Oracle Reports Q2 GAAP EPS Up 24% to 53 Cents; Q2 Non-GAAP EPS

Oracle Reports Q2 GAAP EPS Up 24% to 53 Cents; Q2 Non-GAAP EPS Up 18%
to 64 Cents 
New Software Licenses and Cloud Subscriptions Up 17%; Trailing Twelve
Month Operating Cash Flow of $13.5 Billion 
REDWOOD SHORES, CA -- (Marketwire) -- 12/18/12 --  Oracle Corporation
(NASDAQ: ORCL) today announced that fiscal 2013 Q2 total revenues
were up 3% to $9.1 billion. New software licenses and cloud software
subscriptions revenues were up 17% to $2.4 billion. Software license
updates and product support revenues were up 7% to $4.3 billion.
Hardware systems products revenues were $734 million. GAAP operating
income was up 12% to $3.5 billion, and GAAP operating margin was 38%.
Non-GAAP operating income was up 9% to $4.3 billion, and non-GAAP
operating margin was 47%. GAAP net income was up 18% to $2.6 billion,
while non-GAAP net income was up 12% to $3.1 billion. GAAP earnings
per share were $0.53, up 24% compared to last year while non-GAAP
earnings per share were up 18% to $0.64. GAAP operating cash flow on
a trailing twelve-month basis was $13.5 billion.  
Without the impact of the US dollar strengthening compared to foreign
currencies, Oracle's reported Q2 GAAP earnings per share would have
been $0.01 higher at $0.54, up 26%, and Q2 non-GAAP earnings per
share would have been $0.01 higher at $0.65, up 19%. Total revenues
also would have been up 5%, and new software licenses and cloud
software subscriptions revenues would have been up 18%.  
"New software license sales and cloud subscriptions grew 18% in
constant currency," said Oracle President and CFO, Safra Catz.
"Strong organic growth in our software business coupled with a focus
on the highly profitable engineered systems segment of our hardware
business enabled a Q2 non-GAAP operating margin of 47%. During the
last four quarters operating cash flow was more than $13.5 billion --
$10.2 billion of which was returned to our shareholders as we
repurchased nearly 350 million ORCL shares during that same twelve
month period."  
"Q2 performance was strong and broad based as all geographies
reported double-digit revenue growth in new software license and
cloud subscriptions," said Oracle President, Mark Hurd.
"Applications, middleware and database all had double-digit growth in
new software license and cloud subscript
ions, with applications
leading the pack with growth of over 30%. Our cloud offering of HCM,
CRM and ERP applications plus the Oracle database and Java platform
services is the strongest and most complete in the industry. Already
approaching a one billion dollar run rate, our Cloud business will
become much bigger over time."  
"Sun has proven to be one of the most strategic and profitable
acquisitions we have ever made," said Oracle CEO, Larry Ellison. "Sun
technology enabled Oracle to become a leader in the highly profitable
engineered system segment of the hardware business. I believe that
products like Exadata and the SPARC SuperCluster will not only
continue to drive improved profitability in our hardware business, by
the end of this fiscal year, they will also drive growth in our
hardware business."   
On December 3, 2012, the Board of Directors declared an accelerated
second, third and fourth quarter cash dividend totaling $0.18 per
share of outstanding common stock. This accelerated dividend is
intended by the Board to be in lieu of quarterly dividends Oracle
would have otherwise announced with its quarterly earnings results
for the second, third and fourth quarters of fiscal year 2013, and
that would have been paid in calendar year 2013. This accelerated
dividend will be paid to stockholders of record as of the close of
business on December 14, 2012, with a payment date of December 21,
2012. 
Q2 Fiscal 2013 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
(913) 981-5520, Passcode: 810144. To access the live webcast of this
event, please visit the Oracle Investor Relations website at
http://www.oracle.com/investor. In addition, Oracle's Q2 results and
Fiscal 2013 financial tables are available on the Oracle Investor
Relations website.  
A replay of the conference call will also be available by dialing
(719) 457-0820 or (888) 203-1112, Passcode: 4005111. 
About Oracle  
Oracle engineers hardware and software to work together in the cloud
and in your data center. For more information about Oracle (NASDAQ:
ORCL), visit www.oracle.com 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 our Cloud business becoming
bigger over time and products like Exadata and SPARC SuperCluster
driving profitability and growth in our hardware business, 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 current European debt 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
hardware systems business may not be successful, and we may fail to
achieve our financial forecasts with respect to this business. (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) 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,
cloud software subscriptions, 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 December 18, 2012. Oracle undertakes
no duty to update any statement in light of new information or future
events. 


 
                                                                            
                            ORACLE CORPORATION                              
                                                                            
                     Q2 FISCAL 2013 FINANCIAL RESULTS                       
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS               
                  ($ in millions, except per share data)                    
                                                                            
                   Three Months Ended November 30,                          
                  --------------------------------                          
                                                                % Increase  
                                                                (Decrease)  
                                                                    in      
                                                    % Increase   Constant   
                           % of             % of    (Decrease)   Currency   
                   2012  Revenues   2011  Revenues    in US $       (1)     
                  ------ --------  ------ --------  ----------  ----------  
REVENUES                                                                    
  New software                                                              
   licenses and                                                             
   cloud software                                                           
   subscriptions  $2,389       26% $2,048       23%         17%         18% 
  Software                                                                  
   license                                                                  
   updates and                                                              
   product                                                                  
   support         4,260       47%  3,986       46%          7%          8% 
                  ------ --------  ------ --------                          
    Software                                                                
     Revenues      6,649       73%  6,034       69%         10%         11% 
                  ------ --------  ------ --------                          
  Hardware                                                                  
   systems                                                                  
   products          734        8%    953       11%        (23%)       (23%)
  Hardware                                                                  
   systems                                                                  
   support           587        7%    625        7%         (6%)        (5%)
                  ------ --------  ------ --------                          
    Hardware                                                                
     Systems                                                                
     Revenues      1,321       15%  1,578       18%        (16%)       (16%)
                  ------ --------  ------ --------                          
    Services                                                                
     Revenues      1,124       12%  1,180       13%         (5%)        (3%)
                  ------ --------  ------ --------                          
                                                                            
      Total                                                                 
       Revenues    9,094      100%  8,792      100%          3%          5% 
                  ------ --------  ------ --------                          
                                                                            
OPERATING                                                                   
 EXPENSES                                                                   
  Sales and                                                                 
   marketing       1,773       20%  1,697       19%          4%          6% 
  Software                                                                  
   license                                                                  
   updates and                                                              
   product                                                                  
   support           270        3%    298        3%         (9%)        (8%)
  Hardware                                                                  
   systems                                                                  
   products          367        4%    471        5%        (22%)       (22%)
  Hardware                                                                  
   systems                                                                  
   support           227        3%    258        3%        (12%)       (11%)
  Services           930       10%    929       11%          0%          2% 
  Research and                                                              
   development     1,199       13%  1,102       13%          9%         10% 
  General and                                                               
   administrative    263        3%    277        3%         (5%)        (3%)
  Amortization of                                                           
   intangible                                                               
   assets            584        6%    592        7%         (1%)        (1%)
  Acquisition                                                               
   related and                                                              
   other (2)        (121)      (1%)     5        0%     (2,432%)    (1,991%)
  Restructuring      131        1%     52        1%        151%        152% 
                  ------ --------  ------ --------                          
                                                                            
