EX-99.1 2 orcl-ex991_6.htm EX-99.1 orcl-ex991_6.htm

Exhibit 99.1

 

For Immediate Release

 

 

 

 

 

 

Contact:

  

Ken Bond

  

Deborah Hellinger

 

  

Oracle Investor Relations

  

Oracle Corporate Communications

 

  

1.650.607.0349

  

1.212.508.7935

 

  

ken.bond@oracle.com

  

deborah.hellinger@oracle.com

 

Q3 FY18 Cloud Revenues Up 32% to $1.6 Billion and Total Revenues Up 6% to $9.8 Billion

Q3 FY18 GAAP EPS ($0.98) Due to One-Time Charges Related to the 2017 Tax Cuts and Jobs Act

Q3 FY18 NON-GAAP EPS $0.83, Up 20%; Year-to-Date FY18 NON-GAAP EPS Up 16%

 

REDWOOD SHORES, Calif., March 19, 2018 -- Oracle Corporation (NYSE: ORCL) today announced fiscal 2018 Q3 results. Total Revenues were up 6% to $9.8 billion, compared to Q3 last year. Cloud and On-Premise Software Revenues were up 8% to $8.0 billion. Cloud Software as a Service (SaaS) revenues were up 33% to $1.2 billion. Cloud Platform as a Service (PaaS) plus Infrastructure as a Service (IaaS) revenues were up 28% to $415 million. Total Cloud Revenues were up 32% to $1.6 billion.

 

GAAP Operating Income was up 15% to $3.4 billion and GAAP Operating Margin was 35%. Non-GAAP Operating Income was up 9% to $4.3 billion and non-GAAP Operating Margin was 44%. GAAP Net Loss was $4.0 billion and GAAP Loss Per Share was $0.98 due to a one-time net charge totaling $6.9 billion related to the 2017 Tax Cuts and Jobs Act. Non-GAAP Net Income was up 21% to $3.5 billion and non-GAAP Earnings Per Share was up 20% to $0.83.

 

Short-term deferred revenues were up 8% to $8.0 billion. Operating cash flow on a trailing twelve-month basis was up 13% to $15.2 billion.

 

“During FY17, I forecast double-digit non-GAAP earnings per share growth for FY18,” said Oracle CEO, Safra Catz. “With non-GAAP earnings per share up 20% in Q3, our year-to-date earnings per share growth is now up to 16%. At this point, I feel quite confident that we will comfortably deliver on my original forecast of double-digit non-GAAP earnings per share growth for FY18.”

 

“Our Fusion ERP and HCM SaaS applications suite revenues grew 65% in the quarter,” said Oracle CEO, Mark Hurd. “Our Cloud SaaS applications business is rapidly approaching $5 billion…and it’s still early days.  Less than 15% of our on-premise applications customers have begun to migrate their applications to the cloud.  As the other 85% of our applications customers start to move their applications to the Cloud, we have a huge opportunity in front of us.  We expect to more than double the size of our SaaS business very quickly.”

 

“The Oracle autonomous database is now fully available in the Oracle Cloud,” said Oracle CTO, Larry Ellison. “And there are more autonomous cloud services to come. During this calendar year we expect to deliver Autonomous Analytics, Autonomous Mobility, Autonomous Application Development and Autonomous Integration services. Oracle’s new suite of Autonomous PaaS services delivers an unprecedented level of automation and cost savings to our customers.”

 

The Board of Directors also declared a quarterly cash dividend of $0.19 per share of outstanding common stock. This dividend will be paid to stockholders of record as of the close of business on April 17, 2018, with a payment date of May 1, 2018.


Q3 Fiscal 2018 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 (816) 287-5563, Passcode: 425392. To access the live webcast, please visit the Oracle Investor Relations website at http://www.oracle.com/investor. In addition, Oracle’s Q3 results and Fiscal 2018 financial tables are available on the Oracle Investor Relations website.

A replay of the conference call will also be available by dialing (855) 859-2056 or (404) 537-3406, Passcode: 1182679.

