8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): September 16, 2010

Oracle Corporation

(Exact name of registrant as specified in its charter)

Delaware	000-51788	54-2185193
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

500 Oracle Parkway, Redwood City, California 94065

(Address of principal executive offices) (Zip Code)

(650) 506-7000

(Registrant’s telephone number, including area code)

N/A

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS

EXHIBIT 99.1

Section 2—Financial Information

Item 2.02 Results of Operations and Financial Condition

On September 16, 2010, Oracle Corporation issued a press release announcing financial results for its fiscal first quarter ended August 31, 2010. A copy of this press release is furnished as Exhibit 99.1 to this report.

Section 8—Other Events

Item 8.01 Other Events

Oracle is hereby furnishing the following information:

Oracle announced that its Board of Directors has declared a cash dividend of $0.05 per share of outstanding common stock payable on November 3, 2010, to stockholders of record as of the close of business on October 6, 2010.

Oracle’s press release dated September 16, 2010, announcing this cash dividend is furnished as Exhibit 99.1 to this report and is incorporated by reference herein.

Section 9—Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits

(d) Exhibits

Exhibit No.	Description of Exhibit
99.1	Press Release dated September 16, 2010

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	ORACLE CORPORATION
Dated: September 16, 2010	By:	/s/ WILLIAM COREY WEST
		William Corey West
		Senior Vice President, Corporate Controller and Chief Accounting Officer

EXHIBIT LIST

Exhibit No.	Description of Exhibit
99.1	Press Release dated September 16, 2010

EX-99.1

Exhibit 99.1

For Immediate Release

Contact: Ken Bond Oracle Investor Relations 1.650.607.0349 ken.bond@oracle.com Karen Tillman Oracle Corporate Communications 1.650.607.0326 karen.tillman@oracle.com

ORACLE REPORTS Q1 GAAP EPS UP 20% TO 27 CENTS; NON-GAAP EPS UP 38% TO 42 CENTS

Software New License Sales Up 25%, Total GAAP Revenue Up 48%

REDWOOD SHORES, Calif., September 16, 2010 — Oracle Corporation (NASDAQ: ORCL) today announced fiscal 2011 Q1 GAAP total revenues were up 48% to $7.5 billion, while non-GAAP total revenues were up 50% to $7.6 billion. GAAP new software license revenues were up 25% to $1.3 billion. Both the GAAP and non-GAAP software license updates and product support revenues were up 11% to $3.5 billion. GAAP operating income was up 10% to $1.9 billion, and GAAP operating margin was 26%. Non-GAAP operating income was up 27% to $2.9 billion, and non-GAAP operating margin was 39%. GAAP net income was up 20% to $1.4 billion, while non-GAAP net income was up 38% to $2.1 billion. GAAP earnings per share were $0.27, up 20% compared to last year while non-GAAP earnings per share were up 38% to $0.42. GAAP operating cash flow on a trailing twelve-month basis was $8.8 billion.

“We executed better than expected on both the top and bottom line for the quarter,” said Oracle CFO, Jeff Epstein. “Strong revenue performance plus disciplined business management enabled a 38% increase in non-GAAP earnings per share to $0.42.”

“Our software business grew strongly in all regions with new license sales up 25%,” said Oracle President, Safra Catz. “Our hardware business also grew faster than we expected with Sun Solaris servers and Exadata leading the way.”

“Next week at Oracle OpenWorld we will announce two new high-end systems that combine Sun hardware with Oracle software,” said Oracle President, Mark Hurd. “We will invest over $4 billion in research and development this year, so our already robust product portfolio is only going to get stronger.”

“Our Exadata database machine continued to win new customers in Q1,” said Oracle CEO, Larry Ellison. “The worldwide Exadata pipeline now exceeds $1.5 billion for the full fiscal year.”

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 October 6, 2010, with a payment date of November 3, 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.

Q1 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 (800) 214-0745 or (913) 643-0950, Passcode: 804992. To access the live webcast 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.

# # #

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 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 September 16, 2010. Oracle undertakes no duty to update any statement in light of new information or future events.