      Total                                                                 
       Operating                                                            
       Expenses    5,623       62%  5,681       65%         (1%)         0% 
                  ------ --------  ------ --------                          
                                                                            
OPERATING INCOME   3,471       38%  3,111       35%         12%         13% 
  Interest                                                                  
   expense          (195)      (2%)  (192)      (2%)         2%          2% 
  Non-operating                                                             
   income, net         4        0%     41        1%        (91%)       (90%)
                  ------ --------  ------ --------                          
                                                                            
INCOME BEFORE                                                               
 PROVISION FOR                                                              
 INCOME TAXES      3,280       
36%  2,960       34%         11%         13% 
                  ------ --------  ------ --------                          
  Provision for                                                             
   income taxes      699        8%    768        9%         (9%)        (8%)
                  ------ --------  ------ --------                          
                                                                            
NET INCOME        $2,581       28% $2,192       25%         18%         20% 
                  ====== ========  ====== ========                          
                                                                            
EARNINGS PER                                                                
 SHARE:                                                                     
  Basic           $ 0.54           $ 0.43                                   
  Diluted         $ 0.53           $ 0.43                                   
                                         
                                   
WEIGHTED AVERAGE                                                            
 COMMON SHARES                                                              
 OUTSTANDING:                                                               
  Basic            4,792            5,041                                   
  Diluted          4,868            5,123                                   
                                                                            
(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, 2012, 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 November 30, 2012
    compared with the corresponding prior year period decreased our revenues
    by 2 percentage points, operating expenses by 1 percentage point and    
    operating income by 1 percentage point.                                 
                                                                            
(2) Acquisition related and other expenses for the three months ended       
    November 30, 2012 included a net benefit of $145 million due to an      
    acquisition related item.                                               
                                                                            
                                                                            
                                                                            
                                                                            
                             ORACLE CORPORATION                             
                                                                            
                      Q2 FISCAL 2013 FINANCIAL RESULTS                      
      RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1)     
                   ($ in millions, except per share data)                   
                                                                            
                              Three Months Ended November 30,               
                 ---------------------------------------------------------  
                                                                     2011   
                   2012                2012      2011                Non-   
                   GAAP      Adj.    Non-GAAP    GAAP      Adj.      GAAP   
                 --------  --------  --------  --------  --------  -------  
                                                                            
TOTAL REVENUES                                                              
 (3) (4) (5)     $  9,094  $     19  $  9,113  $  8,792  $     19  $ 8,811  
                                                                            
TOTAL SOFTWARE                                                              
 REVENUES (3)                                                               
 (4)             $  6,649  $     16  $  6,665  $  6,034  $     10  $ 6,044  
  New software                                                              
   licenses and                                                             
   cloud                                                                    
   software                                                                 
   subscriptions                                                            
   (3)              2,389        12     2,401     2,048         -    2,048  
  Software                                                                  
   license                                                                  
   updates and                                                              
   product                                                                  
   support (4)      4,260         4     4,264     3,986        10    3,996  
                                                                            
TOTAL HARDWARE                                                              
 SYSTEMS                                                                    
 REVENUES (5)    $  1,321  $      3  $  1,324  $  1,578  $      9  $ 1,587  
  Hardware                                                                  
   systems                                                                  
   products           734         -       734       953         -      953  
  Hardware                                                                  
   systems                                                                  
   support (5)        587         3       590       625         9      634  
                                                                            
TOTAL OPERATING                                                             
 EXPENSES        $  5,623  $   (782) $  4,841  $  5,681  $   (799) $ 4,882  
  Stock-based                                                               
   compensation                                                             
   (6)                188      (188)        -       150      (150)       -  
  Amortization                                                              
   of intangible                                                            
   assets (7)         584      (584)        -       592      (592)       -  
  Acquisition                                                               
   related and                                                              
   other             (121)      121         -         5        (5)       -  
  Restructuring       131      (131)        -        52       (52)       -  
                                                                            
OPERATING INCOME $  3,471  $    801  $  4,272  $  3,111  $    818  $ 3,929  
                                                                            
OPERATING                                                                   
 MARGIN%               38%                 47%       35%                45% 
                                                                            
INCOME TAX                                                                  
 EFFECTS (8)     $    699  $    260  $    959  $    768  $    226  $   994  
                                                                            
NET INCOME       $  2,581  $    541  $  3,122  $  2,192  $    592  $ 2,784  
                                 
                                           
DILUTED EARNINGS                                                            
 PER SHARE       $   0.53            $   0.64  $   0.43            $  0.54  
                                                                            
DILUTED WEIGHTED                                                            
 AVERAGE COMMON                                                             
 SHARES                                                                     
 OUTSTANDING        4,868         -     4,868     5,123         -    5,123  
 
                 % Increase (Decrease) in    % Increase (Decrease) in  
                           US $               Constant Currency (2)    
                -------------------------   -------------------------  
                    GAAP        Non-GAAP        GAAP        Non-GAAP   
                -----------   -----------   -----------   -----------  
                                                                       
TOTAL REVENUES                                                         
 (3) (4) (5)              3%            3%            5%            5% 
                                                                       
TOTAL SOFTWARE                                                         
 REVENUES (3)                                                          
 (4)                     10%           10%           11%           12% 
  New software                                                         
   licenses and                                                        
   cloud                                                               
   software                                                            
   subscriptions                                                       
   (3)                   17%           17%           18%           18% 
  Software                                                             
   license                                                             
   updates and                                                         
   product                                                             
   support (4)            7%            7%            8%            8% 
                                                                       
TOTAL HARDWARE                                                         
 SYSTEMS                                                               
 REVENUES (5)           (16%)         (17%)         (16%)         (16%)
  Hardware                                                             
   systems                                                             
   products             (23%)         (23%)         (23%)         (23%)
  Hardware                                                             
   systems                                                             
   support (5)           (6%)          (7%)          (5%)          (6%)
                                                                       
TOTAL OPERATING                                                        
 EXPENSES                (1%)          (1%)           0%            0% 
  Stock-based                                                          
   compensation                                                        
   (6)                   26%            *            26%            *  
  Amortization                                                         
   of intangible                                                       
   assets (7)            (1%)           *            (1%)           *  
  Acquisition                                                          
   related and                                                         
   other             (2,432%)           *        (1,991%)           *  
  Restructuring         151%            *           152%            *  
                                                                       
OPERATING INCOME         12%            9%           13%           10% 
                                                                       
OPERATING                                                              
 MARGIN%            278 bp.       229 bp.       287 bp.       224 bp.  
                                                                       
INCOME TAX                                                             
 EFFECTS (8)             (9%)          (3%)          (8%)          (2%)
                                                                       
