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.
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