ORACLE CORPORATION

Q1 FISCAL 2011 FINANCIAL RESULTS

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

($ in millions, except per share data)

	Three Months Ended August 31,						% Increase in US $	% Increase in Constant Currency (1)
	2010		% of Revenues	2009		% of Revenues
REVENUES
New software licenses	$	1,286	17%	$	1,028	20%	25%	25%
Software license updates and product support		3,450	46%		3,117	62%	11%	12%
Software Revenues		4,736	63%		4,145	82%	14%	15%
Hardware systems products		1,079	15%		—	0%	*	*
Hardware systems support		619	8%		—	0%	*	*
Hardware Systems Revenues		1,698	23%		—	0%	*	*
Services		1,068	14%		909	18%	18%	18%
Total Revenues		7,502	100%		5,054	100%	48%	49%
OPERATING EXPENSES
Sales and marketing		1,333	18%		960	19%	39%	40%
Software license updates and product support		308	4%		226	4%	36%	37%
Hardware systems products		557	7%		—	0%	*	*
Hardware systems support		301	4%		—	0%	*	*
Services		896	12%		782	16%	15%	16%
Research and development		1,103	15%		660	13%	67%	67%
General and administrative		272	4%		201	4%	36%	36%
Amortization of intangible assets		603	8%		431	9%	40%	40%
Acquisition related and other		83	1%		6	0%	1,356%	1,095%
Restructuring		129	1%		48	1%	168%	176%
Total Operating Expenses		5,585	74%		3,314	66%	69%	69%
OPERATING INCOME		1,917	26%		1,740	34%	10%	11%
Interest expense		(196)	(3%)		(179)	(3%)	9%	9%
Non-operating income, net		74	1%		1	0%	*	*
INCOME BEFORE PROVISION FOR INCOME TAXES		1,795	24%		1,562	31%	15%	16%
Provision for income taxes		443	6%		438	9%	1%	2%
NET INCOME	$	1,352	18%	$	1,124	22%	20%	21%
EARNINGS PER SHARE:
Basic	$	0.27		$	0.22
Diluted	$	0.27		$	0.22
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic		5,026			5,009
Diluted		5,083			5,063

(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, 2010, 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 August 31, 2010 compared with the corresponding prior year period decreased our revenues and operating income, each by 1 percentage point.

* Not meaningful

1

ORACLE CORPORATION

Q1 FISCAL 2011 FINANCIAL RESULTS

RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1)

($ in millions, except per share data)

	Three Months Ended August 31,												% Increase (Decrease) in US $		% Increase (Decrease) in Constant Currency (2)
	2010				2010		2009				2009		GAAP	Non-GAAP	GAAP	Non-GAAP
	GAAP		Adj.		Non-GAAP		GAAP		Adj.		Non-GAAP
TOTAL REVENUES (3) (4)	$	7,502	$	86	$	7,588	$	5,054	$	9	$	5,063	48%	50%	49%	51%
TOTAL SOFTWARE REVENUES (3)	$	4,736	$	25	$	4,761	$	4,145	$	9	$	4,154	14%	15%	15%	16%
New software licenses		1,286		—		1,286		1,028		—		1,028	25%	25%	25%	25%
Software license updates and product support (3)		3,450		25		3,475		3,117		9		3,126	11%	11%	12%	12%
TOTAL HARDWARE SYSTEMS REVENUES (4)	$	1,698	$	61	$	1,759	$	—	$	—	$	—	*	*	*	*
Hardware systems products		1,079		—		1,079		—		—		—	*	*	*	*
Hardware systems support (4)		619		61		680		—		—		—	*	*	*	*
TOTAL OPERATING EXPENSES	$	5,585	$	(944)	$	4,641	$	3,314	$	(569)	$	2,745	69%	69%	69%	70%
Stock-based compensation (5)		129		(129)		—		84		(84)		—	54%	*	54%	*
Amortization of intangible assets (6)		603		(603)		—		431		(431)		—	40%	*	40%	*
Acquisition related and other		83		(83)		—		6		(6)		—	1,356%	*	1,095%	*
Restructuring		129		(129)		—		48		(48)		—	168%	*	176%	*
OPERATING INCOME	$	1,917	$	1,030	$	2,947	$	1,740	$	578	$	2,318	10%	27%	11%	28%
OPERATING MARGIN %		26%				39%		34%				46%	(888) bp	(694) bp	(881) bp	(693) bp
INCOME TAX EFFECTS (7)	$	443	$	253	$	696	$	438	$	162	$	600	1%	16%	2%	17%
NET INCOME	$	1,352	$	777	$	2,129	$	1,124	$	416	$	1,540	20%	38%	21%	39%
DILUTED EARNINGS PER SHARE	$	0.27			$	0.42	$	0.22			$	0.30	20%	38%	21%	39%
DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING		5,083		—		5,083		5,063		—		5,063	0%	0%	0%	0%

