Oracle Reports Q3 GAAP EPS Up 6% to 52 Cents; Q3 Non-GAAP EPS Up 5% to 65 Cents

Wed Mar 20, 2013 4:01pm EDT

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

  REDWOOD SHORES, CA, Mar 20 (Marketwire) -- 
Oracle Corporation (NASDAQ: ORCL) today announced that fiscal 2013 Q3
total revenues were down 1% to $9.0 billion. New software licenses and
cloud software subscriptions revenues were down 2% to $2.3 billion.
Software license updates and product support revenues were up 7% to $4.3
billion. Hardware systems products revenues were $671 million. GAAP
operating income was up 1% to $3.3 billion, and GAAP operating margin was
37%. Non-GAAP operating income was down 1% to $4.2 billion, and non-GAAP
operating margin was 47%. GAAP net income was unchanged at $2.5 billion,
while non-GAAP net income was down 1% to $3.1 billion. GAAP earnings per
share were $0.52, up 6% compared to last year while non-GAAP earnings per
share were up 5% to $0.65. GAAP operating cash flow on a trailing
twelve-month basis was $13.7 billion. 

    Without the impact of the US dollar strengthening compared to foreign
currencies, Oracle's reported Q3 GAAP earnings per share would have been
$0.01 higher at $0.53, up 8%, and Q3 non-GAAP earnings per share would
have been approximately $0.01 higher. Total revenues also would have been
1% higher and new software licenses and cloud software subscription
revenues would have been 2% higher than reported. 

    "Our non-GAAP operating margin increased to a Q3 record of 47%, and we
expect it to reach an all-time high for the fiscal year," said Oracle
President and CFO, Safra Catz. "Both operating cash flow and free cash
flow were at record levels for a Q3, with operating cash flow of $13.7
billion over the last twelve months." 

    "The Oracle Cloud is the most robust and comprehensive cloud platform
available with services at the infrastructure (IaaS), platform (PaaS) and
application (SaaS) level," said Oracle President, Mark Hurd. "In Q3, our
SaaS revenue alone grew well over 100% as lots of new customers adopted
our Sales, Service, Marketing and Human Capital Management applications
in the Cloud." 

    "This month we will begin deliveries of servers based on our new SPARC T5
microprocessor: the fastest microprocessor in the world," said Oracle
CEO, Larry Ellison. "The new T5 servers can have up to eight
microprocessors while our new M5 system can be configured with up to
thirty-two microprocessors. The M5 runs the Oracle database 10 times
faster than the M9000 it replaces." 

    Q3 Fiscal 2013 Earnings Conference Call and Webcast
 Oracle will hold a
conference call and webcast today to discuss these results at 2:00 p.m.
Pacific. You may listen to the call by dialing (913) 312-6699, Passcode:
591704. 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 Q3 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: 1437646.

    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 non-GAAP operating margin reaching an
all-time high for the fiscal year, the deliveries of servers based on our
new SPARC T5 microprocessor and the configurations of the SPARC T5
servers and M5 systems, 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 March 20, 2013. Oracle undertakes no duty to
update any statement in light of new information or future events.

                            ORACLE CORPORATION

                     Q3 FISCAL 2013 FINANCIAL RESULTS
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                  ($ in millions, except per share data)

                           Three Months Ended
                  ------------------------------------
                                                                      %
                                                                   Increase
                                                            %     (Decrease)
                                                        Increase      in
                                                       (Decrease)  Constant
                  February   % of    February   % of     in US     Currency
                  28, 2013 Revenues  29, 2012 Revenues      $        (1)
                  -------- --------  -------- --------  --------  --------
REVENUES
  New software
   licenses and
   cloud software
   subscriptions  $  2,332       26% $  2,374       26%       (2%)       0% 
  Software license
   updates and
   product support   4,340       48%    4,051       45%        7%        8% 
                  -------- --------  -------- --------
    Software
     Revenues        6,672       74%    6,425       71%        4%        5% 
                  -------- --------  -------- --------
  Hardware systems
   products            671        8%      869       10%      (23%)     (22%)
  Hardware systems
   support             570        6%      604        6%       (6%)      (5%)
                  -------- --------  -------- --------
    Hardware
     Systems
     Revenues        1,241       14%    1,473       16%      (16%)     (15%)
                  -------- --------  -------- --------
    Services
     Revenues        1,045       12%    1,141       13%       (8%)      (7%)
                  -------- --------  -------- --------

      Total
       Revenues      8,958      100%    9,039      100%       (1%)       0% 
                  -------- --------  -------- --------