NET INCOME               18%           12%           20%           13% 
                                                                       
DILUTED EARNINGS                                                       
 PER SHARE               24%           18%           26%           19% 
                                                                       
DILUTED WEIGHTED                                                       
 AVERAGE COMMON                                                        
 SHARES                                                                
 OUTSTANDING             (5%)          (5%)          (5%)          (5%)
                                                                            
(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, 2012, 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 November 30, 2012, approximately $5 million in estimated revenues 
    related to assumed cloud software subscriptions contracts will not be   
    recognized for the remainder of fiscal 2013 due to business combination 
    accounting rules.                                                       
                                                                            
(4) As of November 30, 2012, approximately $5 million and $2 million in     
    estimated revenues related to assumed software support contracts will   
    not be recognized for the remainder of fiscal 2013 and fiscal 2014,     
    respectively, due to business combination accounting rules.             
                                                                            
(5) As of November 30, 2012, approximately $5 million and $2 million in     
    estimated revenues related to hardware systems support contracts will   
    not be recognized for the remainder of fiscal 2013 and fiscal 2014,     
    respectively, due to business combination accounting rules.             
                                                                            
(6) Stock-based compensation was included in the following GAAP operating   
    expense categories:                  
                                   
                                                                            
                                                                            
                                                                            
                           Three Months Ended         Three Months Ended    
                            November 30, 2012          November 30, 2011    
                       -------------------------- --------------------------
                         GAAP     Adj.   Non-GAAP   GAAP     Adj.   Non-GAAP
                       -------- -------  -------- -------- -------  --------
    Sales and                                                               
     marketing         $     43 $   (43) $      - $     29 $   (29) $      -
    Software license                                                        
     updates and                                                            
     product support          5      (5)        -        5      (5)        -
    Hardware systems                                                        
     products                 1      (1)        -        -       -         -
    Hardware systems                                                        
     support                  1      (1)        -        2      (2)        -
    Services                  8      (8)        -        6      (6)        -
    Research and                                                            
     development             89     (89)        -       68     (68)        -
    General and                                                             
     administrative          41     (41)        -       40     (40)        -
                       -------- -------  -------- -------- -------  --------
      Subtotal              188    (188)        -      150    (150)        -
                       -------- -------  -------- -------- -------  --------
    Acquisition                                                             
     related and other        4      (4)        -        2      (2)        -
                       -------- -------  -------- -------- -------  --------
      Total stock-                                                          
       based                                                                
       compensation    $    192 $  (192) $      - $    152 $  (152) $      -
                       -------- -------  -------- -------- -------  --------
                                                                            
                                                                            
(7) Estimated future annual amortization expense related to intangible      
     assets as of November 30, 2012 was as follows:                         
    Remainder of                                                            
     Fiscal 2013       $  1,140                                             
    Fiscal 2014           1,972                                             
    Fiscal 2015           1,522                                             
    Fiscal 2016             967                                             
    Fiscal 2017             408                                             
    Fiscal 2018             284                                             
    Thereafter              569                                             
                       --------                                             
      Total intangible                                                      
       assets subject                                                       
       to amortization    6,862                                             
    In-process                                                              
     research and                                                           
     development             11                                             
                       --------                                             
   
   Total intangible                                                      
       assets, net     $  6,873                                             
                       ========                                             
                                                                            
(8) Income tax effects were calculated reflecting an effective GAAP tax rate
     of 21.3% and 25.9% in the second quarter of fiscal 2013 and 2012,      
     respectively, and an effective non-GAAP tax rate of 23.5% and 26.3% in 
     the second quarter of fiscal 2013 and 2012, respectively. The          
     difference between our GAAP and non-GAAP tax rates in the second       
     quarter of fiscal 2013 was primarily due to the net tax effects of     
     acquisition related items, including the tax effect of amortization of 
     intangible assets. The difference between our GAAP and non-GAAP tax    
     rates in the second quarter of fiscal 2012 was primarily due to        
     differences in jurisdictional tax rates and the related tax benefits   
     attributable to our restructuring expenses.                            
                                                                            
*   Not meaningful                                                          
                                                                            
                                                                            
                                                                            
                            ORACLE CORPORATION                              
                                                                            
               Q2 FISCAL 2013 YEAR TO DATE FINANCIAL RESULTS                
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS               
                  ($ in millions, except per share data)                    
                                                                            
                      Six Months Ended November 30,                         
                   ----------------------------------                       
                                                                      %     
                                                                  Increase  
                                                                 (Decrease) 
                                                           %         in   
                                                        Increase  Constant  
                             % of              % of    (Decrease) Currency  
                     2012  Revenues    2011  Revenues    in US $     (1)    
                   ------- --------  ------- --------  ---------  --------
REVENUES                                                                     
  New software                                                              
   licenses and                                                             
   cloud software                                                           
   subscriptions   $ 3,963       23% $ 3,546       21%        12%       14% 
  Software license                                                          
   updates and                                                              
   product support   8,400       49%   8,008       46%         5%        8% 
                   ------- --------  ------- --------                       
    Software                                                                
     Revenues       12,363       72%  11,554       67%         7%       10% 
                   ------- --------  ------- --------                       
  Hardware systems                                                          
   products          1,513        9%   1,981       12%       (24%)     (22%)
  Hardware systems                                                          
   support           1,161        6%   1,271        7%        (9%)      (6%)
                   ------- --------  ------- ---
-----                       
    Hardware                                                                
     Systems                                                                
     Revenues        2,674       15%   3,252       19%       (18%)     (15%)
                   ------- --------  ------- --------                       
    Services                                                                
     Revenues        2,238       13%   2,360       14%        (5%)      (2%)
                   ------- --------  ------- --------                       
      Total                                                                 
       Revenues     17,275      100%  17,166      100%         1%        4% 
                   ------- --------  ------- --------                       
                                                                            
OPERATING EXPENSES                                                          
  Sales and                                                                 
   marketing         3,319       19%   3,327       19%         0%        3% 
  Software license                                                          
   updates and                                                              
   product support     553        3%     594        3%        (7%)      (4%)
  Hardware systems                                                          
   products            751        4%     943        6%       (20%)     (18%)
  Hardware systems                                                          
   support             451        3%     541        3%       (17%)     (14%)
  Services           1,814       10%   1,865       11%        (3%)       1% 
  Research and                                                              
   development       2,400       14%   2,152       13%        11%       13% 
  General and                                                               
   administrative      538        3%     587        3%        (8%)      (6%)
  Amortization of                                                           
   intangible                                                               
   assets            1,203        7%   1,184        7%         2%        2% 
  Acquisition                                                               
   related and                                                              
   other (2)          (380)      (2%)     25        0%    (1,647%)  (1,696%)
  Restructuring        276        2%     154        1%        80%       91% 
                   ------- --------  ------- --------                       
      Total                                                                 
       Operating                                                            
       Expenses     10,925       63%  11,372       66%        (4%)      (1%)
                   ------- --------  ------- --------                       
                                                                            