(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, 2010, 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 August 31, 2010, approximately $46 million, $19 million and $7 million in estimated revenues related to assumed software support contracts will not be recognized for the remainder of fiscal 2011, fiscal 2012 and fiscal 2013, respectively, due to business combination accounting rules.

(4) As of August 31, 2010, approximately $87 million, $35 million and $11 million in estimated revenues related to hardware systems support contracts will not be recognized for the remainder of fiscal 2011, fiscal 2012 and fiscal 2013, respectively, due to business combination accounting rules.

(5) Stock-based compensation is included in the following GAAP operating expense categories:

	Three Months Ended							Three Months Ended
	August 31, 2010							August 31, 2009
	GAAP		Adj.			Non-GAAP		GAAP		Adj.			Non-GAAP
Sales and marketing	$	23	$	(23	)	$	—	$	16	$	(16	)	$	—
Software license updates and product support		5		(5	)		—		4		(4	)		—
Hardware systems products		1		(1	)		—		—		—			—
Hardware systems support		1		(1	)		—		—		—			—
Services		4		(4	)		—		3		(3	)		—
Research and development		59		(59	)		—		32		(32	)		—
General and administrative		36		(36	)		—		29		(29	)		—
Subtotal		129		(129	)		—		84		(84	)		—
Acquisition related and other		1		(1	)		—		—		—			—
Total stock-based compensation	$	130	$	(130	)	$	—	$	84	$	(84	)	$	—

(6) Estimated future annual amortization expense related to intangible assets as of August 31, 2010 is as follows:

Remainder of Fiscal 2011	$	1,740
Fiscal 2012		2,074
Fiscal 2013		1,705
Fiscal 2014		1,408
Fiscal 2015		1,058
Fiscal 2016		575
Thereafter		190
Total intangible assets subject to amortization		8,750
In-process research and development		374
Total intangible assets, net	$	9,124

(7) Income tax effects were calculated reflecting an effective GAAP and non-GAAP tax rate of 24.7% and 28.0% in the first quarter of fiscal 2011 and 2010, respectively.

* Not meaningful

2

ORACLE CORPORATION

Q1 FISCAL 2011 FINANCIAL RESULTS

CONDENSED CONSOLIDATED BALANCE SHEETS

($ in millions)

	August 31, 2010		May 31, 2010
ASSETS
Current Assets:
Cash and cash equivalents	$	12,018	$	9,914
Marketable securities		11,619		8,555
Trade receivables, net		3,721		5,585
Inventories		235		259
Deferred tax assets		1,142		1,159
Prepaid expenses and other current assets		1,529		1,532
Total Current Assets		30,264		27,004
Non-Current Assets:
Property, plant and equipment, net		2,835		2,763
Intangible assets, net		9,124		9,321
Goodwill		20,901		20,425
Deferred tax assets		1,119		1,267
Other assets		1,012		798
Total Non-Current Assets		34,991		34,574
TOTAL ASSETS	$	65,255	$	61,578
LIABILITIES AND EQUITY
Current Liabilities:
Notes payable, current and other current borrowings	$	2,260	$	3,145
Accounts payable		706		775
Accrued compensation and related benefits		1,438		1,895
Deferred revenues		6,903		5,900
Other current liabilities		2,493		2,976
Total Current Liabilities		13,800		14,691
Non-Current Liabilities:
Notes payable and other non-current borrowings		14,778		11,510
Income taxes payable		2,679		2,695
Deferred tax liabilities		349		424
Other non-current liabilities		1,137		1,059
Total Non-Current Liabilities		18,943		15,688
Equity		32,512		31,199
TOTAL LIABILITIES AND EQUITY	$	65,255	$	61,578