OPERATING EXPENSES
  Sales and
   marketing         1,802       20%    1,700       19%        6%        7% 
  Software license
   updates and
   product support     306        3%      305        3%        1%        2% 
  Hardware systems
   products            337        4%      424        5%      (21%)     (20%)
  Hardware systems
   support             219        2%      257        3%      (15%)     (14%)
  Services             854       10%      922       10%       (7%)      (6%)
  Research and
   development       1,186       13%    1,145       13%        4%        4% 
  General and
   administrative      260        3%      261        3%        0%        1% 
  Amortization of
   intangible
   assets              586        7%      606        7%       (3%)      (3%)
  Acquisition
   related and
   other                32        0%       38        0%      (16%)     (17%)
  Restructuring         42        1%       64        0%      (35%)     (36%)
                  -------- --------  -------- --------

      Total
       Operating
       Expenses      5,624       63%    5,722       63%       (2%)      (1%)
                  -------- --------  -------- --------

OPERATING INCOME     3,334       37%    3,317       37%        1%        2% 
  Interest expense    (205)      (2%)    (190)      (2%)       8%        8% 
  Non-operating
   (expense)
   income, net         (39)      (1%)      21        0%      284%      298% 
                  -------- --------  -------- --------

INCOME BEFORE
 PROVISION FOR
 INCOME TAXES        3,090       34%    3,148       35%       (2%)       0% 
                  -------- --------  -------- --------
  Provision for
   income taxes        586        6%      650        7%      (10%)      (8%)
                  -------- --------  -------- --------

NET INCOME        $  2,504       28% $  2,498       28%        0%        2% 
                  ======== ========  ======== ========

EARNINGS PER
 SHARE:
  Basic           $   0.53           $   0.50
  Diluted         $   0.52           $   0.49

WEIGHTED AVERAGE
 COMMON SHARES
 OUTSTANDING:
  Basic              4,735              5,007
  Diluted            4,812              5,080

(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 February 28, 2013
    compared with the corresponding prior year period decreased our revenues
    by 1 percentage point, operating expenses by 1 percentage point and
    operating income by 1 percentage point.

                             ORACLE CORPORATION

                      Q3 FISCAL 2013 FINANCIAL RESULTS
      RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1)
                   ($ in millions, except per share data)

                                     Three Months Ended
                  --------------------------------------------------------

                   February          February   February          February
                   28, 2013          28, 2013   29, 2012          29, 2012
                     GAAP     Adj.   Non-GAAP     GAAP     Adj.   Non-GAAP
                  ---------  -----  ---------  ---------  -----  ---------

TOTAL REVENUES (3)
 (4) (5)          $   8,958  $  12  $   8,970  $   9,039  $  23  $   9,062

TOTAL SOFTWARE
 REVENUES (3) (4) $   6,672  $  10  $   6,682  $   6,425  $  17  $   6,442
  New software
   licenses and
   cloud software
   subscriptions
   (3)                2,332      6      2,338      2,374      -      2,374
  Software license
   updates and
   product support
   (4)                4,340      4      4,344      4,051     17      4,068

TOTAL HARDWARE
 SYSTEMS REVENUES
 (5)              $   1,241  $   2  $   1,243  $   1,473  $   6  $   1,479
  Hardware systems
   products             671      -        671        869      -        869
  Hardware systems
   support (5)          570      2        572        604      6        610

TOTAL OPERATING
 EXPENSES         $   5,624  $(832) $   4,792  $   5,722  $(865) $   4,857
  Stock-based
   compensation
   (6)                  172   (172)         -        157   (157)         -
  Amortization of
   intangible
   assets (7)           586   (586)         -        606   (606)         -
  Acquisition
   related and
   other                 32    (32)         -         38    (38)         -
  Restructuring          42    (42)         -         64    (64)         -

OPERATING INCOME  $   3,334  $ 844  $   4,178  $   3,317  $ 888  $   4,205

OPERATING MARGIN %       37%               47%        37%               46% 

INCOME TAX EFFECTS
 (8)              $     586  $ 240  $     826  $     650  $ 258  $     908

NET INCOME        $   2,504  $ 604  $   3,108  $   2,498  $ 630  $   3,128

DILUTED EARNINGS
 PER SHARE        $    0.52         $    0.65  $    0.49         $    0.62

DILUTED WEIGHTED
 AVERAGE COMMON
 SHARES
 OUTSTANDING          4,812      -      4,812      5,080      -      5,080

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

                     GAAP       Non-GAAP       GAAP       Non-GAAP
                  ----------   ----------   ----------   ----------

TOTAL REVENUES (3)
 (4) (5)                  (1%)         (1%)          0%           0% 

TOTAL SOFTWARE
 REVENUES (3) (4)          4%           4%           5%           5% 
  New software
   licenses and
   cloud software
   subscriptions
   (3)                    (2%)         (2%)          0%           0% 
  Software license
   updates and
   product support
   (4)                     7%           7%           8%           8% 

