Oracle Press Release
ORACLE REPORTS Q4 GAAP EPS OF $0.46, NON-GAAP EPS $0.60

GAAP Revenue Up 39%, GAAP Net Income Up 25%, Non-GAAP Net Income Up 31%

REDWOOD SHORES, Calif., June 24, 2010
Oracle Corporation (NASDAQ: ORCL) today announced fiscal 2010 Q4 GAAP total revenues were up 39% to $9.5 billion, while non-GAAP total revenues were up 40% to $9.6 billion. GAAP new software license revenues were up 14% to $3.1 billion. GAAP software license updates and product support revenues were up 12% to $3.4 billion, while non-GAAP software license updates and product support revenues were up 13% to $3.5 billion. GAAP operating income was up 14% to $3.3 billion, and GAAP operating margin was 35%. Non-GAAP operating income was up 26% to $4.4 billion, and non-GAAP operating margin was 46%. GAAP net income was up 25% to $2.4 billion, while non-GAAP net income was up 31% to $3.0 billion. GAAP earnings per share were $0.46, up 24% compared to last year while non-GAAP earnings per share were up 30% to $0.60. GAAP operating cash flow on a trailing twelve-month basis was $8.7 billion. Oracle estimates that in Q4 of fiscal 2010, Sun reduced GAAP operating income by approximately $100 million, including $176 million of amortization, and contributed approximately $400 million to non-GAAP operating income.

For fiscal year 2010, GAAP total revenues were up 15% to $26.8 billion, while non-GAAP total revenues were up 15% to $27.0 billion. Fiscal year 2010 GAAP new software license revenues were up 6% to $7.5 billion. GAAP software license updates and product support revenues were up 11% to $13.1 billion, while non-GAAP software license updates and product support revenues were up 10% to $13.2 billion. GAAP operating income was up 9% to $9.1 billion, and GAAP operating margin was 34%. Non-GAAP operating income was up 15% to $12.5 billion, and non-GAAP operating margin was 46%. GAAP net income was up 10% to $6.1 billion, while non-GAAP net income was up 15% to $8.5 billion. GAAP earnings per share were $1.21, up 11% compared to last year while non-GAAP earnings per share were up 16% to $1.67.

"We executed better than expected on both the top and bottom line for the quarter,” said Oracle CFO, Jeff Epstein. “This strong performance plus disciplined business management led to a non-GAAP operating margin of 46% in Q4, fully including the $1.2 billion of Sun systems hardware that we sold in the quarter.”

“We estimate that Sun contributed over $400 million to non-GAAP operating income in our Q4,” said Oracle President, Safra Catz. “This compares with a loss in Sun’s quarter ending June of last year, when Sun was an independent company. Now that Sun is profitable, we have increased confidence that we will meet or exceed our goal of Sun contributing $1.5 billion to non-GAAP operating income in FY2011, and $2.0 billion in FY2012.”

“We continue to take large chunks of market share away from SAP,” said Oracle President, Charles Phillips. “Over the last twelve months Oracle’s applications business has grown 5% on a constant dollar basis while SAP’s business has declined 24% over their previous four quarters. This trend has been going on for a long time: Oracle’s applications business has grown 60% in the last four years while SAP’s business is 7% smaller than it was four years ago.”

“Version 2 of our Sun Exadata database machine outperforms IBM’s fastest computer in both data warehousing and transaction processing,” said Oracle CEO, Larry Ellison. “As a result, some of IBM’s largest customers began buying Exadata machines rather than big IBM servers in Q4 of FY2010. And the FY2011 Exadata sales pipeline is fast approaching the $1 billion mark.”

In addition, Oracle’s Board of Directors declared a cash dividend of $0.05 per share of outstanding common stock to be paid to stockholders of record as of the close of business on July 14, 2010, with a payment date of August 4, 2010. Future declarations of quarterly dividends and the establishment of future record and payment dates are subject to the final determination of Oracle’s Board of Directors.

The estimate of the Sun contribution to operating income referred to above includes allocations of general and administrative expenses and other costs which cannot be directly identified as a result of the integration of the Sun and Oracle businesses to date. For additional information, please see footnote 8 in the Reconciliation of Selected GAAP Measures to non-GAAP Measures. Additional reconciliations can be found in the attached tables and at www.oracle.com/investors.

Q4 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 (866) 288-9872 or (913) 312-2900, Passcode: 911443. To access the live web broadcast of this event, please visit the Oracle Investor Relations website at http://www.oracle.com/investor.

About Oracle

Oracle (NASDAQ: ORCL) is the world’s most complete, open, and integrated business software and hardware systems company. For more information about Oracle, please visit our website at http://www.oracle.com or call Investor Relations at (650) 506-4073.

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“Safe Harbor” Statement: Statements in this press release relating to Oracle's or its Board of Directors’ future plans, expectations, beliefs, intentions and prospects are "forward-looking statements" and are subject to material risks and uncertainties. Many factors could affect our current expectations and our actual results, and could cause actual results to differ materially. We presently consider the following to be among the important factors that could cause actual results to differ materially from expectations: (1) Economic, political and market conditions, including the recent recession and global economic 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 entrance into the hardware systems business may not be successful, and we may fail to achieve our financial forecasts with respect to this new business. (4) We have an active acquisition program and our acquisitions, including our acquisition of Sun Microsystems, 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 or hardware systems products or purchase or renew support contracts. A detailed discussion of these factors and other risks that affect our business is contained in our SEC filings, including our most recent reports on Form 10-K and Form 10-Q, particularly under the heading "Risk Factors." Copies of these filings are available online from the SEC or by contacting Oracle Corporation's Investor Relations Department at (650) 506-4073 or by clicking on SEC Filings on Oracle’s Investor Relations website at http://www.oracle.com/investor. All information set forth in this press release is current as of June 24, 2010. Oracle undertakes no duty to update any statement in light of new information or future events.
Contact Info


Ken Bond
Oracle
+1.650.607.0349
ken.bond@oracle.com

Karen Tillman
Oracle Corporate Communications
+1.650.607.0326
karen.tillman@oracle.com












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