3

ORACLE CORPORATION

Q1 FISCAL 2011 FINANCIAL RESULTS

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

($ in millions)

	Three Months Ended August 31,
	2010			2009
Cash Flows From Operating Activities:
Net income	$	1,352		$	1,124
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		99			61
Amortization of intangible assets		603			431
Deferred income taxes		(15	)		(75	)
Stock-based compensation		130			84
Tax benefits on the exercise of stock options and vesting of restricted stock-based awards		24			51
Excess tax benefits on the exercise of stock options and vesting of restricted stock-based awards		(10	)		(30	)
Other, net		26			40
Changes in operating assets and liabilities, net of effects from acquisitions:
Decrease in trade receivables, net		1,942			1,870
Decrease in inventories		11			—
Decrease in prepaid expenses and other assets		348			251
Decrease in accounts payable and other liabilities		(898	)		(642	)
Decrease in income taxes payable		(529	)		(9	)
Increase in deferred revenues		734			582
Net cash provided by operating activities		3,817			3,738
Cash Flows From Investing Activities:
Purchases of marketable securities and other investments		(7,650	)		(2,760	)
Proceeds from maturities and sales of marketable securities and other investments		4,684			1,947
Acquisitions, net of cash acquired		(832	)		(79	)
Capital expenditures		(118	)		(55	)
Net cash used for investing activities		(3,916	)		(947	)
Cash Flows From Financing Activities:
Payments for repurchases of common stock		(249	)		(244	)
Proceeds from issuances of common stock		169			247
Payment of dividends to stockholders		(251	)		(251	)
Proceeds from borrowings, net of issuance costs		3,204			4,461
Repayments of borrowings		(885	)		—
Excess tax benefits on the exercise of stock options and vesting of restricted stock-based awards		10			30
Distributions to noncontrolling interests		(38	)		(34	)
Net cash provided by financing activities		1,960			4,209
Effect of exchange rate changes on cash and cash equivalents		243			103
Net increase in cash and cash equivalents		2,104			7,103
Cash and cash equivalents at beginning of period		9,914			8,995
Cash and cash equivalents at end of period	$	12,018		$	16,098

4

ORACLE CORPORATION

Q1 FISCAL 2011 FINANCIAL RESULTS

FREE CASH FLOW—TRAILING 4-QUARTERS (1)

($ in millions)

	Fiscal 2010												Fiscal 2011
	Q1			Q2			Q3			Q4			Q1			Q2	Q3	Q4
GAAP Operating Cash Flow	$	8,753		$	8,654		$	8,178		$	8,681		$	8,760
Capital Expenditures (2)		(261	)		(230	)		(199	)		(230	)		(293	)
Free Cash Flow	$	8,492		$	8,424		$	7,979		$	8,451		$	8,467
% Growth over prior year		14	%		11	%		0	%		9	%		0	%
GAAP Net Income	$	5,640		$	5,802		$	5,663		$	6,135		$	6,363
Free Cash Flow as a % of Net Income		151	%		145	%		141	%		138	%		133	%

(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.

5

ORACLE CORPORATION

Q1 FISCAL 2011 FINANCIAL RESULTS

SUPPLEMENTAL ANALYSIS OF GAAP REVENUES AND HEADCOUNT (1)

($ in millions)