OPERATING INCOME     6,350       37%   5,794       34%        10%       14% 
  Interest expense    (382)      (2%)   (384)      (2%)        0%        0% 
  Non-operating                                                             
   income, net          14        0%      21        0%       (29%)      (2%)
                   ------- --------  ------- --------                       
                                                                            
INCOME BEFORE                                                               
 PROVISION FOR                                                              
 INCOME TAXES        5,982       35%   5,431       32%        10%       15% 
                   ------- --------  ------- --------                       
  Provision for                                                             
   income taxes      1,367        8%   1,399        9%        (2%)       2% 
                   ------- --------  ------- --------                       
                                                                            
NET INCOME         $ 4,615       27% $ 4,032       23%        14%       19% 
                   ======= ========  ======= ========                       
                                                                            
EARNINGS PER                                                                
 SHARE:                                                                     
  Basic            $  0.96           $  0.80                                
  Diluted          $  0.94           $  0.78                                
                                                                            
WEIGHTED AVERAGE                                                            
 COMMON SHARES                                                              
 OUTSTANDING:                                                               
  Basic              4,829             5,052                                
  Diluted            4,904             5,137                                
                                                                            
                                                                            
(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, 2012, 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 six months ended November 30, 2012  
    compared with the corresponding prior year period decreased our revenues
    by 3 percentage points, operating expenses by 3 percentage points and   
    operating income by 4 percentage points.                                
                                                                            
(2) Acquisition related and other expenses for the six months ended November
    30, 2012 included a benefit of $306 million related to certain          
    litigation and a net benefit of $129 million due to an acquisition      
    related item.                                                           
                                                                            
                                                                            
                                                                            
                             ORACLE CORPORATION                             
                                                                            
                Q2 FISCAL 2013 YEAR TO DATE FINANCIAL RESULTS               
      RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1)     
                   ($ in millions, except per share data)                   
                                                                            
                               Six Months Ended November 30,                
                 ---------------------------------------------------------  
                                                                     2011   
                   2012                2012      2011                Non-   
                   GAAP      Adj.    Non-GAAP    GAAP      Adj.      GAAP   
                 --------  --------  --------  --------  --------  -------  
                                                                            
TOTAL REVENUES                                                              
 (3) (4) (5)     $ 17,275  $     47  $ 17,322  $ 1
7,166  $     43  $17,209  
                                                                            
TOTAL SOFTWARE                                                              
 REVENUES (3)                                                               
 (4)             $ 12,363  $     39  $ 12,402  $ 11,554  $     24  $11,578  
  New software                                                              
   licenses and                                                             
   cloud                                                                    
   software                                                                 
   subscriptions                                                            
   (3)              3,963        31     3,994     3,546         -    3,546  
  Software                                                                  
   license                                                                  
   updates and                                                              
   product                                                                  
   support (4)      8,400         8     8,408     8,008        24    8,032  
                                                                            
TOTAL HARDWARE                                                              
 SYSTEMS                                                                    
 REVENUES (5)    $  2,674  $      8  $  2,682  $  3,252  $     19  $ 3,271  
  Hardware                                                                  
   systems                                                                  
   products         1,513         -     1,513     1,981         -    1,981  
  Hardware                                                                  
   systems                                                                  
   support (5)      1,161         8     1,169     1,271        19    1,290  
                                                                            
TOTAL OPERATING                                                             
 EXPENSES        $ 10,925  $ (1,464) $  9,461  $ 11,372  $ (1,658) $ 9,714  
  Stock-based                                                               
   compensation                                                             
   (6)                365      (365)        -       295      (295)       -  
  Amortization                                                              
   of intangible                                                            
   assets (7)       1,203    (1,203)        -     1,184    (1,184)       -  
  Acquisition                                                               
   related and                                                              
   other             (380)      380         -        25       (25)       -  
  Restructuring       276      (276)        -       154      (154)       -  
                                                                            
OPERATING INCOME $  6,350  $  1,511  $  7,861  $  5,794  $  1,701  $ 7,495  
                                                                            
OPERATING MARGIN                                                            
 %                     37%                 45%       34%                44% 
                                                                            
INCOME TAX                                                                  
 EFFECTS (8)     $  1,367  $    390  $  1,757  $  1,399  $    483  $ 1,882  
                                                                            
NET INCOME       $  4,615  $  1,121  $  5,736  $  4,032  $  1,218  $ 5,250  
                                                                            
DILUTED EARNINGS                                                            
 PER SHARE       $   0.94            $   1.17  $   0.78            $  1.02  
                                                                            
DILUTED WEIG
HTED                                                            
 AVERAGE COMMON                                                             
 SHARES                                                                     
 OUTSTANDING        4,904         -     4,904     5,137         -    5,137  
 
                 % Increase (Decrease) in    % Increase (Decrease) in  
                           US $               Constant Currency (2)    
                -------------------------   -------------------------  
                    GAAP        Non-GAAP        GAAP        Non-GAAP   
                -----------   -----------   -----------   -----------  
                                                                       
TOTAL REVENUES                                                         
 (3) (4) (5)              1%            1%            4%            4% 
                                                                       
TOTAL SOFTWARE                                                         
 REVENUES (3)                                                          
 (4)                      7%            7%           10%           10% 
  New software                                                         
   licenses and                                                        
   cloud                                                               
   software                                                            
   subscriptions                                                       
   (3)                   12%           13%           14%           15% 
  Software                                                             
   license                                                             
   updates and                                                         
   product                                                             
   support (4)            5%            5%            8%            8% 
                                                                       
TOTAL HARDWARE                                                         
 SYSTEMS                                                               
 REVENUES (5)           (18%)         (18%)         (15%)         (16%)
  Hardware                                                             
   systems                                                             
   products             (24%)         (24%)         (22%)         (22%)
  Hardware                                                             
   systems                                                             
   support (5)           (9%)          (9%)          (6%)          (7%)
                                                                       
TOTAL OPERATING                                                        
 EXPENSES                (4%)          (3%)          (1%)           0% 
  Stock-based                                                          
   compensation                                                        
   (6)                   23%            *            23%            *  
  Amortization                                                         
   of intangible                                                       
   assets (7)             2%            *             2%            *  
  Acquisition                                                          
   related and                                                         
   other             (1,647%)           *        (1,696%)           *  
  Restructuring          80%            *            91%            *  
                                                                       
OPERATING INCOME         10%            5%           14%            8% 
                                                                       
OPERATING MARGIN                                                       
 %                  301 bp.       183 bp.       331 bp.       187 bp.  
                                                                       
 
INCOME TAX                                                             
 EFFECTS (8)             (2%)          (7%)           2%           (3%)
                                                                       
NET INCOME               14%            9%           19%           13% 
                                                                       
DILUTED EARNINGS                                                       
 PER SHARE               20%           14%           25%           18% 
                                                                       
DILUTED WEIGHTED                                                       
 AVERAGE COMMON                                                        
 SHARES                                                                
 OUTSTANDING             (5%)          (5%)          (5%)          (5%)
                                                                            