 

About Oracle

Oracle offers a comprehensive and fully integrated stack of cloud applications and platform services. For more information about Oracle (NYSE: ORCL), visit www.oracle.com/investor 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 the growth of our non-GAAP EPS, the potential to significantly increase the size of our SaaS business, and the delivery of our new autonomous products, are all "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) Our cloud computing strategy, including our Oracle Cloud SaaS, PaaS, IaaS and data as a service offerings, may not be successful. (2) 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. (3) If the security measures for our products and services are compromised or if our products and services contain significant coding, manufacturing or configuration errors, we may experience reputational harm, legal claims and reduced sales. (4) 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, fluctuations in currency exchange rates, delays in delivery of new products or releases or a decline in our renewal rates for support contracts. (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. (6) Economic, geopolitical and market conditions 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. (7) 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. A detailed discussion of these factors and other risks that affect our business is contained in our U.S. Securities and Exchange Commission (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 19, 2018. Oracle undertakes no duty to update any statement in light of new information or future events.


ORACLE CORPORATION

Q3 FISCAL 2018 FINANCIAL RESULTS

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

($ in millions, except per share data)

 

 

 

Three Months Ended February 28,

 

% Increase

 

% Increase

(Decrease)

 

 

 

2018

 

 

% of

Revenues

 

2017

 

 

% of

Revenues

 

(Decrease)

in US $

 

in Constant

Currency (1)

 

REVENUES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cloud software as a service

 

$

1,151

 

 

12%

 

$

865

 

 

9%

 

33%

 

31%

 

Cloud platform as a service and infrastructure as a service

 

 

415

 

 

4%

 

 

324

 

 

4%

 

28%

 

24%

 

Total cloud revenues

 

 

1,566

 

 

16%

 

 

1,189

 

 

13%

 

32%

 

29%

 

New software licenses

 

 

1,388

 

 

14%

 

 

1,414

 

 

15%

 

(2%)

 

(6%)

 

Software license updates and product support

 

 

5,027

 

 

52%

 

 

4,762

 

 

52%

 

6%

 

1%

 

Total on-premise software revenues

 

 

6,415

 

 

66%

 

 

6,176

 

 

67%

 

4%

 

0%

 

Total cloud and on-premise software revenues

 

 

7,981

 

 

82%

 

 

7,365

 

 

80%

 

8%

 

4%

 

Hardware revenues

 

 

994

 

 

10%

 

 

1,028

 

 

11%

 

(3%)

 

(7%)

 

Services revenues

 

 

796

 

 

8%

 

 

812

 

 

9%

 

(2%)

 

(6%)

 

Total revenues

 

 

9,771

 

 

100%

 

 

9,205

 

 

100%

 

6%

 

2%

 

OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cloud software as a service

 

 

398

 

 

4%

 

 

330

 

 

3%

 

20%

 

17%

 

Cloud platform as a service and infrastructure as a service

 

 

275

 

 

3%

 

 

175

 

 

2%

 

57%

 

54%

 

Software license updates and product support

 

 

223

 

 

2%

 

 

270

 

 

3%

 

(17%)

 

(20%)

 

Hardware

 

 

394

 

 

4%

 

 

437

 

 

5%

 

(10%)

 

(14%)

 

Services

 

 

712

 

 

7%

 

 

680

 

 

7%

 

5%

 

0%

 

Sales and marketing

 

 

2,033

 

 

21%

 

 

2,004

 

 

22%

 

1%

 

(2%)

 

Research and development

 

 

1,498

 

 

15%

 

 

1,521

 

 

17%

 

(2%)

 

(3%)

 

General and administrative

 

 

340

 

 

4%

 

 

241

 

 

3%

 

41%

 

37%

 

Amortization of intangible assets

 

 

394

 

 

4%

 

 

397

 

 

4%

 

(1%)

 

(1%)

 

Acquisition related and other

 

 

3

 

 

0%

 

 

30

 

 

0%

 

(89%)

 

(90%)

 

Restructuring

 

 

91

 

 

1%

 

 

161

 

 

2%

 

(43%)

 

(46%)

 

Total operating expenses

 

 

6,361

 

 

65%

 

 

6,246

 

 

68%

 

2%

 

(1%)

 

OPERATING INCOME

 

 

3,410

 

 

35%

 

 

2,959

 

 

32%

 

