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Oracle Becomes the Second Largest Cloud SaaS Company in the World

Q4 SaaS and PaaS Subscriptions Up 25% to $322 Million, Q4 IaaS Subscription Revenue Up 13% to $128 Million

REDWOOD SHORES, CA -- (Marketwired) -- 06/19/14 -- Oracle Corporation (NYSE: ORCL) today announced that fiscal 2014 Q4 total revenues were up 3% to $11.3 billion. Software and Cloud revenues were up 4% to $8.9 billion. GAAP Cloud software-as-a-service (SaaS) and platform-as-a-service (PaaS) revenues were up 25% to $322 million, while non-GAAP SaaS and PaaS revenues were up 23% to $327 million. In addition, Cloud infrastructure-as-a-service (IaaS) revenues were up 13% to $128 million. New software licenses revenues were unchanged at $3.8 billion. Software license updates and product support revenues were up 7% to $4.7 billion. Overall hardware systems revenues were up 2% to $1.5 billion with hardware systems products up 2% to $870 million, and hardware systems support up 2% to $596 million.

In Q4, both GAAP and non-GAAP earnings per share were lowered by $0.02 due to a non-operating loss caused by exchange rate changes in Venezuela. Furthermore, last year's Q4 GAAP earnings per share increased $0.04 because of a $269 million acquisition price reduction. As a result of these two factors, Q4 GAAP earnings per share were unchanged at $0.80 compared with last year, while GAAP net income was down 4% to $3.6 billion, and GAAP operating income was down 2% to $4.9 billion. Q4 GAAP operating margin was 43% in the quarter. Non-GAAP earnings per share were up 6% to $0.92, but would have been $0.94 if not for the currency loss in Venezuela. Non-GAAP net income was up 2% to $4.2 billion while non-GAAP operating income was up 3% to $5.8 billion. The non-GAAP operating margin was 51%. GAAP operating cash flow on a trailing twelve-month basis was $14.9 billion.

For fiscal year 2014, total revenues were up 3% at $38.3 billion. GAAP Software and Cloud revenues were up 5%. GAAP Cloud SaaS and PaaS revenues were up 23% to $1.1 billion while Cloud IaaS revenues were $456 million. New software licenses revenues were unchanged at $9.4 billion while software license updates and product support revenues were up 6% to $18.2 billion. Total hardware system revenues were flat at $5.4 billion. GAAP operating income was up 1% to $14.8 billion, and GAAP operating margin was 39%. Non-GAAP operating income was up 3% to $18.1 billion, and non-GAAP operating margin was 47%. GAAP net income was unchanged at $11.0 billion, while non-GAAP net income was up 2% to $13.2 billion. GAAP earnings per share were $2.38, up 5% compared to last year while non-GAAP earnings per share were $2.87, up 7%.

"Our cloud subscription business is now approaching a run rate of $2 billion a year," said Oracle President and CFO Safra Catz. "As our business has transitioned, more software revenues are being recognized over the life of a subscription rather than upfront. We're making this transition to cloud subscriptions and ratable revenue recognition while continuously increasing our top-line revenue and our bottom-line profits year-after-year."

"We have transformed Sun's commodity hardware business into a profitable and growing Engineered Systems business," said Oracle President Mark Hurd. "Our overall hardware business grew 2% in constant currency this past year. We saw record levels of Engineered Systems shipments and expect to deliver our 10,000th unit in Q1."

"Oracle is now the second largest SaaS company in the world," said Oracle CEO Larry Ellison. "In SaaS, we're in front of everybody but salesforce.com. In IaaS we're larger and more profitable than Rackspace. We have by far the most complete portfolio of modern SaaS and PaaS products in the industry: CRM: Sales, Service & Marketing; HCM: HR, Payroll & Talent; ERP: Accounting, Procurement, Supply Chain & more. All these SaaS products run on the world's most powerful PaaS: the Oracle in-memory multitenant database and Java. We plan to increase our focus on the Cloud and become number one in both the SaaS and the PaaS businesses."

The Board of Directors declared a quarterly cash dividend of $0.12 per share of outstanding common stock. This dividend will be paid to stockholders of record as of the close of business on July 9, 2014, with a payment date of July 30, 2014.

Q4 Fiscal 2014 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) 312-6699, Passcode: 822011. 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 Q4 results and Fiscal 2014 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: 1625971.

About Oracle
Oracle engineers hardware and software to work together in the cloud and in your data center. For more information about Oracle (NYSE: ORCL), visit www.oracle.com or contact Investor Relations at [email protected] 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 subscription run rate, the timing of the delivery of our 10,000th Engineered Systems unit, and our plans to increase our focus on the Cloud and become number one in SaaS and PaaS, 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 continued slow economic recovery in the U.S. and other parts of the world, 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 support contracts. (3) Our cloud computing strategy, including our Oracle Cloud Software-as-a-Service, Platform-as-a-Service and Infrastructure-as-a-Service offerings, may not be successful. (4) 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. (5) Our international sales and operations subject us to additional risks that can adversely affect our operating results, including risks relating to foreign currency gains and losses. (6) If the security measures for our software, hardware, services or Oracle Cloud offerings are compromised or if such offerings contain significant coding, manufacturing or configuration errors, we may experience reputational harm, legal claims and financial exposure. (7) We have an active acquisition program and our acquisitions may not be successful, may involve unanticipated costs or other integration issues or may disrupt our existing operations. A detailed discussion of these factors and other risks that affect our business is contained in our 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 June 19, 2014. Oracle undertakes no duty to update any statement in light of new information or future events.



