products                    (12%)     (10%)                     (11%)

CONSTANT CURRENCY GROWTH
 RATES (2)
  New software licenses
   and cloud software
   subscriptions                12%       13%                       13% 
  Hardware systems
   products                    (10%)     (12%)                     (11%)

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

TOTAL COMPANY

  New software licenses
   and cloud software
   subscriptions           $  1,574  $  2,389                  $  3,963 
                           ========  ========  ======= ======= ======== 
  Hardware systems
   products                $    779  $    734                  $  1,513 
                           ========  ========  ======= ======= ======== 

AS REPORTED GROWTH RATES
  New software licenses
   and cloud software
   subscriptions                 5%       17%                       12% 
  Hardware systems
   products                    (24%)     (23%)                     (24%)

CONSTANT CURRENCY GROWTH
 RATES (2)
  New software licenses
   and cloud software
   subscriptions                10%       18%                       14% 
  Hardware systems
   products                    (21%)     (23%)                     (22%)

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

(2) We compare the percent change in the results from one period to another 
    period using constant currency disclosure. We present constant currency 
    information to provide a framework for assessing how our underlying
    businesses performed excluding the effect of foreign currency rate
    fluctuations. To present this information, current and comparative prior
    period results for entities reporting in currencies other than United
    States dollars are converted into United States dollars at the exchange 
    rates in effect on May 31, 2012 and 2011 for the fiscal 2013 and fiscal 
    2012 constant currency growth rate calculations presented, respectively,
    rather than the actual exchange rates in effect during the respective
    periods.

                                                                  APPENDIX A

                             ORACLE CORPORATION
                      Q2 FISCAL 2013 FINANCIAL RESULTS
                      EXPLANATION OF NON-GAAP MEASURES

    
To supplement our financial results presented on a GAAP basis, we use
the non-GAAP measures indicated in the tables, which exclude certain
business combination accounting entries and expenses related to
acquisitions, as well as other significant expenses including stock-based
compensation, that we believe are helpful in understanding our past
financial performance and our future results. Our non-GAAP financial
measures are not meant to be considered in isolation or as a substitute
for comparable GAAP measures and should be read only in conjunction with
our consolidated financial statements prepared in accordance with GAAP.
Our management regularly uses our supplemental non-GAAP financial
measures internally to understand, manage and evaluate our business and
make operating decisions. These non-GAAP measures are among the primary
factors management uses in planning for and forecasting future periods.
Compensation of our executives is based in part on the performance of our
business based on these non-GAAP measures. Our non-GAAP financial
measures reflect adjustments based on the following items, as well as the
related income tax effects:


--  New software licenses and cloud software subscriptions, software
    license updates and product support and hardware systems support
    deferred revenues: Business combination accounting rules require us to
    account for the fair values of cloud software subscriptions contracts,
    software license updates and product support contracts and hardware
    systems support contracts assumed in connection with our acquisitions.
    Because these contracts are generally one year in duration, our GAAP
    revenues generally for the one year period subsequent to our
    acquisition of a business do not reflect the full amount of revenues
    on these assumed cloud software subscriptions contracts and support
    contracts that would have otherwise been recorded by the acquired
    entity. The non-GAAP adjustment to our new software licenses and cloud
    software subscriptions revenues, software license updates and product
    support revenues and hardware systems support revenues is intended to
    include, and thus reflect, the full amount of such revenues. We
    believe the adjustment to these revenues is useful to investors as a
    measure of the ongoing performance of our business. We have
    historically experienced high renewal rates on our software license
    updates and product support contracts and our objective is to increase
    the renewal rates on acquired and new cloud software subscriptions and
    hardware systems support contracts; however, we cannot be certain that
    our customers will renew our cloud software subscriptions contracts,
    software license updates and product support contracts or our hardware
    systems support contracts.
    
    
--  Stock-based compensation expenses: We have excluded the effect of
    stock-based compensation expenses from our non-GAAP operating expenses
    and net income measures. Although stock-based compensation is a key
    incentive offered to our employees, and we believe such compensation
    contributed to the revenues earned during the periods presented and
    also believe it will contribute to the generation of future period
    revenues, we continue to evaluate our business performance excluding
    stock-based compensation expenses. Stock-based compensation expenses
    will recur in future periods.
    
    
--  Amortization of intangible assets: We have excluded the effect of
    amortization of intangible assets from our non-GAAP operating expenses
    and net income measures. Amortization of intangible assets is
    inconsistent in amount and frequency and is significantly affected by
    the timing and size of our acquisitions. Investors should note that
    the use of intangible assets contributed to our revenues earned during
    the periods presented and will contribute to our future period
    revenues as well. Amortization of intangible assets will recur in
    future periods.
    
    
--  Acquisition related and other expenses; and restructuring expenses: We
    have excluded the effect of acquisition related and other expenses and
    the effect of restructuring expenses from our non-GAAP operating
    expenses and net income measures. We incurred significant expenses in
    connection with our acquisitions and also incurred certain other
    operating expenses or income, which we generally would not have
    otherwise incurred in the periods presented as a part of our
    continuing operations. Acquisition related and other expenses consist
    of personnel related costs for transitional employees, other acquired
    employee related costs, stock-based compensation expenses (in addition
    to the stock-based compensation expenses described above), integration
    related professional services, certain business combination
    adjustments including adjustments after the measurement period has
    ended and changes in fair value of contingent consideration payable,
    and certain other operating expenses, net. Substantially all of the
    stock-based compensation expenses included in acquisition related and
    other expenses resulted from unvested options assumed in acquisitions
    whose vesting was fully accelerated upon termination of the employees
    pursuant to the original terms of those options. Restructuring
    expenses consist of employee severance and other exit costs. We
    believe it is useful for investors to understand the effects of these
    items on our total operating expenses. Although acquisition related
    expenses and restructuring expenses generally diminish over time with
    respect to past acquisitions, we generally will incur these expenses
    in connection with any future acquisitions.

    



Contact:
Ken Bond
Oracle Investor Relations
1.650.607.0349
ken.bond@oracle.com

Deborah Hellinger
Oracle Corporate Communications
1.212.508.7935
deborah.hellinger@oracle.com 

Copyright 2012, Marketwire, All rights reserved.

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