TOTAL HARDWARE
 SYSTEMS REVENUES
 (5)                     (16%)        (16%)        (15%)        (15%)
  Hardware systems
   products              (23%)        (23%)        (22%)        (22%)
  Hardware systems
   support (5)            (6%)         (6%)         (5%)         (5%)

TOTAL OPERATING
 EXPENSES                 (2%)         (1%)         (1%)          0% 
  Stock-based
   compensation
   (6)                     9%           *            9%           *
  Amortization of
   intangible
   assets (7)             (3%)          *           (3%)          *
  Acquisition
   related and
   other                 (16%)          *          (17%)          *
  Restructuring          (35%)          *          (36%)          *

OPERATING INCOME           1%          (1%)          2%           0% 

OPERATING MARGIN %    52 bp.       17 bp.       65 bp.       17 bp.

INCOME TAX EFFECTS
 (8)                     (10%)         (9%)         (8%)         (8%)

NET INCOME                 0%          (1%)          2%           1% 

DILUTED EARNINGS
 PER SHARE                 6%           5%           8%           6% 

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 February 28, 2013, approximately $7 million and $6 million in
    estimated revenues related to assumed cloud software subscriptions
    contracts will not be recognized for the remainder of fiscal 2013 and
    fiscal 2014, respectively, due to business combination accounting rules.

(4) As of February 28, 2013, approximately $3 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 February 28, 2013, approximately $2 million in estimated revenues 
    related to hardware systems support contracts will not be recognized for
    each of the remainder of fiscal 2013 and fiscal 2014 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
                            February 28, 2013          February 29, 2012
                       -------------------------- --------------------------
                         GAAP     Adj.   Non-GAAP   GAAP     Adj.   Non-GAAP
                       -------- -------  -------- -------- -------  --------
    Sales and
     marketing         $     32 $   (32) $      - $     30 $   (30) $      -
    Software license
     updates and
     product support          5      (5)        -        5      (5)        -
    Hardware systems
     products                 1      (1)        -        -       -         -
    Hardware systems
     support                  1      (1)        -        1      (1)        -
    Services                  7      (7)        -        6      (6)        -
    Research and
     development             86     (86)        -       74     (74)        -
    General and
     administrative          40     (40)        -       41     (41)        -
                       -------- -------  -------- -------- -------  --------
      Subtotal              172    (172)        -      157    (157)        -
                       -------- -------  -------- -------- -------  --------
    Acquisition
     related and other        8      (8)        -       18     (18)        -
                       -------- -------  -------- -------- -------  --------
      Total stock-
       based
       compensation    $    180 $  (180) $      - $    175 $  (175) $      -
                       ======== =======  ======== ======== =======  ========

(7) Estimated future annual amortization expense related to intangible
    assets as of February 28, 2013 was as follows:

        Remainder of
         Fiscal 2013      $    582
        Fiscal 2014          2,043
        Fiscal 2015          1,582
        Fiscal 2016          1,020
        Fiscal 2017            450
        Fiscal 2018            324
        Thereafter             661
                          --------
        Total intangible
         assets, net      $  6,662
                          ========

(8) Income tax effects were calculated reflecting an effective GAAP tax rate
    of 19.0% and 20.7% in the third quarter of fiscal 2013 and 2012,
    respectively, and an effective non-GAAP tax rate of 21.0% and 22.5% in
    the third quarter of fiscal 2013 and 2012, respectively. The difference 
    between our GAAP and non-GAAP tax rates in the third 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,
    and the disproportionate rate impact of discrete items for the quarter. 
    The difference between our GAAP and non-GAAP tax rates in the third
    quarter of fiscal 2012 was primarily due to income tax effects related
    to acquired tax exposures, the differences in jurisdictional tax rates
    and related tax benefits attributable to our restructuring expenses, and
    the disproportionate rate impact of discrete items for the quarter.