                             ORACLE CORPORATION

                      Q4 FISCAL 2014 FINANCIAL RESULTS
               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                   ($ in millions, except per share data)

                        Three Months Ended May 31,
                   -----------------------------------
                                                                  % Increase
                                                                  (Decrease)
                                                                      in
                                                       % Increase  Constant
                              % of              % of   (Decrease)  Currency
                     2014   Revenues   2013   Revenues   in US $      (1)
                   -------  -------- -------  -------- ---------- ----------
REVENUES
  New software
   licenses        $ 3,769     33%   $ 3,769     35%       0%        (1%)
  Cloud software-
   as-a-service and
   platform-as-a-
   service             322     3%        257     2%        25%        25%
  Cloud
   infrastructure-
   as-a-service        128     1%        113     1%        13%        13%
  Software license
   updates and
   product support   4,695     42%     4,402     40%       7%         6%
                   -------  -------- -------  --------
    Software and
     Cloud Revenues  8,914     79%     8,541     78%       4%         4%
                   -------  -------- -------  --------
  Hardware systems
   products            870     8%        849     8%        2%         3%
  Hardware systems
   support             596     5%        582     5%        2%         2%
                   -------  -------- -------  --------
    Hardware
     Systems
     Revenues        1,466     13%     1,431     13%       2%         3%
                   -------  -------- -------  --------
    Services
     Revenues          940     8%        975     9%       (4%)       (3%)
                   -------  -------- -------  --------
      Total
       Revenues     11,320    100%    10,947    100%       3%         3%
                   -------  -------- -------  --------

OPERATING EXPENSES
  Sales and
   marketing         2,241     20%     2,125     19%       6%         5%
  Cloud software-
   as-a-service and
   platform-as-a-
   service             137     1%        101     1%        36%        35%
  Cloud
   infrastructure-
   as-a-service         84     1%         76     1%        10%        11%
  Software license
   updates and
   product support     303     3%        316     3%       (4%)       (4%)
  Hardware systems
   products            443     4%        413     4%        7%         8%
  Hardware systems
   support             205     2%        220     2%       (7%)       (6%)
  Services             759     7%        785     7%       (3%)       (3%)
  Research and
   development       1,349     12%     1,264     12%       7%         7%
  General and
   administrative      265     2%        274     2%       (3%)       (3%)
  Amortization of
   intangible
   assets              568     5%        596     5%       (5%)       (5%)
  Acquisition
   related and
   other (2)            20     0%       (257)   (2%)      108%       108%
  Restructuring         37     0%         34     0%        8%         4%
                   -------  -------- -------  --------
      Total
       Operating
       Expenses      6,411     57%     5,947     54%       8%         8%
                   -------  -------- -------  --------

OPERATING INCOME     4,909     43%     5,000     46%      (2%)       (3%)
  Interest expense    (239)   (2%)      (210)   (2%)       14%        14%
  Non-operating
   (expense)
   income, net         (81)    0%         35     0%       328%       324%
                   -------  -------- -------  --------

INCOME BEFORE
 PROVISION FOR
 INCOME TAXES        4,589     41%     4,825     44%      (5%)       (6%)
                   -------  -------- -------  --------
  Provision for
   income taxes        943     9%      1,018     9%       (7%)       (8%)
                   -------  -------- -------  --------

NET INCOME         $ 3,646     32%   $ 3,807     35%      (4%)       (5%)
                   =======  ======== =======  ========

EARNINGS PER SHARE:
  Basic            $  0.81           $  0.81
  Diluted          $  0.80           $  0.80

WEIGHTED AVERAGE
 COMMON SHARES
 OUTSTANDING:
  Basic              4,475             4,684
  Diluted            4,569             4,756

(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, 2013, 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 May 31, 2014
    compared with the corresponding prior year period increased our
    operating income by 1 percentage point.

(2) Acquisition related and other expenses for the quarter ended May 31,
    2013 included a net benefit of $269 million due to an acquisition
    related item.




                             ORACLE CORPORATION

                      Q4 FISCAL 2014 FINANCIAL RESULTS
      RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1)
                   ($ in millions, except per share data)

                                 Three Months Ended May 31,
                  --------------------------------------------------------
                    2014               2014      2013               2013
                    GAAP      Adj.   Non-GAAP    GAAP      Adj.   Non-GAAP
                  --------  -------  --------  --------  -------  --------

TOTAL REVENUES (3)
 (4)              $ 11,320  $     6  $ 11,326  $ 10,947  $    14  $ 10,961

TOTAL SOFTWARE AND
 CLOUD REVENUES
 (3)              $  8,914  $     5  $  8,919  $  8,541  $    10  $  8,551
  New software
   licenses          3,769        -     3,769     3,769        -     3,769
  Cloud software-
   as-a-service
   and platform-
   as-a-service
   (3)                 322        5       327       257        8       265
  Cloud
   infrastructure-
   as-a-service        128        -       128       113        -       113
  Software license
   updates and
   product support   4,695        -     4,695     4,402        2     4,404