(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, 2012, 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 November 30, 2012, approximately $5 million in estimated revenues 
    related to assumed cloud software subscriptions contracts will not be   
    recognized for the remainder of fiscal 2013 due to business combination 
    accounting rules.                                                       
                                                                            
(4) As of November 30, 2012, approximately $5 million and $2 million in     
    estimated revenues related to assumed software support contracts will   
    not be recognized for the remainder of fiscal 2013 and fiscal 2014,     
    respectively, due to business combination accounting rules.             
                                                                            
(5) As of November 30, 2012, approximately $5 million and $2 million in     
    estimated revenues related to hardware systems support contracts will   
    not be recognized for the remainder of fiscal 2013 and fiscal 2014,     
    respectively, due to business combination accounting rules.             
                                                                            
(6) Stock-based compensation was included in the following GAAP operating   
    expense categories:                                                     
                                                                            
                            Six Months Ended           Six Months Ended     
                            November 30, 2012          November 30, 2011    
                       -------------------------- --------------------------
                         GAAP     Adj.   Non-GAAP   GAAP     Adj.   Non-GAAP
                       -------- -------  -------- -------- -------  --------
      Sales and                                                             
       marketing       $     81 $   (81) $      - $     55 $   (55) $      -
      Software license                                                      
       updates and                                                          
       product support       10     (10)        -        8      (8)        -
      Hardware systems                                                      
       products               1      (1)        -        1      (1)        -
      Hardware systems                                                      
       support                2      (2)        -        3      (3)        -
      Services               17     (17)        -       10     (10)        -
      Research and                                                          
       development          172    (172)        -      139    (139)        -
      General and                                                           
       administrative        82     (82)        -       79     (79)        -
                       -------- -------  -------- -------- -------  --------
        Subtotal            365    (365)        -      295    (295)        -
                       -------- -------  -------- -------- -------  --------
      Acquisition                                                           
       related and                                                          
       other                 21     (21)        -        3      (3)        -
                       -------- -------  -------- -------- -------  --------
        Total stock-                                                        
         based                                                              
         compensation  $    386 $  (386) $      - $    298 $  (298) $      -
                       ======== =======  ======== ======== =======  ========
                                                                            
                                                                            
(7) Estimated future annual amortization expense related to intangible      
     assets as of November 30, 2012 was as follows:                         
                                                                            
      Remainder of                                                          
       Fiscal 2013     $  1,140                                             
      Fiscal 2014         1,972                                             
      Fiscal 2015         1,522                                             
      Fiscal 2016           967                                             
      Fiscal 2017           408                                             
      Fiscal 2018           284                                             
      Thereafter            569                                             
                       --------                                             
        Total                                                               
         intangible                                                         
         assets                                                             
         subject to                                                         
         amortization     6,862                                             
      In-process                                                            
       research and                                                         
       development           11                                             
                       --------                                             
        Total                                                               
         intangible                                         
                
         assets, net   $  6,873                                             
                       ========                                             
                                                                            
(8) Income tax effects were calculated reflecting an effective GAAP tax rate
    of 22.9% and 25.8% in the first half of fiscal 2013 and 2012,           
    respectively, and an effective non-GAAP tax rate of 23.5% and 26.4% in  
    the first half of fiscal 2013 and 2012, respectively. The differences   
    between our GAAP and non-GAAP tax rates in the first half of fiscal 2013
    were primarily due to the net tax effects of acquisition related items, 
    including the tax effect of amortization of intangible assets, partially
    offset by the disproportionate tax rate impact of certain discrete items
    for the period. The difference between our GAAP and non-GAAP tax rates  
    in the first half of fiscal 2012 was primarily due to income tax effects
    related to our acquired tax exposures and the differences in            
    jurisdictional tax rates and the related tax benefits attributable to   
    our restructuring expenses.                                             
                                                                            
*   Not meaningful                                                          
                                                                            
                                                                            
                                                                            
                             ORACLE CORPORATION                             
                                                                            
                      Q2 FISCAL 2013 FINANCIAL RESULTS                      
                    CONDENSED CONSOLIDATED BALANCE SHEETS                   
                               ($ in millions)                              
                                                                            
                                                   November 30,    May 31,  
                                                       2012         2012    
                                                   ------------ ------------
ASSETS                                                                      
                                                                            
  Current Assets:                                                           
    Cash and cash equivalents                      $     15,912 $     14,955
    Marketable securities                                17,783       15,721
    Trade receivables, net                                4,401        6,377
    Inventories                                             164          158
    Deferred tax assets                                     893          877
    Prepaid expenses and other current assets             1,976        1,935
                                                   ------------ ------------
      Total Current Assets                               41,129       40,023
                                                                            
  Non-Current Assets:                                                       
    Property, plant and equipment, net                    3,093        3,021
    Intangible assets, net                                6,873        7,899
    Goodwill                                             25,458       25,119
    Deferred tax assets                                     782          595
    Other assets                                          2,322        1,670
                                                   ------------ ------------
      Total Non-Current Assets                           38,528       38,304
                                                   ------------ ------------
                                                                            
TOTAL ASSETS                                       $     79,657 $     78,327
                                                   ============ ============
                                                                            
LIABILITIES AND EQUITY                                                      
                                                                            
  Current Liabilities:                                                      
    Notes payable, current and other current                                
     borrowings                                    $      1,250 $      2,950
    Accounts payable                                        372          438
    Accrued compensation and related benefits             1,546        2,002
    Deferred revenues                                     6,504        7,035
    Other current liabilities                             2,675        2,963
                                                   ------------ ------------
      Total Current Liabilities                          12,347       15,388
                                                                            
  Non-Current Liabilities:                                                  
    Notes payable and other non-current borrowings       18,507       13,524
    Income taxes payable                                  3,906        3,759
    Other non-current liabilities                         1,487        1,569
                                                   ------------ ------------
      Total Non-Current Liabilities                      23,900       18,852
                                                                            
  Equity                                                 43,410       44,087
                                                   ------------ ------------
                                                                            
TOTAL LIABILITIES AND EQUITY                       $     79,657 $     78,327
                                                   ============ ============
                                                                            
                                                                            
                                                                            
                             ORACLE CORPORATION                             
                                                                            
                      Q2 FISCAL 2013 FINANCIAL RESULTS                      
              CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS               
                              ($ in millions)                               
                                                                            