*   Not meaningful

                             ORACLE CORPORATION

               Q3 FISCAL 2013 YEAR TO DATE FINANCIAL RESULTS
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                   ($ in millions, except per share data)

                            Nine Months Ended
                  ------------------------------------
                                                                      %
                                                                  Increase
                                                            %    (Decrease)
                                                        Increase     in
                                                       (Decrease) Constant
                  February   % of    February   % of     in US    Currency
                  28, 2013 Revenues  29, 2012 Revenues     $         (1)
                  -------- --------  -------- --------  --------  --------
REVENUES
 New software
  licenses and
  cloud software
  subscriptions   $  6,295       24% $  5,921       23%        6%        9% 
 Software license
  updates and
  product support   12,740       49%   12,058       46%        6%        8% 
                  -------- --------  -------- --------
  Software
   Revenues         19,035       73%   17,979       69%        6%        8% 
                  -------- --------  -------- --------
 Hardware systems
  products           2,185        8%    2,851       11%      (23%)     (22%)
 Hardware systems
  support            1,730        7%    1,874        7%       (8%)      (5%)
                  -------- --------  -------- --------
  Hardware Systems
   Revenues          3,915       15%    4,725       18%      (17%)     (15%)
                  -------- --------  -------- --------
  Services
   Revenues          3,283       12%    3,501       13%       (6%)      (3%)
                  -------- --------  -------- --------

   Total Revenues   26,233      100%   26,205      100%        0%        2% 
                  -------- --------  -------- --------
OPERATING EXPENSES
 Sales and
  marketing          5,120       19%    5,027       19%        2%        4% 
 Software license
  updates and
  product support      860        3%      899        3%       (4%)      (2%)
 Hardware systems
  products           1,087        4%    1,367        5%      (20%)     (19%)
 Hardware systems
  support              670        3%      798        3%      (16%)     (14%)
 Services            2,668       10%    2,788       11%       (4%)      (1%)
 Research and
  development        3,586       14%    3,297       13%        9%       10% 
 General and
  administrative       798        3%      848        3%       (6%)      (4%)
 Amortization of
  intangible
  assets             1,789        7%    1,790        7%        0%        0% 
 Acquisition
  related and
  other (2)           (347)      (1%)      63        0%     (652%)    (660%)
 Restructuring         318        1%      217        1%       46%       52% 
                  -------- --------  -------- --------

   Total Operating
    Expenses        16,549       63%   17,094       65%       (3%)      (1%)
                  -------- --------  -------- --------

OPERATING INCOME     9,684       37%    9,111       35%        6%       10% 
 Interest expense     (588)      (2%)    (574)      (2%)       2%        3% 
 Non-operating
  (expense)
  income, net          (24)       0%       42        0%      158%      166% 
                  -------- --------  -------- --------

INCOME BEFORE
 PROVISION FOR
 INCOME TAXES        9,072       35%    8,579       33%        6%        9% 
                  -------- --------  -------- --------
 Provision for
  income taxes       1,953        8%    2,050        8%       (5%)      (1%)
                  -------- --------  -------- --------

NET INCOME        $  7,119       27% $  6,529       25%        9%       13% 
                  ======== ========  ======== ========

EARNINGS PER
 SHARE:
 Basic            $   1.48           $   1.30
 Diluted          $   1.46           $   1.28

WEIGHTED AVERAGE
 COMMON SHARES
 OUTSTANDING:
 Basic               4,798              5,037
 Diluted             4,873              5,118

(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 nine months ended February 28, 2013 
    compared with the corresponding prior year period decreased our revenues
    by 2 percentage points, operating expenses by 2 percentage points and
    operating income by 4 percentage points.
(2) Acquisition related and other expenses for the nine months ended
    February 28, 2013 included a benefit of $306 million related to certain 
    litigation and a net benefit of $118 million due to an acquisition
    related item.

                             ORACLE CORPORATION

                Q3 FISCAL 2013 YEAR TO DATE FINANCIAL RESULTS
      RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1)
                   ($ in millions, except per share data)

                                      Nine Months Ended
                  --------------------------------------------------------

                  February           February  February           February
                  28, 2013           28, 2013  29, 2012           29, 2012
                    GAAP      Adj.   Non-GAAP    GAAP      Adj.   Non-GAAP
                  --------  -------  --------  --------  -------  --------

TOTAL REVENUES (3)
 (4) (5)          $ 26,233  $    59  $ 26,292  $ 26,205  $    66  $ 26,271

TOTAL SOFTWARE
 REVENUES (3) (4) $ 19,035  $    49  $ 19,084  $ 17,979  $    40  $ 18,019
  New software
   licenses and
   cloud software
   subscriptions
   (3)               6,295       37     6,332     5,921        -     5,921
  Software license
   updates and
   product support
   (4)              12,740       12    12,752    12,058       40    12,098