15%

 

9%

 

Interest expense

 

 

(533

)

 

(5%)

 

 

(450

)

 

(5%)

 

19%

 

18%

 

Non-operating income, net

 

 

423

 

 

4%

 

 

189

 

 

2%

 

123%

 

126%

 

INCOME BEFORE PROVISION FOR INCOME TAXES

 

 

3,300

 

 

34%

 

 

2,698

 

 

29%

 

22%

 

15%

 

Provision for income taxes (2)

 

 

7,324

 

 

75%

 

 

459

 

 

5%

 

1,495%

 

1,490%

 

NET INCOME (LOSS)

 

$

(4,024

)

 

(41%)

 

$

2,239

 

 

24%

 

(280%)

 

(280%)

 

EARNINGS (LOSS) PER SHARE:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.98

)

 

 

 

$

0.55

 

 

 

 

 

 

 

 

Diluted

 

$

(0.98

)

 

 

 

$

0.53

 

 

 

 

 

 

 

 

WEIGHTED AVERAGE COMMON STOCK OUTSTANDING:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

4,122

 

 

 

 

 

4,107

 

 

 

 

 

 

 

 

Diluted

 

 

4,122

 

 

 

 

 

4,204

 

 

 

 

 

 

 

 

 

 

(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, 2017, 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, 2018 compared with the corresponding prior year period increased our revenues by 4 percentage points, operating expenses by 3 percentage points and operating income by 6 percentage points.

 

(2)

Provision for income taxes for the three months ended February 28, 2018 includes the impact of the U.S. 2017 Tax Cuts and Jobs Act, which was signed into law during our third quarter of fiscal 2018.

 

 

1


ORACLE CORPORATION

Q3 FISCAL 2018 FINANCIAL RESULTS

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

($ in millions, except per share data)

 

 

 

Three Months Ended February 28,

 

 

% Increase (Decrease)

in US$

 

% Increase (Decrease) in

Constant Currency (2)

 

 

2018

GAAP

 

 

Adj.

 

 

2018

Non-GAAP

 

 

2017

GAAP

 

 

Adj.

 

 

2017

Non-GAAP

 

 

GAAP

 

Non-GAAP

 

GAAP

 

Non-GAAP

TOTAL REVENUES

 

$

9,771

 

 

$

5

 

 

$

9,776

 

 

$

9,205

 

 

$

69

 

 

$

9,274

 

 

6%

 

5%

 

2%

 

1%

TOTAL CLOUD AND ON-PREMISE SOFTWARE REVENUES

 

 

7,981

 

 

 

5

 

 

 

7,986

 

 

 

7,365

 

 

 

69

 

 

 

7,434

 

 

8%

 

7%

 

4%

 

3%

TOTAL CLOUD REVENUES

 

 

1,566

 

 

 

5

 

 

 

1,571

 

 

 

1,189

 

 

 

69

 

 

 

1,258

 

 

32%

 

25%

 

29%

 

22%

Cloud software as a service

 

 

1,151

 

 

 

4

 

 

 

1,155

 

 

 

865

 

 

 

69

 

 

 

934

 

 

33%

 

24%

 

31%

 

21%

Cloud platform as a service and infrastructure as a service

 

 

415

 

 

 

1

 

 

 

416

 

 

 

324

 

 

 

 

 

 

324

 

 

28%

 

28%

 

24%

 

24%

TOTAL OPERATING EXPENSES

 

$

6,361

 

 

$

(874

)

 

$

5,487

 

 

$

6,246

 

 

$

(916

)

 

$

5,330

 

 

2%

 

3%

 

(1%)

 

0%

Cloud software as a service (4)

 

 

398

 

 

 

(11

)

 

 

387

 

 

 

330

 

 

 

(6

)

 

 

324

 

 

20%

 

19%

 

17%

 

16%

Cloud platform as a service and infrastructure as a service (4)

 

 

275

 

 

 

(3

)

 

 

272

 

 

 

175

 

 

 

(1

)

 

 

174

 

 

57%

 

57%

 

54%

 

53%

Sales and marketing (3)

 

 

2,033

 

 

 

(84

)

 

 

1,949

 

 

 

2,004

 