TOTAL HARDWARE
 SYSTEMS REVENUES
 (4)              $  1,466  $     1  $  1,467  $  1,431  $     4  $  1,435
  Hardware systems
   products            870        -       870       849        -       849
  Hardware systems
   support (4)         596        1       597       582        4       586

TOTAL OPERATING
 EXPENSES         $  6,411  $  (841) $  5,570  $  5,947  $  (559) $  5,388
  Stock-based
   compensation
   (5)                 216     (216)        -       186     (186)        -
  Amortization of
   intangible
   assets (6)          568     (568)        -       596     (596)        -
  Acquisition
   related and
   other                20      (20)        -      (257)     257         -
  Restructuring         37      (37)        -        34      (34)        -

OPERATING INCOME  $  4,909  $   847  $  5,756  $  5,000  $   573  $  5,573

OPERATING MARGIN %      43%                51%       46%                51%

INCOME TAX EFFECTS
 (7)              $    943  $   308  $  1,251  $  1,018  $   266  $  1,284

NET INCOME        $  3,646  $   539  $  4,185  $  3,807  $   307  $  4,114

DILUTED EARNINGS
 PER SHARE        $   0.80           $   0.92  $   0.80           $   0.87

DILUTED WEIGHTED
 AVERAGE COMMON
 SHARES
 OUTSTANDING         4,569        -     4,569     4,756        -     4,756



                                        % Increase (Decrease)
                  % Increase (Decrease)  in Constant Currency
                         in US $                 (2)
                  --------------------- ---------------------
                     GAAP     Non-GAAP     GAAP     Non-GAAP
                  ---------- ---------- ---------- ----------

TOTAL REVENUES (3)
 (4)                  3%         3%         3%         3%

TOTAL SOFTWARE AND
 CLOUD REVENUES
 (3)                  4%         4%         4%         4%
  New software
   licenses           0%         0%        (1%)       (1%)
  Cloud software-
   as-a-service
   and platform-
   as-a-service
   (3)                25%        23%        25%        23%
  Cloud
   infrastructure-
   as-a-service       13%        13%        13%        13%
  Software license
   updates and
   product support    7%         7%         6%         6%

TOTAL HARDWARE
 SYSTEMS REVENUES
 (4)                  2%         2%         3%         2%
  Hardware systems
   products           2%         2%         3%         3%
  Hardware systems
   support (4)        2%         2%         2%         2%

TOTAL OPERATING
 EXPENSES             8%         3%         8%         3%
  Stock-based
   compensation
   (5)                16%         *         16%         *
  Amortization of
   intangible
   assets (6)        (5%)         *        (5%)         *
  Acquisition
   related and
   other             108%         *        108%         *
  Restructuring       8%          *         4%          *

OPERATING INCOME     (2%)        3%        (3%)        2%

OPERATING MARGIN % (231) bp.   (2) bp.   (255) bp.  (24) bp.

INCOME TAX EFFECTS
 (7)                 (7%)       (3%)       (8%)       (4%)

NET INCOME           (4%)        2%        (5%)        1%

DILUTED EARNINGS
 PER SHARE            0%         6%        (1%)        5%

DILUTED WEIGHTED
 AVERAGE COMMON
 SHARES
 OUTSTANDING         (4%)       (4%)       (4%)       (4%)

(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, 2013, 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 May 31, 2014, approximately $3 million in estimated revenues
     related to assumed cloud software-as-a-service and platform-as-a-
     service contracts will not be recognized for fiscal 2015 due to
     business combination accounting rules.

(4)  As of May 31, 2014, approximately $2 million in estimated revenues
     related to hardware systems support contracts will not be recognized
     for fiscal 2015 due to business combination accounting rules.

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

                              Three Months Ended       Three Months Ended
                                 May 31, 2014             May 31, 2013
                           ------------------------ ------------------------
                                              Non-                     Non-
                             GAAP    Adj.     GAAP    GAAP    Adj.     GAAP
                           ------- -------  ------- ------- -------  -------
     Sales and marketing   $    46 $   (46) $     - $    33 $   (33) $     -
     Cloud software-as-a-
      service and platform-
      as-a-service               3      (3)       -       2      (2)       -
     Cloud infrastructure-
      as-a-service               1      (1)       -       2      (2)       -
     Software license
      updates and product
      support                    6      (6)       -       5      (5)       -
     Hardware systems
      products                   1      (1)       -       1      (1)       -
     Hardware systems
      support                    1      (1)       -       1      (1)       -
     Services                   12     (12)       -       6      (6)       -
     Research and
      development              101    (101)       -      93     (93)       -
     General and
      administrative            45     (45)       -      43     (43)       -
                           ------- -------  ------- ------- -------  -------
       Subtotal                216    (216)       -     186    (186)       -
                           ------- -------  ------- ------- -------  -------
     Acquisition related
      and other                  7      (7)       -       4      (4)       -
                           ------- -------  ------- ------- -------  -------
       Total stock-based
        compensation       $   223 $  (223) $     - $   190 $  (190) $     -
                           ======= =======  ======= ======= =======  =======