TOTAL HARDWARE
 SYSTEMS REVENUES
 (5)              $  3,915  $    10  $  3,925  $  4,725  $    26  $  4,751
  Hardware systems
   products          2,185        -     2,185     2,851        -     2,851
  Hardware systems
   support (5)       1,730       10     1,740     1,874       26     1,900

TOTAL OPERATING
 EXPENSES         $ 16,549  $(2,296) $ 14,253  $ 17,094  $(2,523) $ 14,571
  Stock-based
   compensation
   (6)                 536     (536)        -       453     (453)        -
  Amortization of
   intangible
   assets (7)        1,789   (1,789)        -     1,790   (1,790)        -
  Acquisition
   related and
   other              (347)     347         -        63      (63)        -
  Restructuring        318     (318)        -       217     (217)        -

OPERATING INCOME  $  9,684  $ 2,355  $ 12,039  $  9,111  $ 2,589  $ 11,700

OPERATING MARGIN %      37%                46%       35%                45% 

INCOME TAX EFFECTS
 (8)              $  1,953  $   630  $  2,583  $  2,050  $   740  $  2,790

NET INCOME        $  7,119  $ 1,725  $  8,844  $  6,529  $ 1,849  $  8,378

DILUTED EARNINGS
 PER SHARE        $   1.46           $   1.81  $   1.28           $   1.64

DILUTED WEIGHTED
 AVERAGE COMMON
 SHARES
 OUTSTANDING         4,873        -     4,873     5,118        -     5,118

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

                     GAAP      Non-GAAP      GAAP      Non-GAAP
                  ----------  ----------  ----------  ----------

TOTAL REVENUES (3)
 (4) (5)                   0%          0%          2%          2% 

TOTAL SOFTWARE
 REVENUES (3) (4)          6%          6%          8%          8% 
  New software
   licenses and
   cloud software
   subscriptions
   (3)                     6%          7%          9%          9% 
  Software license
   updates and
   product support
   (4)                     6%          5%          8%          8% 

TOTAL HARDWARE
 SYSTEMS REVENUES
 (5)                     (17%)       (17%)       (15%)       (16%)
  Hardware systems
   products              (23%)       (23%)       (22%)       (22%)
  Hardware systems
   support (5)            (8%)        (8%)        (5%)        (6%)

TOTAL OPERATING
 EXPENSES                 (3%)        (2%)        (1%)         0% 
  Stock-based
   compensation
   (6)                    18%          *          18%          *
  Amortization of
   intangible
   assets (7)              0%          *           0%          *
  Acquisition
   related and
   other                (652%)         *        (660%)         *
  Restructuring           46%          *          52%          *

OPERATING INCOME           6%          3%         10%          5% 

OPERATING MARGIN %   215 bp.     125 bp.     238 bp.     127 bp.

INCOME TAX EFFECTS
 (8)                      (5%)        (7%)        (1%)        (5%)

NET INCOME                 9%          6%         13%          8% 

DILUTED EARNINGS
 PER SHARE                15%         11%         18%         14% 

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 February 28, 2013, approximately $7 million and $6 million in
    estimated revenues related to assumed cloud software subscriptions
    contracts will not be recognized for the remainder of fiscal 2013 and
    fiscal 2014, respectively, due to business combination accounting rules.

(4) As of February 28, 2013, approximately $3 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 February 28, 2013, approximately $2 million in estimated revenues 
    related to hardware systems support contracts will not be recognized for
    each of the remainder of fiscal 2013 and fiscal 2014 due to business
    combination accounting rules.

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

                            Nine Months Ended          Nine Months Ended
                            February 28, 2013          February 29, 2012
                       -------------------------- --------------------------
                         GAAP     Adj.   Non-GAAP   GAAP     Adj.   Non-GAAP
                       -------- -------  -------- -------- -------  --------
    Sales and
     marketing         $    112 $  (112) $      - $     86 $   (86) $      -
    Software license
     updates and
     product support         15     (15)        -       13     (13)        -
    Hardware systems
     products                 2      (2)        -        1      (1)        -
    Hardware systems
     support                  3      (3)        -        4      (4)        -
    Services                 24     (24)        -       16     (16)        -
    Research and
     development            258    (258)        -      213    (213)        -
    General and
     administrative         122    (122)        -      120    (120)        -
                       -------- -------  -------- -------- -------  --------
      Subtotal              536    (536)        -      453    (453)        -
                       -------- -------  -------- -------- -------  --------
    Acquisition
     related and other       30     (30)        -       21     (21)        -
                       -------- -------  -------- -------- -------  --------
      Total stock-
       based
       compensation    $    566 $  (566) $      - $    474 $  (474) $      -
                       ======== =======  ======== ======== =======  ========