                                              Six Months Ended November 30, 
                                             ------------------------------ 
                                                  2012            2011      
                                             --------------  -------------- 
Cash Flows From Operating Activities:                                       
  Net income                                 $        4,615  $        4,032 
  Adjustments to reconcile net income to net                                
   cash provided by operating activities:                                   
    Depreciation                                        261             226 
    Amortization of intangible assets                 1,203           1,184 
    Deferred income taxes                               (40)           (137)
    Stock-based compensation                            386             298 
    Tax benefits on the exercise of stock                                   
     options and vesting of restricted                                      
     stock-based awards                                 179              94 
    Excess tax benefits on the exercise of                                  
     stock options and vesting of restricted                  
              
     stock-based awards                                 (95)            (53)
    Other, net                                           80              53 
    Changes in operating assets and                                         
     liabilities, net of effects from                                       
     acquisitions:                                                          
      Decrease in trade receivables, net              2,038           2,128 
      Decrease in inventories                             -              93 
      (Increase) decrease in prepaid                                        
       expenses and other assets                       (213)            424 
      Decrease in accounts payable and other                                
       liabilities                                     (790)         (1,306)
      (Decrease) increase in income taxes                                   
       payable                                         (559)            184 
      Decrease in deferred revenues                    (599)           (544)
                                             --------------  -------------- 
        Net cash provided by operating                                      
         activities                                   6,466           6,676 
                                             --------------  -------------- 
                                                                            
Cash Flows From Investing Activities:                                       
  Purchases of marketable securities and                                    
   other investments                                (17,314)        (21,422)
  Proceeds from maturities and sales of                                     
   marketable securities and other                                          
   investments                                       15,263          16,335 
  Acquisitions, net of cash acquired                   (660)           (571)
  Capital expenditures                                 (351)           (289)
                                             --------------  -------------- 
        Net cash used for investing                                         
         activities                                  (3,062)         (5,947)
                                             --------------  -------------- 
                                                                            
Cash Flows From Financing Activities:                                       
  Payments for repurchases of common stock           (6,072)         (1,798)
  Proceeds from issuances of common stock               752             434 
  Payments of dividends to stockholders                (583)           (607)
  Proceeds from borrowings, net of issuance                                 
   costs                                              4,974               - 
  Repayments of borrowings                           (1,700)         (1,150)
  Excess tax benefits on the exercise of                                    
   stock options and vesting of restricted                                  
   stock-based awards                                    95              53 
  Distributions to noncontrolling interests             (31)           (163)
                                             --------------  -------------- 
        Net cash used for financing                                         
         activities                                  (2,565)         (3,231)
                                             --------------  -------------- 
                                                                            
Effect of exchange rate changes on cash and                                 
 cash equivalents                                       118            (375)
                                             --------------  -------------- 
                                                                            
Net increase (decrease) in cash and cash                                    
 equivalents                                            957          (2,877)
                                             --------------  -------------- 
                                                                            
Cash and cash equivalents at beginning of                                   
 period                                              14,955          16,163 
                                             --------------  -------------- 
                                                                            
Cash and cash equivalents at end of period   $       15,912  $       13,286 
                                             ==============  ============== 
                                                                            
                                                                            
                                                                            
                             ORACLE CORPORATION                             
                      Q2 FISCAL 2013 FINANCIAL RESULTS                      
                  FREE CASH FLOW - TRAILING 4-QUARTERS (1)                  
                               ($ in millions)                              
                                                                            
                         Fiscal 2012                    Fiscal 2013         
               ------------------------------- -----------------------------
                  Q1      Q2      Q3      Q4      Q1      Q2     Q3     Q4  
               ------- ------- ------- ------- ------- ------- ------ ------
                                                                            
GAAP Operating                                                              
 Cash Flow     $12,818 $13,129 $13,463 $13,743 $13,993 $13,533              
                                                                            
Capital                                                                     
 Expenditures                                                               
 (2)              (492)   (500)   (509)   (648)   (627)   (710)             
               ------- ------- ------- ------- ------- ------- ------ ------
                                                                            
Free Cash Flow $12,326 $12,629 $12,954 $13,095 $13,366 $12,823              
               ======= ======= ======= ======= ======= ======= ====== ======
                                                                            
% Growth over                                                               
 prior year         46%     45%     36%     22%      8%      2%             
                                                                            
               ------- ------- ------- ------- ------- ------- ------ ------
                                                                            
GAAP Net                                                                    
 Income        $ 9,035 $ 9,356 $ 9,738 $ 9,981 $10,175 $10,564              
                                                                            
Free Cash Flow                                                              
 as a % of Net                                                              
 Income            136%    135%    133%    131%    131%    121%             
               ------- ------- ------- ------- ------- ------- ------ ------
                                                                            
(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.                                                                   
                                                                            
                                                                            
                                                                            
                             ORACLE CORPORATION                             
                      Q2 FISCAL 2013 FINANCIAL RESULTS                      
          SUPPLEMENTAL ANALYSIS OF GAAP REVENUES AND HEADCOUNT (1)          
                               ($ in millions)                              
                                                                            
                                              Fiscal 2012                   
                           ------------------------------------------------ 
                              Q1        Q2        Q3        Q4       TOTAL  
                           --------  --------  --------  --------  -------- 
REVENUES                                                                    
  New software licenses                                                     
   and cloud software                                                       
   subscriptions           $  1,498  $  2,048  $  2,374  $  3,985  $  9,906 
  Software license updates                                                  
   and product support        4,022     3,986     4,051     4,152    16,210 
                           --------  --------  --------  --------  -------- 
    Software Revenues         5,520     6,034     6,425     8,137    26,116 
      
                                                                      
  Hardware systems                                                          
   products                   1,029       953       869       977     3,827 
  Hardware systems support      645       625       604       600     2,475 
                           --------  --------  --------  --------  -------- 
    Hardware Systems                                                        
     Revenues                 1,674     1,578     1,473     1,577     6,302 
                                                                            
    Services Revenues         1,180     1,180     1,141     1,202     4,703 
                                                                            
                           --------  --------  --------  --------  -------- 
      Total Revenues       $  8,374  $  8,792  $  9,039  $ 10,916  $ 37,121 
                           ========  ========  ========  ========  ======== 
                                                                            
AS REPORTED REVENUE GROWTH                                                  
 RATES                                                                      
  New software licenses                                                     
   and cloud software                                                       
   subscriptions                17%        2%        7%        7%        7% 
  Software license updates                                                  
   and product support          17%        9%        8%        5%       10% 
    Software Revenues           17%        7%        8%        6%        9% 
                                                                            
  Hardware systems                                                          
   products                     (5%)     (14%)     (16%)     (16%)     (13%)
  Hardware systems support       4%       (2%)      (4%)     (11%)      (3%)
    Hardware Systems                                                        
     Revenues                   (1%)     (10%)     (11%)     (14%)      (9%)
                                                                            
    Services Revenues           10%        0%        0%       (4%)       1% 
                                                                            
      Total Revenues            12%        2%        3%        1%        4% 
                                                                            
CONSTANT CURRENCY GROWTH                                                    
 RATES (2)                                                                  
  New software licenses                                                     
   and cloud software                                                       
   subscriptions                11%        3%        8%       11%        8% 
  Software license updates                                                  
   and product support          10%        9%        9%        8%        9% 
    Software Revenues           11%        7%        9%       10%        9% 
                                                                            
  Hardware systems                                                          
   products                    (11%)     (14%)     (16%)     (13%)     (14%)
  Hardware systems support      (3%)      (3%)      (3%)      (7%)      (4%)
    Hardware Systems                                                        
     Revenues                   (8%)     (10%)     (11%)     (11%)     (10%)
                                                                            