(6)  Estimated future annual amortization expense related to intangible
     assets as of May 31, 2014 was as follows:

     Fiscal 2015           $ 1,934
     Fiscal 2016             1,337
     Fiscal 2017               741
     Fiscal 2018               607
     Fiscal 2019               508
     Thereafter                980
                           -------
       Total intangible
        assets subject to
        amortization         6,107
     In-process research
      and development           30
                           -------
       Total intangible
        assets, net        $ 6,137
                           =======

(7)  Income tax effects were calculated reflecting an effective GAAP tax
     rate of 20.5% and 21.1% in the fourth quarter of fiscal 2014 and 2013,
     respectively, and an effective non-GAAP tax rate of 23.0% and 23.8% in
     the fourth quarter of fiscal 2014 and 2013, respectively. The
     differences between our GAAP and non-GAAP tax rates in the fourth
     quarter of fiscal 2014 and 2013 were primarily due to the net tax
     effects of acquisition related items, including the tax effects of
     amortization of intangible assets.

*    Not meaningful



                             ORACLE CORPORATION

                 FISCAL 2014 YEAR TO DATE FINANCIAL RESULTS
               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                   ($ in millions, except per share data)

                            Year Ended May 31,
                   -----------------------------------
                                                                  % Increase
                                                                  (Decrease)
                                                                      in
                                                       % Increase  Constant
                              % of              % of   (Decrease)  Currency
                     2014   Revenues   2013   Revenues   in US $      (1)
                   -------  -------- -------  -------- ---------- ----------
REVENUES
  New software
   licenses        $ 9,416     25%   $ 9,411     25%       0%         1%
  Cloud software-
   as-a-service and
   platform-as-a-
   service           1,121     3%        910     3%        23%        24%
  Cloud
   infrastructure-
   as-a-service        456     1%        457     1%        0%         1%
  Software license
   updates and
   product support  18,206     47%    17,142     46%       6%         7%
                   -------  -------- -------  --------
    Software and
     Cloud Revenues 29,199     76%    27,920     75%       5%         5%
                   -------  -------- -------  --------
  Hardware systems
   products          2,976     8%      3,033     8%       (2%)       (1%)
  Hardware systems
   support           2,396     6%      2,313     6%        4%         5%
                   -------  -------- -------  --------
    Hardware
     Systems
     Revenues        5,372     14%     5,346     14%       0%         2%
                   -------  -------- -------  --------
    Services
     Revenues        3,704     10%     3,914     11%      (5%)       (4%)
                   -------  -------- -------  --------
      Total
       Revenues     38,275    100%    37,180    100%       3%         4%
                   -------  -------- -------  --------

OPERATING EXPENSES
  Sales and
   marketing         7,567     20%     7,062     19%       7%         8%
  Cloud software-
   as-a-service and
   platform-as-a-
   service             455     1%        327     1%        39%        40%
  Cloud
   Infrastructure-
   as-a-service        308     1%        304     1%        1%         3%
  Software license
   updates and
   product support   1,162     3%      1,175     3%       (1%)        1%
  Hardware systems
   products          1,521     4%      1,501     4%        1%         3%
  Hardware systems
   support             836     2%        890     2%       (6%)       (5%)
  Services           2,954     8%      3,182     9%       (7%)       (6%)
  Research and
   development       5,151     13%     4,850     13%       6%         7%
  General and
   administrative    1,038     3%      1,072     3%       (3%)       (2%)
  Amortization of
   intangible
   assets            2,300     6%      2,385     7%       (4%)       (4%)
  Acquisition
   related and
   other (2)            41     0%       (604)   (2%)      107%       107%
  Restructuring        183     0%        352     1%       (48%)      (49%)
                   -------  -------- -------  --------
      Total
       Operating
       Expenses     23,516     61%    22,496     61%       5%         6%
                   -------  -------- -------  --------

OPERATING INCOME    14,759     39%    14,684     39%       1%         1%
  Interest expense    (914)   (3%)      (797)   (2%)       15%        15%
  Non-operating
   (expense)
   income, net        (141)    0%         11     0%      1,343%     1,749%
                   -------  -------- -------  --------

INCOME BEFORE
 PROVISION FOR
 INCOME TAXES       13,704     36%    13,898     37%      (1%)        0%
                   -------  -------- -------  --------
  Provision for
   income taxes      2,749     7%      2,973     8%       (7%)       (6%)
                   -------  -------- -------  --------

NET INCOME         $10,955     29%   $10,925     29%       0%         1%
                   =======  ======== =======  ========

EARNINGS PER SHARE:
  Basic            $  2.42           $  2.29
  Diluted          $  2.38           $  2.26

WEIGHTED AVERAGE
 COMMON SHARES
 OUTSTANDING:
  Basic              4,528             4,769
  Diluted            4,604             4,844

(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, 2013, 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 year ended May 31, 2014 compared
    with the corresponding prior year period decreased our revenues by 1
    percentage point and operating expenses by 1 percentage point.