	Fiscal 2010															Fiscal 2011
	Q1			Q2			Q3			Q4			TOTAL			Q1		Q2	Q3	Q4	TOTAL
REVENUES
New software licenses	$	1,028		$	1,653		$	1,718		$	3,135		$	7,533		$	1,286				$	1,286
Software license updates and product support		3,117			3,247			3,297			3,431			13,092			3,450					3,450
Software Revenues		4,145			4,900			5,015			6,566			20,625			4,736					4,736
Hardware systems products		—			—			273			1,233			1,506			1,079					1,079
Hardware systems support		—			—			185			598			784			619					619
Hardware Systems Revenues		—			—			458			1,831			2,290			1,698					1,698
Consulting		663			692			651			713			2,720			666					666
On Demand		180			188			211			295			874			321					321
Education		66			78			69			100			311			81					81
Services Revenues		909			958			931			1,108			3,905			1,068					1,068
Total Revenues	$	5,054		$	5,858		$	6,404		$	9,505		$	26,820		$	7,502				$	7,502
AS REPORTED REVENUE GROWTH RATES
New software licenses		(17%	)		2%			13%			14%			6%			25%					25%
Software license updates and product support		6%			14%			13%			12%			11%			11%					11%
Software Revenues		(1%	)		9%			13%			13%			9%			14%					14%
Hardware systems products		*			*			*			*			*			*					*
Hardware systems support		*			*			*			*			*			*					*
Hardware Systems Revenues		*			*			*			*			*			*					*
Consulting		(23%	)		(18%	)		(14%	)		(9%	)		(16%	)		0%					0%
On Demand		(8%	)		(1%	)		10%			45%			12%			78%					78%
Education		(34%	)		(22%	)		(4%	)		26%			(11%	)		24%					24%
Services Revenues		(22%	)		(15%	)		(9%	)		4%			(11%	)		18%					18%
Total Revenues		(5%	)		4%			17%			39%			15%			48%					48%
CONSTANT CURRENCY GROWTH RATES (2)
New software licenses		(14%	)		(5%	)		8%			15%			4%			25%					25%
Software license updates and product support		11%			9%			8%			11%			10%			12%					12%
Software Revenues		4%			4%			8%			13%			8%			15%					15%
Hardware systems products		*			*			*			*			*			*					*
Hardware systems support		*			*			*			*			*			*					*
Hardware Systems Revenues		*			*			*			*			*			*					*
Consulting		(19%	)		(22%	)		(18%	)		(10%	)		(17%	)		1%					1%
On Demand		(3%	)		(4%	)		6%			44%			11%			80%					80%
Education		(30%	)		(26%	)		(8%	)		24%			(12%	)		24%					24%
Services Revenues		(18%	)		(19%	)		(13%	)		3%			(12%	)		18%					18%
Total Revenues		(1%	)		0%			12%			38%			14%			49%					49%
GEOGRAPHIC REVENUES
REVENUES
Americas	$	2,671		$	2,979		$	3,284		$	4,886		$	13,819		$	3,904				$	3,904
Europe, Middle East & Africa		1,642			1,976			2,167			3,153			8,938			2,381					2,381
Asia Pacific		741			903			953			1,466			4,063			1,217					1,217
Total Revenues	$	5,054		$	5,858		$	6,404		$	9,505		$	26,820		$	7,502				$	7,502
HEADCOUNT
GEOGRAPHIC AREA
Americas		32,034			31,849			44,554			43,968						44,494					44,494
Europe, Middle East & Africa		16,839			16,491			23,566			23,040						22,886					22,886
Asia Pacific		35,766			35,026			38,372			37,561						37,856					37,856
Total Company		84,639			83,366			106,492			104,569						105,236					105,236

(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, 2010 and 2009 for the fiscal 2011 and fiscal 2010 constant currency growth rate calculations presented, respectively, rather than the actual exchange rates in effect during the respective periods.