(7) Estimated future annual amortization expense related to intangible
    assets as of February 28, 2013 was as follows:

        Remainder of
         Fiscal 2013      $    582
        Fiscal 2014          2,043
        Fiscal 2015          1,582
        Fiscal 2016          1,020
        Fiscal 2017            450
        Fiscal 2018            324
        Thereafter             661
                          --------
          Total intangible
           assets, net    $  6,662
                          ========

(8) Income tax effects were calculated reflecting an effective GAAP tax rate
    of 21.5% and 23.9% in the first nine months of fiscal 2013 and 2012,
    respectively, and an effective non-GAAP tax rate of 22.6% and 25.0% in
    the first nine months of fiscal 2013 and 2012, respectively. The
    differences between our GAAP and non-GAAP tax rates in the first nine
    months of fiscal 2013 were primarily due to the net tax effects of
    acquisition related items, including the tax effect of amortization of
    intangible assets. The difference between our GAAP and non-GAAP tax
    rates in the first nine months of fiscal 2012 was primarily due to
    income tax effects related to acquired tax exposures, the differences in
    jurisdictional tax rates and related tax benefits attributable to our
    restructuring expenses, and the disproportionate rate impact of discrete
    items for the first nine months of fiscal 2012.

*   Not meaningful

                             ORACLE CORPORATION

                      Q3 FISCAL 2013 FINANCIAL RESULTS
                    CONDENSED CONSOLIDATED BALANCE SHEETS
                               ($ in millions)

                                                  February 28,    May 31,
                                                      2013          2012
                                                 ------------- -------------
ASSETS

Current Assets:
  Cash and cash equivalents                      $      16,101 $      14,955
  Marketable securities                                 17,306        15,721
  Trade receivables, net                                 4,169         6,377
  Inventories                                              211           158
  Deferred tax assets                                      829           877
  Prepaid expenses and other current assets              2,070         1,935
                                                 ------------- -------------
    Total Current Assets                                40,686        40,023

Non-Current Assets:
  Property, plant and equipment, net                     3,034         3,021
  Intangible assets, net                                 6,662         7,899
  Goodwill                                              26,102        25,119
  Deferred tax assets                                      651           595
  Other assets                                           2,315         1,670
                                                 ------------- -------------
    Total Non-Current Assets                            38,764        38,304
                                                 ------------- -------------

TOTAL ASSETS                                     $      79,450 $      78,327
                                                 ============= =============

LIABILITIES AND EQUITY

Current Liabilities:
  Notes payable, current and other current
   borrowings                                    $       1,250 $       2,950
  Accounts payable                                         361           438
  Accrued compensation and related benefits              1,557         2,002
  Deferred revenues                                      6,278         7,035
  Other current liabilities                              2,470         2,963
                                                 ------------- -------------
    Total Current Liabilities                           11,916        15,388

Non-Current Liabilities:
  Notes payable and other non-current borrowings        18,502        13,524
  Income taxes payable                                   3,775         3,759
  Other non-current liabilities                          1,467         1,569
                                                 ------------- -------------
    Total Non-Current Liabilities                       23,744        18,852

Equity                                                  43,790        44,087
                                                 ------------- -------------

TOTAL LIABILITIES AND EQUITY                     $      79,450 $      78,327
                                                 ============= =============

                             ORACLE CORPORATION

                      Q3 FISCAL 2013 FINANCIAL RESULTS
              CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                              ($ in millions)

                                                      Nine Months Ended
                                                 -------------------------- 
                                                 February 28,  February 29, 
                                                     2013          2012
                                                 ------------  ------------ 
Cash Flows From Operating Activities:
  Net income                                     $      7,119  $      6,529 
  Adjustments to reconcile net income to net
   cash provided by operating activities:
    Depreciation                                          400           350 
    Amortization of intangible assets                   1,789         1,790 
    Deferred income taxes                                 108          (200)
    Stock-based compensation                              566           474 
    Tax benefits on the exercise of stock
     options and vesting of restricted stock-
     based awards                                         372           123 
    Excess tax benefits on the exercise of stock
     options and vesting of restricted stock-
     based awards                                        (220)          (71)
    Other, net                                            120            67 
    Changes in operating assets and liabilities,
     net of effects from acquisitions:
      Decrease in trade receivables, net                2,269         2,028 
      (Increase) decrease in inventories                  (48)          139 
      (Increase) decrease in prepaid expenses
       and other assets                                  (241)           87 
      Decrease in accounts payable and other
       liabilities                                       (912)       (1,353)
      (Decrease) increase in income taxes
       payable                                           (853)          259 
      Decrease in deferred revenues                      (809)         (536)
                                                 ------------  ------------ 