 

 

(75

)

 

 

1,929

 

 

1%

 

1%

 

(2%)

 

(3%)

Stock-based compensation (4)

 

 

288

 

 

 

(288

)

 

 

 

 

 

246

 

 

 

(246

)

 

 

 

 

17%

 

*

 

17%

 

*

Amortization of intangible assets (5)

 

 

394

 

 

 

(394

)

 

 

 

 

 

397

 

 

 

(397

)

 

 

 

 

(1%)

 

*

 

(1%)

 

*

Acquisition related and other

 

 

3

 

 

 

(3

)

 

 

 

 

 

30

 

 

 

(30

)

 

 

 

 

(89%)

 

*

 

(90%)

 

*

Restructuring

 

 

91

 

 

 

(91

)

 

 

 

 

 

161

 

 

 

(161

)

 

 

 

 

(43%)

 

*

 

(46%)

 

*

CLOUD SOFTWARE AS A SERVICE MARGIN %

 

65%

 

 

 

 

 

 

67%

 

 

62%

 

 

 

 

 

 

65%

 

 

365 bp.

 

128 bp.

 

389 bp.

 

154 bp.

CLOUD PLATFORM AS A SERVICE AND INFRASTRUCTURE AS A SERVICE MARGIN %

 

34%

 

 

 

 

 

 

35%

 

 

46%

 

 

 

 

 

 

46%

 

 

(1,220) bp.

 

(1,174) bp.

 

(1,300) bp.

 

(1,252) bp.

OPERATING INCOME

 

$

3,410

 

 

$

879

 

 

$

4,289

 

 

$

2,959

 

 

$

985

 

 

$

3,944

 

 

15%

 

9%

 

9%

 

4%

OPERATING MARGIN %

 

35%

 

 

 

 

 

 

44%

 

 

32%

 

 

 

 

 

 

43%

 

 

275 bp.

 

133 bp.

 

214 bp.

 

102 bp.

INCOME TAX EFFECTS (6)

 

$

7,324

 

 

$

(6,651

)

 

$

673

 

 

$

459

 

 

$

336

 

 

$

795

 

 

1,495%

 

(15%)

 

1,490%

 

(19%)

NET INCOME (LOSS)

 

$

(4,024

)

 

$

7,530

 

 

$

3,506

 

 

$

2,239

 

 

$

649

 

 

$

2,888

 

 

(280%)

 

21%

 

(280%)

 

16%

DILUTED EARNINGS (LOSS) PER SHARE (7)

 

$

(0.98

)

 

 

 

 

 

$

0.83

 

 

$

0.53

 

 

 

 

 

 

$

0.69

 

 

(283%)

 

20%

 

(283%)

 

15%

DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING (7)

 

 

4,122

 

 

 

114

 

 

 

4,236

 

 

 

4,204

 

 

 

 

 

 

4,204

 

 

(2%)

 

1%

 

(2%)

 

1%

 

 

(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, 2017, which was the last day of our prior fiscal year, rather than the actual exchange rates in effect during the respective periods.

 

(3)

Non-GAAP adjustments to sales and marketing expenses were as follows:

 

 

Three Months Ended

February 28,

 

(in millions)

 

2018

 

 

2017

 

Stock-based compensation (4)

 

$

(87

)

 

$

(96

)

Acquired deferred sales commissions amortization

 

 

3

 

 

 

21

 

Total non-GAAP sales and marketing adjustments

 

$

(84

)

 

$

(75

)

 

(4)

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

 

 

Three Months Ended

February 28, 2018

 

 

Three Months Ended

February 28, 2017

 

 

 

GAAP

 

 

Adj.

 

 

Non-GAAP

 

 

GAAP

 

 

Adj.