    Services Revenues            5%        0%        1%        0%        1% 
                                                                            
      Total Revenues             5%        2%        4%        5%        4% 
                                                                            
                           -------------------------------------------------
                                                                            
GEOGRAPHIC REVENUES                                                         
                                                                            
  REVENUES                                                                  
    Americas               $  4,226  $  4,532  $  4,707  $  5,771  $ 19,236 
    Europe, Middle East &                                                   
     Africa                   2,704     2,756     2,787     3,314    11,561 
    Asia Pacific              1,444     1,504     1,545     1,831     6,324 
                           --------  --------  --------  --------  -------- 
      Total Revenues       $  8,374  $  8,792  $  9,039  $ 10,916  $ 37,121 
                           ========  ========  ========  ========  ======== 
                                                                            
                           -------------------------------------------------
                                                                            
HEADCOUNT                                                                   
                                                                            
  GEOGRAPHIC AREA                                                           
    Americas                 46,338    46,672    47,884    48,901           
    Europe, Middle East &                                                   
     Africa                  22,210    22,725    22,852    22,957           
    Asia Pacific             40,840    41,901    42,908    43,308           
                           --------  --------  --------  --------  -------- 
      Total Company         109,388   111,298   113,644   115,166           
                           ========  ========  ========  ========  ======== 
                                                                            
 
                                            Fiscal 2013                 
                           -------------------------------------------- 
                              Q1        Q2        Q3      Q4     TOTAL  
                           --------  --------  ------- ------- -------- 
REVENUES                                                                
  New software licenses                                                 
   and cloud software                                                   
   subscriptions           $  1,574  $  2,389                  $  3,963 
  Software license updates                                              
   and product support        4,140     4,260                     8,400 
                           --------  --------  ------- ------- -------- 
    Software Revenues         5,714     6,649                    12,363 
                                                                        
  Hardware systems                                                      
   products                     779       734                     1,513 
  Hardware systems support      574       587                     1,161 
                           --------  --------  ------- ------- -------- 
    Hardware Systems                                                    
     Revenues                 1,353     1,321                     2,674 
                                                                        
    Services Revenues         1,114     1,124                     2,238 
                                                                        
                           --------  --------  ------- ------- -------- 
      Total Revenues       $  8,181  $  9,094                  $ 17,275 
                           ========  ========  ======= ======= ======== 
                                                                        
AS REPORTED REVENUE GROWTH                                              
 RATES                                                                  
  New software licenses                 
                                
   and cloud software                                                   
   subscriptions                 5%       17%                       12% 
  Software license updates                                              
   and product support           3%        7%                        5% 
    Software Revenues            4%       10%                        7% 
                                                                        
  Hardware systems                                                      
   products                    (24%)     (23%)                     (24%)
  Hardware systems support     (11%)      (6%)                      (9%)
    Hardware Systems                                                    
     Revenues                  (19%)     (16%)                     (18%)
                                                                        
    Services Revenues           (6%)      (5%)                      (5%)
                                                                        
      Total Revenues            (2%)       3%                        1% 
                                                                        
CONSTANT CURRENCY GROWTH                                                
 RATES (2)                                                              
  New software licenses                                                 
   and cloud software                                                   
   subscriptions                10%       18%                       14% 
  Software license updates                                              
   and product support           8%        8%                        8% 
    Software Revenues            9%       11%                       10% 
                                                                        
  Hardware systems                                                      
   products                    (21%)     (23%)                     (22%)
  Hardware systems support      (6%)      (5%)                      (6%)
    Hardware Systems                                                    
     Revenues                  (15%)     (16%)                     (15%)
                                                                        
    Services Revenues            0%       (3%)                      (2%)
                                                                        
      Total Revenues             3%        5%                        4% 
                                                                        
                          --------------------------------------------- 
                                                                        
GEOGRAPHIC REVENUES                                                     
                                                                        
  REVENUES                                                              
    Americas               $  4,324  $  4,787                  $  9,111 
    Europe, Middle East &                                               
     Africa                   2,383     2,701                     5,084 
    Asia Pacific              1,474     1,606                     3,080 
                           --------  --------  ------- ------- -------- 
      Total Revenues       $  8,181  $  9,094                  $ 17,275 
                           ========  ========  ======= ======= ======== 
                                                                        
                          --------------------------------------------- 
                                                                        
HEADCOUNT                                                               
                                                                        
  GEOGRAPHIC AREA                                                       
    Americas                 49,145    49,584                           
    Europe, Middle East &                                               
     Africa                  22,584    22,594                           
    Asia Pacific             44,170    45,051                           
                           --------  --------  ------- ------- -------- 
      Total Company         115,899   117,229                           
                           ========  ========  ======= ======= ======== 
                                                                        
                                                                            
(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, 2012 and 2011 for the fiscal 2013 and fiscal 
    2012 constant currency growth rate calculations presented, respectively,
    rather than the actual exchange rates in effect during the respective   
    periods.                                                                
                                                                            
                                                                            
                                                                            
                             ORACLE CORPORATION                             
                      Q2 FISCAL 2013 FINANCIAL RESULTS                      
                SUPPLEMENTAL GEOGRAPHIC REVENUES ANALYSIS (1)               
                               ($ in millions)                              
                                                                            
                                              Fiscal 2012                   
                           ------------------------------------------------ 
                              Q1        Q2        Q3        Q4       TOTAL  
                           --------  --------  --------  --------  -------- 
                                                                            
AMERICAS                                                                    
                                                                            
  New software licenses                                                     
   and cloud software                                                       
   subscriptions           $    727  $  1,027  $  1,228  $  2,126  $  5,107 
                           ========  ========  ========  ========  ======== 
  Hardware systems                                                          
   products                $    475  $    496  $    410  $    498  $  1,880 
                           ========  ========  ========  ========  ======== 
                                                                            
AS REPORTED GROWTH RATES                                                    
  New software licenses                                                     
   and cloud software                                                       
   subscriptions                10%        0%       11%       14%       10% 
  Hardware systems                                                          
   products                    (12%)     (17%)     (19%)     (17%)     (16%)
                                                                            
CONSTANT CURRENCY GROWTH                                                    
 RATES (2)                                                                  
  New software licenses                                                     
   and cloud software                                                       
   subscriptions                 9%        1%       11%       16%       11% 
  Hardware systems                                                          
   products                    (13%)     (17%)     (18%)     (16%)     (16%)
                                                                            
                           -------------------------------------------------
                                                                            
EUROPE / MIDDLE EAST /                                                      
 AFRICA                                                                     
                                                                            
  New software licenses                                                     
   and cloud software                                                       
   subscriptions           $    440  $    584  $    693  $  1,166  $  2,884 
                           ========  ========  ========  ========  ======== 
  Hardware systems                                                          
   products                $    344  $    272  $    265  $    260  $  1,140 
                           ========  ========  ========  ========  ======== 
                                                                            