        Net cash provided by operating
         activities                                     9,660         9,686 
                                                 ------------  ------------ 

Cash Flows From Investing Activities:
  Purchases of marketable securities and other
   investments                                        (24,027)      (29,745)
  Proceeds from maturities and sales of
   marketable securities and other investments         22,359        26,472 
  Acquisitions, net of cash acquired                   (1,592)       (2,833)
  Capital expenditures                                   (467)         (431)
                                                 ------------  ------------ 

        Net cash used for investing activities         (3,727)       (6,537)
                                                 ------------  ------------ 

Cash Flows From Financing Activities:
  Payments for repurchases of common stock             (8,204)       (3,457)
  Proceeds from issuances of common stock               1,300           513 
  Payments of dividends to stockholders                (1,433)         (909)
  Proceeds from borrowings, net of issuance
   costs                                                4,974             - 
  Repayments of borrowings                             (1,700)       (1,405)
  Excess tax benefits on the exercise of stock
   options and vesting of restricted stock-based
   awards                                                 220            71 
  Distributions to noncontrolling interests               (31)         (163)
                                                 ------------  ------------ 

        Net cash used for financing activities         (4,874)       (5,350)
                                                 ------------  ------------ 

Effect of exchange rate changes on cash and cash
 equivalents                                               87          (181)
                                                 ------------  ------------ 

Net increase (decrease) in cash and cash
 equivalents                                            1,146        (2,382)
                                                 ------------  ------------ 

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

Cash and cash equivalents at end of period       $     16,101  $     13,781 
                                                 ============  ============ 

                             ORACLE CORPORATION
                      Q3 FISCAL 2013 FINANCIAL RESULTS
                  FREE CASH FLOW - TRAILING 4-QUARTERS (1)
                               ($ in millions)

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

GAAP Operating
 Cash Flow      $12,818 $13,129 $13,463 $13,743 $13,993 $13,533 $13,717

Capital
 Expenditures
 (2)               (492)   (500)   (509)   (648)   (627)   (710)   (684)
                ------- ------- ------- ------- ------- ------- ------- ----

Free Cash Flow  $12,326 $12,629 $12,954 $13,095 $13,366 $12,823 $13,033
                ======= ======= ======= ======= ======= ======= ======= ====

% Growth over
 prior year          46%     45%     36%     22%      8%      2%      1%
                ------- ------- ------- ------- ------- ------- ------- ----

GAAP Net Income $ 9,035 $ 9,356 $ 9,738 $ 9,981 $10,175 $10,564 $10,571

Free Cash Flow
 as a % of Net
 Income             136%    135%    133%    131%    131%    121%    123%
                ------- ------- ------- ------- ------- ------- ------- ----

(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
                      Q3 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  $  2,332       $  6,295 
Software license updates
 and product support         4,140     4,260     4,340         12,740 
                          --------  --------  --------  ---- -------- 
    Software Revenues        5,714     6,649     6,672         19,035 

Hardware systems products      779       734       671          2,185 
Hardware systems support       574       587       570          1,730 
                          --------  --------  --------  ---- -------- 
    Hardware Systems
     Revenues                1,353     1,321     1,241          3,915 

    Services Revenues        1,114     1,124     1,045          3,283 

                          --------  --------  --------  ---- -------- 
      Total Revenues      $  8,181  $  9,094  $  8,958       $ 26,233 
                          ========  ========  ========  ==== ======== 

AS REPORTED REVENUE GROWTH
 RATES
New software licenses and
 cloud software
 subscriptions                  5%       17%       (2%)            6% 
Software license updates
 and product support            3%        7%        7%             6% 
  Software Revenues             4%       10%        4%             6% 

Hardware systems products     (24%)     (23%)     (23%)          (23%)
Hardware systems support      (11%)      (6%)      (6%)           (8%)
  Hardware Systems
   Revenues                   (19%)     (16%)     (16%)          (17%)

  Services Revenues            (6%)      (5%)      (8%)           (6%)