* Not meaningful

6

ORACLE CORPORATION

Q1 FISCAL 2011 FINANCIAL RESULTS

SUPPLEMENTAL TOTAL SOFTWARE PRODUCT REVENUE ANALYSIS (1)

($ in millions)

	Fiscal 2010															Fiscal 2011
	Q1			Q2			Q3			Q4			TOTAL			Q1			Q2	Q3	Q4	TOTAL
SOFTWARE REVENUES
DATABASE & MIDDLEWARE REVENUES
New software licenses	$	711		$	1,175		$	1,241		$	2,280		$	5,406		$	937					$	937
Software license updates and product support		2,065			2,131			2,191			2,309			8,696			2,316						2,316
Database and Middleware Revenues	$	2,776		$	3,306		$	3,432		$	4,589		$	14,102		$	3,253					$	3,253
AS REPORTED GROWTH RATES
New software licenses		(22	%)		1	%		11	%		18	%		6	%		32	%					32%
Software license updates and product support		9	%		16	%		14	%		15	%		14	%		12	%					12%
Database and Middleware Revenues		(1	%)		10	%		13	%		16	%		10	%		17	%					17%
CONSTANT CURRENCY GROWTH RATES (2)
New software licenses		(19	%)		(5	%)		5	%		18	%		4	%		32	%					32%
Software license updates and product support		14	%		12	%		9	%		13	%		12	%		13	%					13%
Database and Middleware Revenues		4	%		5	%		8	%		16	%		9	%		18	%					18%
APPLICATIONS REVENUES
New software licenses	$	317		$	478		$	477		$	855		$	2,127		$	349					$	349
Software license updates and product support		1,052			1,116			1,106			1,122			4,396			1,134						1,134
Applications Revenues	$	1,369		$	1,594		$	1,583		$	1,977		$	6,523		$	1,483					$	1,483
AS REPORTED GROWTH RATES
New software licenses		(4	%)		2	%		21	%		6	%		6	%		10	%					10%
Software license updates and product support		1	%		10	%		10	%		8	%		7	%		8	%					8%
Applications Revenues		0	%		7	%		13	%		7	%		7	%		8	%					8%
CONSTANT CURRENCY GROWTH RATES (2)
New software licenses		0	%		(3	%)		15	%		7	%		5	%		10	%					10%
Software license updates and product support		6	%		6	%		5	%		6	%		6	%		9	%					9%
Applications Revenues		4	%		3	%		8	%		6	%		5	%		9	%					9%

(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, 2010 and 2009 for the fiscal 2011 and fiscal 2010 constant currency growth rate calculations presented, respectively, rather than the actual exchange rates in effect during the respective periods.

7

ORACLE CORPORATION

Q1 FISCAL 2011 FINANCIAL RESULTS

SUPPLEMENTAL GEOGRAPHIC NEW SOFTWARE LICENSE AND HARDWARE SYSTEMS PRODUCTS REVENUES ANALYSIS (1)

($ in millions)