AS REPORTED GROWTH RATES                                                    
  New software licenses                                                     
   and cloud software                                                       
   subscriptions                25%        2%       (1%)      (5%)       1% 
  Hardware systems                                                          
   products                      2%      (17%)     (20%)     (24%)     (15%)
                                                                            
CONSTANT CURRENCY GROWTH                                                    
 RATES (2)                                                                  
  New software licenses                                                     
   and cloud software                                                       
   subscriptions                15%        3%        1%        2%        4% 
  Hardware systems                                                          
   products                    (11%)     (17%)     (18%)     (18%)     (16%)
                                                                            
                           -------------------------------------------------
                                                                            
ASIA PACIFIC                                                                
                                                                            
  New software licenses                                                     
   and cloud software                                                       
   subscriptions           $    331  $    437  $    453  $    693  $  1,915 
                           ========  ========  ========  ========  ======== 
  Hardware systems                                                          
   products                $    210  $    185  $    194  $    219  $    807 
                           ========  ========  ========  ========  ======== 
                                                                            
AS REPORTED GROWTH RATES                                                    
  New software licenses                                                     
   and cloud software                                                       
   subscriptions                20%       11%       13%        8%       12% 
  Hardware systems                                                          
   products                      6%        2%       (3%)       1%        1% 
                                                                            
CONSTANT CURRENCY GROWTH                                                    
 RATES (2)                                                                  
  New software licenses                                                     
   and cloud software                                                       
   subscriptions                 9%        8%       11%       13%       11% 
  Hardware systems                                                          
   products                     (5%)      (1%)      (6%)       1%       (3%)
                                                                            
                           -------------------------------------------------
                                                                            
TOTAL COMPANY                                                               
                                                                            
  New software licenses                                                     
   and cloud software                                                       
   subscriptions           $  1,498  $  2,048  $  2,374  $  3,985  $  9,906 
                           ========  ========  ========  ========  ======== 
  Hardware systems                                                          
   products                $  1,029  $    953  $    869  $    977  $  3,827 
                           ========  ========  ========  ========  ======== 
                                                                            
AS REPORTED GROWTH RATES                                                    
  New software licenses                                                     
   and cloud software                                                       
   subscriptions                17%        2%        7%        7%        7% 
  Hardware systems                                                          
   products                     (5%)     (14%)     (16%)     (16%)     (13%)
                                                                            
CONSTANT CURRENCY GROWTH                                                    
 RATES (2)                                                                  
  New software licenses                                                     
   and cloud software                                                       
   subscriptions                11%        3%        8%       11%        8% 
  Hardware systems                                                          
   products                    (11%)     (14%)     (16%)     (13%)     (14%)
                                                                            
 
                                            Fiscal 2013                 
                           -------------------------------------------- 
                              Q1        Q2        Q3      Q4     TOTAL  
                           --------  --------  ------- ------- -------- 
                                                                        
AMERICAS                                                                
                                                                        
  New software licenses                                                 
   and cloud software                                                   
   subscriptions           $    814  $  1,253                  $  2,066 
                           ========  ========  ======= ======= ======== 
  Hardware systems                                                      
   products                $    380  $    370                  $    750 
                           ========  ========  ======= ======= ======== 
                                                                        
AS REPORTED GROWTH RATES                                                
  New software licenses                                                 
   and cloud software                                                   
   subscriptions                12%       22%                       18% 
  Hardware systems                                                      
   products                    (20%)     (25%)                     (23%)
                                                                        
CONSTANT CURRENCY GROWTH                                                
 RATES (2)                                                              
  New software licenses                                                 
   and cloud software                                                   
   subscriptions                14%       22%                       19% 
  Hardware systems                                                      
   products                    (19%)     (25%)                     (22%)
                                                                        
                          --------------------------------------------- 
                                                                        
EUROPE / MIDDLE EAST /                                                  
 AFRICA                                                                 
                                                                        
  New software licenses                                                 
   and cloud software                                                   
   subscriptions           $    403  $    641                  $  1,044 
                           ========  ========  ======= ======= ======== 
  Hardware systems                                                      
   products                $    214  $    198                  $    413 
                           ========  ========  ======= ======= ======== 
                                                                        
AS REPORTED GROWTH RATES                                                
  New software licenses                                                 
   and cloud software                                                   
   subscriptions                (8%)      10%                        2% 
  Hardware systems                                                      
   products                    (38%)     (27%)                     (33%)
                                                                        
CONSTANT CURRENCY GROWTH                                                
 RATES (2)                                                              
  New software licenses                                                 
   and cloud software                                                   
   subscriptions                 1%       12%                        8% 
  Hardware systems                                                      
   products                    (30%)     (25%)                     (28%)
                                                                        
                          --------------------------------------------- 
                                                                        
ASIA PACIFIC                                                            
                                                                        
  New software licenses                                                 
   and cloud software                                                   
   subscriptions           $    357  $    495                  $    853 
                           ========  ========  ======= ======= ======== 
  Hardware systems                                                      
   products                $    185  $    166                  $    350 
                           ========  ========  ======= ======= ======== 
                                                                        
AS REPORTED GROWTH RATES                                                
  New software licenses                                                 
   and cloud software                                                   
   subscriptions                 8%       13%                       11% 
  Hardware systems                                                      
   products                    (12%)     (10%)                     (11%)
                                                                        
CONSTANT CURRENCY GROWTH                                                
 RATES (2)                                                              
  New software licenses                                                 
   and cloud software                                                   
   subscriptions                12%       13%                       13% 
  Hardware systems                                                      
   products                    (10%)     (12%)                     (11%)
                                                                        
                          --------------------------------------------- 
                                                                        
TOTAL COMPANY                                                           
                                                                        
  New software licenses                                                 
   and cloud software                                                   
   subscriptions           $  1,574  $  2,389                  $  3,963 
                           ========  ========  ======= ======= ======== 
  Hardware systems                                                      
   products                $    779  $    734                  $  1,513 
                           ========  ========  ======= ======= ======== 
                                                                        
AS REPORTED GROWTH RATES                                                
  New software licenses                                                 
   and cloud software                                                   
   subscriptions                 5%       17%                       12% 
  Hardware systems                                                      
   products                    (24%)     (23%)                     (24%)
                                                                        
CONSTANT CURRENCY GROWTH                                                
 RATES (2)                                                              
  New software licenses                                                 
   and cloud software                                                   
   subscriptions                10%       18%                       14% 
  Hardware systems                                                      
   products                    (21%)     (23%)                     (22%)
                                                                        
(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, 2012 and 2011 for the fiscal 2013 and fiscal 
    2012 constant currency growth rate calculations presented, respectively,
    rather than the actual exchange rates in effect during the respective   
    periods.                                                                
                                                                            
                                                                            
                                                                            
                                                                  APPENDIX A
                                                                            
                             ORACLE CORPORATION                             
                      Q2 FISCAL 2013 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: 


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

  
Contact:
Ken Bond
Oracle Investor Relations
1.650.607.0349
ken.bond@oracle.com 
Deborah Hellinger
Oracle Corporate Communications
1.212.508.7935
deborah.hellinger@oracle.com