 

 

Non-GAAP

 

Software license updates and product support

 

$

7

 

 

$

(7

)

 

$

 

 

$

6

 

 

$

(6

)

 

$

 

Hardware

 

 

2

 

 

 

(2

)

 

 

 

 

 

3

 

 

 

(3

)

 

 

 

Services

 

 

13

 

 

 

(13

)

 

 

 

 

 

14

 

 

 

(14

)

 

 

 

Research and development

 

 

221

 

 

 

(221

)

 

 

 

 

 

191

 

 

 

(191

)

 

 

 

General and administrative

 

 

45

 

 

 

(45

)

 

 

 

 

 

32

 

 

 

(32

)

 

 

 

Subtotal

 

 

288

 

 

 

(288

)

 

 

 

 

 

246

 

 

 

(246

)

 

 

 

Cloud software as a service

 

 

11

 

 

 

(11

)

 

 

 

 

 

6

 

 

 

(6

)

 

 

 

Cloud platform as a service and infrastructure as a service

 

 

3

 

 

 

(3

)

 

 

 

 

 

1

 

 

 

(1

)

 

 

 

Sales and marketing

 

 

87

 

 

 

(87

)

 

 

 

 

 

96

 

 

 

(96

)

 

 

 

Acquisition related and other

 

 

 

 

 

 

 

 

 

 

 

22

 

 

 

(22

)

 

 

 

Total stock-based compensation

 

$

389

 

 

$

(389

)

 

$

 

 

$

371

 

 

$

(371

)

 

$

 

 

(5)

Estimated future annual amortization expense related to intangible assets as of February 28, 2018 was as follows:

 

Remainder of fiscal 2018

 

$

387

 

Fiscal 2019

 

 

1,411

 

Fiscal 2020

 

 

1,210

 

Fiscal 2021

 

 

1,023

 

Fiscal 2022

 

 

918

 

Fiscal 2023

 

 

567

 

Thereafter

 

 

884

 

Total intangible assets, net

 

$

6,400

 

 

(6)

Income tax effects were calculated reflecting an effective GAAP tax rate of 222.0% and 17.0% in the third quarter of fiscal 2018 and 2017, respectively, and an effective non-GAAP tax rate of 16.1% and 21.6% in the third quarter of fiscal 2018 and 2017, respectively. The difference between our GAAP and non-GAAP tax rates in the third quarter of fiscal 2018 was primarily due to the impact of the U.S. 2017 Tax Cuts and Jobs Act (refer to Appendix A for additional information).  The difference between our GAAP and non-GAAP tax rates in the third quarter of fiscal 2017 was primarily due to the net tax effects on stock-based compensation expense and acquisition related items, including the tax effects of amortization of intangible assets.

 

 

(7)

In the third quarter of fiscal 2018, GAAP diluted loss per share was calculated excluding the dilutive effects of 114 million shares related to employee stock plans as the effect would be anti-dilutive.

 

*

Not meaningful


2


ORACLE CORPORATION

Q3 FISCAL 2018 YEAR TO DATE FINANCIAL RESULTS

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

($ in millions, except per share data)

 

 

 

Nine Months Ended February 28,

 

% Increase

 

% Increase

(Decrease)

 

 

2018

 

 

% of

Revenues

 

2017

 

 

% of

Revenues

 

(Decrease)

in US $

 

in Constant

Currency (1)

REVENUES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cloud software as a service

 

$

3,340

 

 

12%

 

$

2,247

 

 

8%

 

49%

 

47%

Cloud platform as a service and infrastructure as a service

 

 

1,212

 

 

4%

 

 

964

 

 

4%

 

26%

 

23%

Total cloud revenues

 

 

4,552

 

 

16%

 

 

3,211

 

 

12%

 

42%

 

40%

New software licenses

 

 

3,706

 

 

13%

 

 

3,792

 

 

14%

 

(2%)

 

(5%)

Software license updates and product support

 

 

14,932

 

 

52%

 

 

14,331

 

 

54%

 

4%

 

2%

Total on-premise software revenues

 

 

18,638

 

 

65%

 

 

18,123

 

 

68%

 

3%

 

0%

Total cloud and on-premise software revenues

 

 

23,190

 

 

81%

 

 

21,334

 

 

80%

 

9%

 

6%

Hardware revenues

 

 

2,878

 

 

10%

 

 

3,037

 

 

11%

 

(5%)

 

(7%)

Services revenues

 

 

2,511

 

 

9%

 

 

2,464

 

 

9%

 

2%

 

0%

Total revenues

 

 

28,579

 

 

100%

 

 

26,835

 

 

100%

 

6%

 