      Total Revenues           (2%)       3%       (1%)            0% 

CONSTANT CURRENCY GROWTH
 RATES (2)
New software licenses and
 cloud software
 subscriptions                 10%       18%        0%             9% 
Software license updates
 and product support            8%        8%        8%             8% 
    Software Revenues           9%       11%        5%             8% 

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

  Services Revenues             0%       (3%)      (7%)           (3%)

      Total Revenues            3%        5%        0%             2% 

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

GEOGRAPHIC REVENUES

REVENUES
  Americas                $  4,324  $  4,787  $  4,698       $ 13,808 
  Europe, Middle East &
   Africa                    2,383     2,701     2,745          7,829 
  Asia Pacific               1,474     1,606     1,515          4,596 
                          --------  --------  --------  ---- -------- 
      Total Revenues      $  8,181  $  9,094  $  8,958       $ 26,233 
                          ========  ========  ========  ==== ======== 

HEADCOUNT

GEOGRAPHIC AREA
  Americas                  49,145    49,584    50,402
  Europe, Middle East &
   Africa                   22,584    22,594    22,592
  Asia Pacific              44,170    45,051    45,663
                          --------  --------  --------  ---- -------- 
      Total Company        115,899   117,229   118,657
                          ========  ========  ========  ==== ======== 

(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
                       Q3 FISCAL 2013 FINANCIAL RESULTS
                SUPPLEMENTAL GEOGRAPHIC REVENUES ANALYSIS (1)
                                ($in millions)

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

AMERICAS

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

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

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

EUROPE / MIDDLE EAST / AFRICA

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

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

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

ASIA PACIFIC

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

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

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

TOTAL COMPANY

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

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

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

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

AMERICAS

  New software licenses and cloud
   software subscriptions           $  814  $1,253  $1,205       $3,271 
                                    ======  ======  ======  ==== ====== 
  Hardware systems products         $  380  $  370  $  307       $1,056 
                                    ======  ======  ======  ==== ====== 

AS REPORTED GROWTH RATES
  New software licenses and cloud
   software subscriptions              12%     22%     (2%)         10% 
  Hardware systems products           (20%)   (25%)   (25%)        (24%)

CONSTANT CURRENCY GROWTH RATES (2)
  New software licenses and cloud
   software subscriptions              14%     22%     (1%)         11% 
  Hardware systems products           (19%)   (25%)   (25%)        (23%)

EUROPE / MIDDLE EAST / AFRICA

  New software licenses and cloud
   software subscriptions           $  403  $  641  $  690       $1,734 
                                    ======  ======  ======  ==== ====== 
  Hardware systems products         $  214  $  198  $  201       $  615 
                                    ======  ======  ======  ==== ====== 

AS REPORTED GROWTH RATES
  New software licenses and cloud
   software subscriptions              (8%)    10%      0%           1% 
  Hardware systems products           (38%)   (27%)   (24%)        (30%)

CONSTANT CURRENCY GROWTH RATES (2)
  New software licenses and cloud
   software subscriptions               1%     12%      1%           5% 
  Hardware systems products           (30%)   (25%)   (24%)        (27%)

ASIA PACIFIC

  New software licenses and cloud
   software subscriptions           $  357  $  495  $  437       $1,290 
                                    ======  ======  ======  ==== ====== 
  Hardware systems products         $  185  $  166  $  163       $  514 
                                    ======  ======  ======  ==== ====== 

AS REPORTED GROWTH RATES
  New software licenses and cloud
   software subscriptions               8%     13%     (3%)          6% 
  Hardware systems products           (12%)   (10%)   (16%)        (13%)

CONSTANT CURRENCY GROWTH RATES (2)
  New software licenses and cloud
   software subscriptions              12%     13%      1%           8% 
  Hardware systems products           (10%)   (12%)   (14%)        (12%)

TOTAL COMPANY

  New software licenses and cloud
   software subscriptions           $1,574  $2,389  $2,332       $6,295 
                                    ======  ======  ======  ==== ====== 
  Hardware systems products         $  779  $  734  $  671       $2,185 
                                    ======  ======  ======  ==== ====== 

AS REPORTED GROWTH RATES
  New software licenses and cloud
   software subscriptions               5%     17%     (2%)          6% 
  Hardware systems products           (24%)   (23%)   (23%)        (23%)

CONSTANT CURRENCY GROWTH RATES (2)
  New software licenses and cloud
   software subscriptions              10%     18%      0%           9% 
  Hardware systems products           (21%)   (23%)   (22%)        (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
                      Q3 FISCAL 2013 FINANCIAL RESULTS
                      EXPLANATION OF NON-GAAP MEASURES


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


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

    



Contact: 

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


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

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