(2) Acquisition related and other expenses for the year ended May 31, 2013
    included a benefit of $306 million related to certain litigation and a
    net benefit of $387 million due to an acquisition related item.



                             ORACLE CORPORATION

                 FISCAL 2014 YEAR TO DATE FINANCIAL RESULTS
      RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1)
                   ($ in millions, except per share data)

                                     Year Ended May 31,
                  --------------------------------------------------------
                    2014               2014      2013               2013
                    GAAP      Adj.   Non-GAAP    GAAP      Adj.   Non-GAAP
                  --------  -------  --------  --------  -------  --------

TOTAL REVENUES (3)
 (4)              $ 38,275  $    31  $ 38,306  $ 37,180  $    73  $ 37,253

TOTAL SOFTWARE AND
 CLOUD REVENUES
 (3)              $ 29,199  $    20  $ 29,219  $ 27,920  $    59  $ 27,979
  New software
   licenses          9,416        -     9,416     9,411        -     9,411
  Cloud software-
   as-a-service
   and platform-
   as-a-service
   (3)               1,121       17     1,138       910       45       955
  Cloud
   infrastructure-
   as-a-service        456        -       456       457        -       457
  Software license
   updates and
   product support  18,206        3    18,209    17,142       14    17,156

TOTAL HARDWARE
 SYSTEMS REVENUES
 (4)              $  5,372  $    11  $  5,383  $  5,346  $    14  $  5,360
  Hardware systems
   products          2,976        -     2,976     3,033        -     3,033
  Hardware systems
   support (4)       2,396       11     2,407     2,313       14     2,327

TOTAL OPERATING
 EXPENSES         $ 23,516  $(3,319) $ 20,197  $ 22,496  $(2,855) $ 19,641
  Stock-based
   compensation
   (5)                 795     (795)        -       722     (722)        -
  Amortization of
   intangible
   assets (6)        2,300   (2,300)        -     2,385   (2,385)        -
  Acquisition
   related and
   other                41      (41)        -      (604)     604         -
  Restructuring        183     (183)        -       352     (352)        -

OPERATING INCOME  $ 14,759  $ 3,350  $ 18,109  $ 14,684  $ 2,928  $ 17,612

OPERATING MARGIN %      39%                47%       39%                47%

INCOME TAX EFFECTS
 (7)              $  2,749  $ 1,091  $  3,840  $  2,973  $   896  $  3,869

NET INCOME        $ 10,955  $ 2,259  $ 13,214  $ 10,925  $ 2,032  $ 12,957

DILUTED EARNINGS
 PER SHARE        $   2.38           $   2.87  $   2.26           $   2.68

DILUTED WEIGHTED
 AVERAGE COMMON
 SHARES
 OUTSTANDING         4,604        -     4,604     4,844        -     4,844



                                        % Increase (Decrease)
                  % Increase (Decrease)  in Constant Currency
                         in US $                 (2)
                  --------------------- ---------------------
                     GAAP     Non-GAAP     GAAP     Non-GAAP
                  ---------- ---------- ---------- ----------

TOTAL REVENUES (3)
 (4)                  3%         3%         4%         4%

TOTAL SOFTWARE AND
 CLOUD REVENUES
 (3)                  5%         4%         5%         5%
  New software
   licenses           0%         0%         1%         1%
  Cloud software-
   as-a-service
   and platform-
   as-a-service
   (3)                23%        19%        24%        20%
  Cloud
   infrastructure-
   as-a-service       0%         0%         1%         1%
  Software license
   updates and
   product support    6%         6%         7%         7%

TOTAL HARDWARE
 SYSTEMS REVENUES
 (4)                  0%         0%         2%         2%
  Hardware systems
   products          (2%)       (2%)       (1%)       (1%)
  Hardware systems
   support (4)        4%         3%         5%         5%

TOTAL OPERATING
 EXPENSES             5%         3%         6%         4%
  Stock-based
   compensation
   (5)                10%         *         10%         *
  Amortization of
   intangible
   assets (6)        (4%)         *        (4%)         *
  Acquisition
   related and
   other             107%         *        107%         *
  Restructuring      (48%)        *        (49%)        *

OPERATING INCOME      1%         3%         1%         4%

OPERATING MARGIN % (93) bp.     0 bp.    (94) bp.    (8) bp.

INCOME TAX EFFECTS
 (7)                 (7%)       (1%)       (6%)        0%

NET INCOME            0%         2%         1%         3%

DILUTED EARNINGS
 PER SHARE            5%         7%         7%         8%

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, 2013, 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 May 31, 2014, approximately $3 million in estimated revenues
     related to assumed cloud software-as-a-service and platform-as-a-
     service contracts will not be recognized for fiscal 2015 due to
     business combination accounting rules.

(4)  As of May 31, 2014, approximately $2 million in estimated revenues
     related to hardware systems support contracts will not be recognized
     for fiscal 2015 due to business combination accounting rules.