4%

OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cloud software as a service

 

 

1,168

 

 

4%

 

 

930

 

 

3%

 

26%

 

24%

Cloud platform as a service and infrastructure as a service

 

 

743

 

 

3%

 

 

463

 

 

2%

 

60%

 

58%

Software license updates and product support

 

 

738

 

 

3%

 

 

786

 

 

3%

 

(6%)

 

(8%)

Hardware

 

 

1,119

 

 

4%

 

 

1,214

 

 

5%

 

(8%)

 

(10%)

Services

 

 

2,134

 

 

8%

 

 

2,073

 

 

8%

 

3%

 

0%

Sales and marketing

 

 

6,106

 

 

21%

 

 

5,883

 

 

22%

 

4%

 

2%

Research and development

 

 

4,547

 

 

16%

 

 

4,551

 

 

17%

 

0%

 

(1%)

General and administrative

 

 

982

 

 

3%

 

 

859

 

 

3%

 

14%

 

13%

Amortization of intangible assets

 

 

1,205

 

 

4%

 

 

1,010

 

 

4%

 

19%

 

19%

Acquisition related and other

 

 

32

 

 

0%

 

 

84

 

 

0%

 

(63%)

 

(63%)

Restructuring

 

 

506

 

 

2%

 

 

346

 

 

1%

 

47%

 

41%

Total operating expenses

 

 

19,280

 

 

68%

 

 

18,199

 

 

68%

 

6%

 

4%

OPERATING INCOME

 

 

9,299

 

 

32%

 

 

8,636

 

 

32%

 

8%

 

4%

Interest expense

 

 

(1,477

)

 

(5%)

 

 

(1,317

)

 

(5%)

 

12%

 

12%

Non-operating income, net

 

 

929

 

 

3%

 

 

437

 

 

2%

 

113%

 

114%

INCOME BEFORE PROVISION FOR INCOME TAXES

 

 

8,751

 

 

30%

 

 

7,756

 

 

29%

 

13%

 

9%

Provision for income taxes (2)

 

 

8,333

 

 

29%

 

 

1,653

 

 

6%

 

404%

 

403%

NET INCOME

 

$

418

 

 

1%

 

$

6,103

 

 

23%

 

(93%)

 

(97%)

EARNINGS PER SHARE:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.10

 

 

 

 

$

1.49

 

 

 

 

 

 

 

Diluted

 

$

0.10

 

 

 

 

$

1.45

 

 

 

 

 

 

 

WEIGHTED AVERAGE COMMON STOCK OUTSTANDING:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

4,146

 

 

 

 

 

4,110

 

 

 

 

 

 

 

Diluted

 

 

4,268

 

 

 

 

 

4,207

 

 

 

 

 

 

 

 

 

(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, 2017, 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, 2018 compared with the corresponding prior year period increased our revenues by 2 percentage points, operating expenses by 2 percentage points and operating income by 4 percentage points.

 

(2)

Provision for income taxes for the nine months ended February 28, 2018 includes the impact of the U.S. 2017 Tax Cuts and Jobs Act, which was signed into law during our third quarter of fiscal 2018.

 

3


ORACLE CORPORATION

Q3 FISCAL 2018 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 28,

 

 

% Increase (Decrease)

in US$

 

% Increase (Decrease) in

Constant Currency (2)

 

 

2018

GAAP

 

 

Adj.

 

 

2018

Non-GAAP

 

 

2017

GAAP

 

 

Adj.

 

 

2017

Non-GAAP

 

 

GAAP

 

Non-GAAP

 

GAAP

 

Non-GAAP

TOTAL REVENUES

 

$

28,579

 

 

$

39

 

 

$

28,618

 

 

$

26,835

 

 

$

122

 

 

$

26,957

 

 

6%

 

6%

 

4%

 

4%

TOTAL CLOUD AND ON-PREMISE SOFTWARE REVENUES

 

 

23,190

 

 

 

39

 

 

 

23,229

 

 

 

21,334

 

 

 

121

 

 

 

21,455

 

 

9%

 

8%

 

6%

 

6%

TOTAL CLOUD REVENUES

 

 

4,552

 

 

 

39

 

 

 

4,591