	Fiscal 2010															Fiscal 2011
	Q1			Q2			Q3			Q4			TOTAL			Q1			Q2	Q3	Q4	TOTAL
AMERICAS
Database & Middleware	$	310		$	492		$	540		$	1,123		$	2,465		$	446					$	446
Applications		185			286			283			485			1,239			212						212
New Software License Revenues	$	495		$	778		$	823		$	1,608		$	3,704		$	658					$	658
Hardware Systems Products Revenues	$	—		$	—		$	131		$	617		$	747		$	543					$	543
AS REPORTED GROWTH RATES
Database & Middleware		(12	%)		4	%		20	%		34	%		17	%		44	%					44%
Applications		2	%		2	%		26	%		16	%		12	%		14	%					14%
New Software License Revenues		(7	%)		4	%		22	%		28	%		15	%		33	%					33%
Hardware Systems Products Revenues		*			*			*			*			*			*						*
CONSTANT CURRENCY GROWTH RATES (2)
Database & Middleware		(11	%)		2	%		16	%		32	%		15	%		43	%					43%
Applications		6	%		1	%		23	%		15	%		11	%		14	%					14%
New Software License Revenues		(5	%)		1	%		18	%		26	%		14	%		32	%					32%
Hardware Systems Products Revenues		*			*			*			*			*			*						*
EUROPE / MIDDLE EAST / AFRICA
Database & Middleware	$	224		$	429		$	456		$	751		$	1,859		$	279					$	279
Applications		90			119			134			261			604			73						73
New Software License Revenues	$	314		$	548		$	590		$	1,012		$	2,463		$	352					$	352
Hardware Systems Products Revenues	$	—		$	—		$	95		$	390		$	485		$	338					$	338
AS REPORTED GROWTH RATES
Database & Middleware		(31	%)		(1	%)		2	%		(1	%)		(5	%)		25	%					25%
Applications		(5	%)		(6	%)		7	%		(7	%)		(4	%)		(19	%)					(19%)
New Software License Revenues		(25	%)		(2	%)		3	%		(3	%)		(5	%)		12	%					12%
Hardware Systems Products Revenues		*			*			*			*			*			*						*
CONSTANT CURRENCY GROWTH RATES (2)
Database & Middleware		(26	%)		(10	%)		(3	%)		6	%		(5	%)		32	%					32%
Applications		3	%		(14	%)		1	%		(2	%)		(3	%)		(16	%)					(16%)
New Software License Revenues		(20	%)		(11	%)		(2	%)		4	%		(4	%)		18	%					18%
Hardware Systems Products Revenues		*			*			*			*			*			*						*
ASIA PACIFIC
Database & Middleware	$	177		$	254		$	245		$	406		$	1,082		$	212					$	212
Applications		42			73			60			109			284			64						64
New Software License Revenues	$	219		$	327		$	305		$	515		$	1,366		$	276					$	276
Hardware Systems Products Revenues	$	—		$	—		$	47		$	226		$	274		$	198					$	198
AS REPORTED GROWTH RATES
Database & Middleware		(22	%)		0	%		9	%		19	%		3	%		19	%					19%
Applications		(24	%)		17	%		29	%		2	%		5	%		54	%					54%
New Software License Revenues		(22	%)		3	%		12	%		15	%		4	%		26	%					26%
Hardware Systems Products Revenues		*			*			*			*			*			*						*
CONSTANT CURRENCY GROWTH RATES (2)
Database & Middleware		(22	%)		(10	%)		1	%		14	%		(3	%)		13	%					13%
Applications		(23	%)		2	%		16	%		(3	%)		(2	%)		47	%					47%
New Software License Revenues		(22	%)		(8	%)		4	%		10	%		(3	%)		19	%					19%
Hardware Systems Products Revenues		*			*			*			*			*			*						*
TOTAL COMPANY
Database & Middleware	$	711		$	1,175		$	1,241		$	2,280		$	5,406		$	937					$	937
Applications		317			478			477			855			2,127			349						349
New Software License Revenues	$	1,028		$	1,653		$	1,718		$	3,135		$	7,533		$	1,286					$	1,286
Hardware Systems Products Revenues	$	—		$	—		$	273		$	1,233		$	1,506		$	1,079					$	1,079
AS REPORTED GROWTH RATES
Database & Middleware		(22	%)		1	%		11	%		18	%		6	%		32	%					32%
Applications		(4	%)		2	%		21	%		6	%		6	%		10	%					10%
New Software License Revenues		(17	%)		2	%		13	%		14	%		6	%		25	%					25%
Hardware Systems Products Revenues		*			*			*			*			*			*						*
CONSTANT CURRENCY GROWTH RATES (2)
Database & Middleware		(19	%)		(5	%)		5	%		18	%		4	%		32	%					32%
Applications		0	%		(3	%)		15	%		7	%		5	%		10	%					10%
New Software License Revenues		(14	%)		(5	%)		8	%		15	%		4	%		25	%					25%
Hardware Systems Products Revenues		*			*			*			*			*			*						*

(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, 2010 and 2009 for the fiscal 2011 and fiscal 2010 constant currency growth rate calculations presented, respectively, rather than the actual exchange rates in effect during the respective periods.

* Not meaningful

8

APPENDIX A

ORACLE CORPORATION

Q1 FISCAL 2011 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:

• 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 software license updates and product support contracts and hardware systems support contracts assumed in connection with our acquisitions. Because these support contracts are typically one year in duration, our GAAP revenues for the one year period subsequent to our acquisition of a business do not reflect the full amount of support revenues on these assumed support contracts that would have otherwise been recorded by the acquired entity. The non-GAAP adjustment to our 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 support 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 hardware systems support contracts; however, we cannot be certain that our customers will renew our 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 after the measurement period has ended 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.

9