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

                                  Year Ended               Year Ended
                                 May 31, 2014             May 31, 2013
                           ------------------------ ------------------------
                                              Non-                     Non-
                             GAAP    Adj.     GAAP    GAAP    Adj.     GAAP
                           ------- -------  ------- ------- -------  -------
     Sales and marketing   $   165 $  (165) $     - $   137 $  (137) $     -
     Cloud software-as-a-
      service and platform-
      as-a-service               8      (8)       -      10     (10)       -
     Cloud infrastructure-
      as-a-service               4      (4)       -       8      (8)       -
     Software license
      updates and product
      support                   22     (22)       -      20     (20)       -
     Hardware systems
      products                   5      (5)       -       3      (3)       -
     Hardware systems
      support                    6      (6)       -       5      (5)       -
     Services                   29     (29)       -      23     (23)       -
     Research and
      development              385    (385)       -     352    (352)       -
     General and
      administrative           171    (171)       -     164    (164)       -
                           ------- -------  ------- ------- -------  -------
       Subtotal                795    (795)       -     722    (722)       -
                           ------- -------  ------- ------- -------  -------
     Acquisition related
      and other                 10     (10)       -      33     (33)       -
                           ------- -------  ------- ------- -------  -------
       Total stock-based
        compensation       $   805 $  (805) $     - $   755 $  (755) $     -
                           ======= =======  ======= ======= =======  =======

(6)  Estimated future annual amortization expense related to intangible
     assets as of May 31, 2014 was as follows:
     Fiscal 2015           $ 1,934
     Fiscal 2016             1,337
     Fiscal 2017               741
     Fiscal 2018               607
     Fiscal 2019               508
     Thereafter                980
                           -------
       Total intangible
        assets subject to
        amortization         6,107
     In-process research
      and development           30
                           -------
       Total intangible
        assets, net        $ 6,137
                           =======

(7)  Income tax effects were calculated reflecting an effective GAAP tax
     rate of 20.1% and 21.4% in fiscal 2014 and 2013, respectively, and an
     effective non-GAAP tax rate of 22.5% and 23.0% in fiscal 2014 and 2013,
     respectively. The differences between our GAAP and non-GAAP tax rates
     in fiscal 2014 and 2013 were primarily due to the net tax effects of
     acquisition related items, including the tax effects of amortization of
     intangible assets.

*    Not meaningful




                             ORACLE CORPORATION

                        FISCAL 2014 FINANCIAL RESULTS
                    CONDENSED CONSOLIDATED BALANCE SHEETS
                               ($ in millions)

                                                      May 31,      May 31,
                                                       2014         2013
                                                   ------------ ------------
ASSETS

  Current Assets:
    Cash and cash equivalents                      $     17,769 $     14,613
    Marketable securities                                21,050       17,603
    Trade receivables, net                                6,087        6,049
    Inventories                                             189          240
    Deferred tax assets                                     914          974
    Prepaid expenses and other current assets             2,129        2,213
                                                   ------------ ------------
      Total Current Assets                               48,138       41,692

  Non-Current Assets:
    Property, plant and equipment, net                    3,061        3,053
    Intangible assets, net                                6,137        6,640
    Goodwill                                             29,652       27,343
    Deferred tax assets                                     837          766
    Other assets                                          2,519        2,318
                                                   ------------ ------------
      Total Non-Current Assets                           42,206       40,120
                                                   ------------ ------------

TOTAL ASSETS                                       $     90,344 $     81,812
                                                   ============ ============

LIABILITIES AND EQUITY

  Current Liabilities:
    Notes payable, current and other current
     borrowings                                    $      1,508 $          -
    Accounts payable                                        471          419
    Accrued compensation and related benefits             1,940        1,851
    Income taxes payable                                    416          911
    Deferred revenues                                     7,269        7,118
    Other current liabilities                             2,785        2,573
                                                   ------------ ------------
      Total Current Liabilities                          14,389       12,872

  Non-Current Liabilities:
    Notes payable and other non-current borrowings       22,667       18,494
    Income taxes payable                                  4,184        3,899
    Other non-current liabilities                         1,657        1,402
                                                   ------------ ------------
      Total Non-Current Liabilities                      28,508       23,795

  Equity                                                 47,447       45,145
                                                   ------------ ------------

TOTAL LIABILITIES AND EQUITY                       $     90,344 $     81,812
                                                   ============ ============



                             ORACLE CORPORATION

                       FISCAL 2014 FINANCIAL RESULTS
              CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                              ($ in millions)

                                                       Year Ended May 31,
                                                     ----------------------
                                                        2014        2013
                                                     ----------  ----------
Cash Flows From Operating Activities:

  Net income                                         $   10,955  $   10,925
  Adjustments to reconcile net income to net cash
   provided by operating activities:
    Depreciation                                            608         546
    Amortization of intangible assets                     2,300       2,385
    Deferred income taxes                                  (248)       (117)
    Stock-based compensation                                805         755
    Tax benefits on the exercise of stock options
     and vesting of restricted stock-based awards           480         410
    Excess tax benefits on the exercise of stock
     options and vesting of restricted stock-based
     awards                                                (250)       (241)
    Other, net                                              311         155
    Changes in operating assets and liabilities, net
     of effects from acquisitions:
      Decrease in trade receivables, net                    146         385
      Decrease (increase) in inventories                     57         (66)
      Increase in prepaid expenses and other assets        (143)       (555)
      Increase (decrease) in accounts payable and
       other liabilities                                     48        (541)
      (Decrease) increase in income taxes payable          (320)         35
      Increase in deferred revenues                         172         148
                                                     ----------  ----------

