ORACLE REPORTS Q4 GAAP EPS OF 38 CENTS, NON-GAAP EPS OF 46 CENTS
Q4 GAAP Operating Margin Up to 42%; Non-GAAP Operating Margin Up to a Record 51%
Redwood Shores, CA – June 23, 2009
Oracle Corporation (NASDAQ: ORCL) today announced that fiscal 2009 Q4 GAAP earnings per share were $0.38, down 4% compared to last year. Oracle’s Q4 results were impacted by the reduced value of foreign currencies when compared to US dollars. Without this impact, Oracle’s Q4 GAAP earnings per share would have been up 9% to $0.42. Fourth quarter GAAP total revenues were down 5% to $6.9 billion, while quarterly GAAP net income was down 7% to $1.9 billion. GAAP new software license revenues were down 13% to $2.7 billion. GAAP software license updates and product support revenues were up 8% to $3.1 billion. GAAP operating income was down 3% to $2.9 billion, and GAAP operating margin was up 100 basis points to 42%. GAAP operating cash flow on a trailing twelve-month basis was $8.3 billion, up 12%.
Fourth quarter non-GAAP earnings per share were down 1% to $0.46. Without the $0.05 per share impact of the reduced value of foreign currencies when compared to US dollars, Oracle’s Q4 non-GAAP earnings per share would have been up 9% to $0.51. Non-GAAP total revenues were down 5% to $6.9 billion, while non-GAAP net income was down 5% to $2.3 billion, compared to the same quarter last year. Non-GAAP operating income was down 1% to $3.5 billion and non-GAAP operating margin was up 240 basis points to 51%.
For fiscal year 2009, GAAP earnings per share were up 3% to $1.09. Oracle’s fiscal year 2009 results were impacted by the reduced value of foreign currencies when compared to US dollars, reducing fiscal year 2009 GAAP earnings by $0.11 per share. Without this impact, our fiscal year 2009 GAAP earnings per share would have been up 13% to $1.20. Fiscal year 2009 GAAP revenues were up 4% to $23.3 billion, while annual GAAP net income was up 1% to $5.6 billion. Total GAAP new software license revenues for the year were down 5% to $7.1 billion. GAAP software license updates and product support revenues were up 14% to $11.8 billion. GAAP operating income was up 6% to $8.3 billion, and GAAP operating margins were up 80 basis points to 36% in fiscal year 2009.
Fiscal year 2009 non-GAAP earnings per share were up 11% year over year to $1.44. Without the $0.11 per share impact of the reduced value of foreign currencies when compared to US dollars, Oracle’s fiscal year 2009 non-GAAP earnings per share would have been up 19% to $1.55. Annual non-GAAP revenues were up 4% to $23.5 billion, while annual non-GAAP net income was up 9% to $7.4 billion compared to fiscal year 2008. Total non-GAAP new software license revenues for the year were down 5% to $7.1 billion. Non-GAAP software license updates and product support revenues were up 14% to $12.0 billion. Non-GAAP operating income was up 12% to $10.9 billion, and non-GAAP operating margins were up 350 basis points to 46%.
In addition, Oracle’s Board of Directors declared a cash dividend of $0.05 per share of outstanding common stock to be paid to shareholders of record as of the close of business on July 15, 2009, with a payment date of August 13, 2009. 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.
“Adjusted for the substantial movement in the US dollar exchange rate this fiscal year, which is beyond our control, we grew non-GAAP earnings per share by 19 percent for the year,” said Oracle President Safra Catz. “That’s an amazing achievement given what’s been happening in the global economy over the past twelve months.”
“We executed substantially better than we expected on both the top and bottom line for the quarter,” said Oracle CFO Jeff Epstein. “We grew Q4 non-GAAP operating margins by a faster than expected 240 basis points to over 51 percent. That helped us generate $7.7 billion in free cash flow for fiscal 2009.”
“We grew faster and took market share from SAP in every region around the world,” said Oracle President Charles Phillips. “In Europe our applications business grew 5 percent in constant currency versus negative 27 percent growth for SAP in their most recent quarter. Historically Europe has been an SAP stronghold, but these results prove that we can compete and beat them everywhere.”
“The Exadata Database Machine is well on its way to being the most successful new product launch in Oracle’s 30 year history,” said Oracle CEO Larry Ellison. “Several of Teradata’s largest customers are performance testing -- then buying -- Oracle Exadata Database Machines. In a recent competitive benchmark, a Teradata machine took over six hours to process a query that our Exadata Database Machine ran in less than 30 minutes. They bought Exadata.”
Q4 Earnings Conference Call and Webcast
Oracle will hold a conference call and web broadcast today to discuss these results at 2:00 p.m. (PDT) / 5:00 p.m. (EDT). You may listen to the call by dialing (866) 237-3252 or (719) 457-1018, Passcode: 617178. To access the live web broadcast of this event, please visit the Oracle Investor Relations website at http://www.oracle.com/investor. Please hold down your control key while pressing refresh to ensure that the web link is visible.
Supplemental Financial Tables
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"Safe Harbor" Statement:
Statements in this press release relating to Oracle's or its Board of Directors’ future plans, 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 global economic and financial crisis, could adversely affect our business, operating results or financial condition, including our revenue growth and profitability, through reductions in customer IT budgets and expenditures and through the general tightening of access to credit. (2) We may fail to achieve our financial forecasts due to such factors as delays or size reductions in transactions, fewer large transactions in a particular quarter, unanticipated fluctuations in currency exchange rates, delays in delivery of new products or releases or a decline in our renewal rates for software license updates and product support. (3) We cannot assure market acceptance of new products or services or new versions of existing or acquired products or services. (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) Periodic changes to our pricing model and sales organization could temporarily disrupt operations and cause a decline or delay in sales. (6) Intense competitive forces demand rapid technological advances and frequent new product introductions and could require us to reduce prices or cause us to lose customers. 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 release is current as of June 23, 2009. Oracle undertakes no duty to update any statement in light of new information or future events.
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