        Net cash provided by operating activities        14,921      14,224
                                                     ----------  ----------

Cash Flows From Investing Activities:
  Purchases of marketable securities and other
   investments                                          (32,316)    (32,160)
  Proceeds from maturities and sales of marketable
   securities and other investments                      28,845      30,159
  Acquisitions, net of cash acquired                     (3,488)     (3,305)
  Capital expenditures                                     (580)       (650)
                                                     ----------  ----------

        Net cash used for investing activities           (7,539)     (5,956)
                                                     ----------  ----------

Cash Flows From Financing Activities:
  Payments for repurchases of common stock               (9,813)    (11,021)
  Proceeds from issuances of common stock                 2,135       1,527
  Payments of dividends to stockholders                  (2,178)     (1,433)
  Proceeds from borrowings, net of issuance costs         5,566       4,974
  Repayments of borrowings                                    -      (2,950)
  Excess tax benefits on the exercise of stock
   options and vesting of restricted stock-based
   awards                                                   250         241
  Distributions to noncontrolling interests                 (28)        (31)
  Other, net                                                  -         193
                                                     ----------  ----------

        Net cash used for financing activities           (4,068)     (8,500)
                                                     ----------  ----------

Effect of exchange rate changes on cash and cash
 equivalents                                               (158)       (110)
                                                     ----------  ----------

Net increase (decrease) in cash and cash equivalents      3,156        (342)
                                                     ----------  ----------

Cash and cash equivalents at beginning of period         14,613      14,955
                                                     ----------  ----------

Cash and cash equivalents at end of period           $   17,769  $   14,613
                                                     ==========  ==========



                             ORACLE CORPORATION
                        FISCAL 2014 FINANCIAL RESULTS
                  FREE CASH FLOW - TRAILING 4-QUARTERS (1)
                               ($in millions)

                                                  Fiscal 2013
                                    --------------------------------------
                                       Q1        Q2        Q3        Q4
                                    --------  --------  --------  --------

GAAP Operating Cash Flow            $ 13,993  $ 13,533  $ 13,717  $ 14,224

Capital Expenditures (2)                (627)     (710)     (684)     (650)
                                    --------  --------  --------  --------

Free Cash Flow                      $ 13,366  $ 12,823  $ 13,033  $ 13,574
                                    ========  ========  ========  ========

% Growth over prior year                   8%        2%        1%        4%
                                    --------  --------  --------  --------


GAAP Net Income                     $ 10,175  $ 10,564  $ 10,571  $ 10,925

Free Cash Flow as a % of Net Income      131%      121%      123%      124%



                                                  Fiscal 2014
                                    ---------------------------------------
                                       Q1        Q2        Q3         Q4
                                    --------  --------  --------  ---------

GAAP Operating Cash Flow            $ 14,845  $ 15,196  $ 15,029  $ 14,921

Capital Expenditures (2)                (664)     (578)     (609)     (580)
                                    --------  --------  --------  --------

Free Cash Flow                      $ 14,181  $ 14,618  $ 14,420  $ 14,341
                                    ========  ========  ========  ========

% Growth over prior year                   6%       14%       11%        6%
                                    --------  --------  --------  --------


GAAP Net Income                     $ 11,082  $ 11,054  $ 11,115  $ 10,955

Free Cash Flow as a % of Net Income      128%      132%      130%      131%

(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) Derived from capital expenditures as reported in cash flows from
    investing activities as per our consolidated statements of cash flows
    presented in accordance with GAAP.



                             ORACLE CORPORATION
                        FISCAL 2014 FINANCIAL RESULTS
          SUPPLEMENTAL ANALYSIS OF GAAP REVENUES AND HEADCOUNT (1)
                               ($in millions)

                                          Fiscal 2013
                     ----------------------------------------------------
                        Q1         Q2         Q3         Q4        TOTAL
                     --------   --------   --------   --------   --------
REVENUES
  New software
   licenses          $  1,371   $  2,171   $  2,101   $  3,769   $  9,411
  Cloud software-as-
   a-service and
   platform-as-a-
   service                203        218        231        257        910
  Cloud
   infrastructure-as-
   a-service              119        114        110        113        457
  Software license
   updates and
   product support      4,140      4,260      4,340      4,402     17,142
                     --------   --------   --------   --------   --------
    Software and
     Cloud Revenues     5,833      6,763      6,782      8,541     27,920

  Hardware systems
   products               779        734        671        849      3,033
  Hardware systems
   support                574        587        570        582      2,313
                     --------   --------   --------   --------   --------
    Hardware Systems
     Revenues           1,353      1,321      1,241      1,431      5,346

    Services Revenues     995      1,010        935        975      3,914

                     --------   --------   --------   --------   --------
      Total Revenues $  8,181   $  9,094   $  8,958   $ 10,947   $ 37,180
                     ========   ========   ========   ========   ========

AS REPORTED REVENUE
 GROWTH RATES
  New software
   licenses                (3%)       11%        (7%)       (1%)        0%
  Cloud software-as-
   a-service and
   platform-as-a-
   service                138%       145%       111%        50%       100%
  Cloud
   infrastructure-as-
   a-service               13%         5%        (1%)       (4%)        3%
  Software license
   updates and
   product support          3%         7%         7%         6%         6%
    Software and
     Cloud Revenues         4%        10%         4%         3%         5%

  Hardware systems
   products               (24%)      (23%)      (23%)      (13%)      (21%)
  Hardware systems
   support                (11%)       (6%)       (6%)       (3%)       (7%)
    Hardware Systems
     Revenues             (19%)      (16%)      (16%)       (9%)      (15%)

    Services Revenues      (7%)       (6%)       (9%)      (10%)       (8%)

      Total Revenues       (2%)        3%        (1%)        0%         0%

CONSTANT CURRENCY
 GROWTH RATES (2)
  New software
   licenses                 2%        12%        (6%)        0%         1%
  Cloud software-as-
   a-service and
   platform-as-a-
   service                139%       145%       111%        51%       100%
  Cloud
   infrastructure-as-
   a-service               18%         6%         0%        (2%)        5%
  Software license
   updates and
   product support          8%         8%         8%         8%         8%
    Software and
     Cloud Revenues         9%        11%         5%         5%         7%

  Hardware systems
   products               (21%)      (23%)      (22%)      (12%)      (19%)
  Hardware systems
   support                 (6%)       (5%)       (5%)       (1%)       (4%)
    Hardware Systems
     Revenues             (15%)      (16%)      (15%)       (8%)      (13%)

    Services Revenues      (2%)       (4%)       (8%)       (9%)       (6%)

      Total Revenues        3%         5%         0%         2%         2%


GEOGRAPHIC REVENUES

REVENUES
  Americas           $  4,324   $  4,787   $  4,698   $  5,911   $ 19,719
  Europe, Middle East
   & Africa             2,383      2,701      2,745      3,328     11,158
  Asia Pacific          1,474      1,606      1,515      1,708      6,303
                     --------   --------   --------   --------   --------
    Total Revenues   $  8,181   $  9,094   $  8,958   $ 10,947   $ 37,180
                     ========   ========   ========   ========   ========


HEADCOUNT

GEOGRAPHIC AREA
  Americas             49,145     49,584     50,402     51,519
  Europe, Middle East
   & Africa            22,584     22,594     22,592     22,860
  Asia Pacific         44,170     45,051     45,663     45,855
                     --------   --------   --------   --------   --------
    Total Company     115,899    117,229    118,657    120,234
                     ========   ========   ========   ========   ========



                                          Fiscal 2014
                     ----------------------------------------------------
                        Q1         Q2         Q3         Q4        TOTAL
                     --------   --------   --------   --------   --------
REVENUES
  New software
   licenses          $  1,399   $  2,121   $  2,128   $  3,769   $  9,416
  Cloud software-as-
   a-service and
   platform-as-a-
   service                254        259        287        322      1,121
  Cloud
   infrastructure-as-
   a-service              109         97        121        128        456
  Software license
   updates and
   product support      4,431      4,516      4,564      4,695     18,206
                     --------   --------   --------   --------   --------
    Software and
     Cloud Revenues     6,193      6,993      7,100      8,914     29,199

  Hardware systems
   products               669        714        725        870      2,976
  Hardware systems
   support                592        609        598        596      2,396
                     --------   --------   --------   --------   --------
    Hardware Systems
     Revenues           1,261      1,323      1,323      1,466      5,372

    Services Revenues     918        959        884        940      3,704

                     --------   --------   --------   --------   --------
      Total Revenues $  8,372   $  9,275   $  9,307   $ 11,320   $ 38,275
                     ========   ========   ========   ========   ========

AS REPORTED REVENUE
 GROWTH RATES
  New software
   licenses                 2%        (2%)        1%         0%         0%
  Cloud software-as-
   a-service and
   platform-as-a-
   service                 25%        19%        24%        25%        23%
  Cloud
   infrastructure-as-
   a-service               (9%)      (15%)       10%        13%         0%
  Software license
   updates and
   product support          7%         6%         5%         7%         6%
    Software and
     Cloud Revenues         6%         3%         5%         4%         5%

  Hardware systems
   products               (14%)       (3%)        8%         2%        (2%)
  Hardware systems
   support                  3%         4%         5%         2%         4%
    Hardware Systems
     Revenues              (7%)        0%         7%         2%         0%

    Services Revenues      (8%)       (5%)       (5%)       (4%)       (5%)

      Total Revenues        2%         2%         4%         3%         3%

CONSTANT CURRENCY
 GROWTH RATES (2)
  New software
   licenses                 5%         0%         3%        (1%)        1%
  Cloud software-as-
   a-service and
   platform-as-a-
   service                 26%        20%        25%        25%        24%
  Cloud
   infrastructure-as-
   a-service               (7%)      (14%)       11%        13%         1%
  Software license
   updates and
   product support          8%         7%         7%         6%         7%
    Software and
     Cloud Revenues         8%         5%         6%         4%         5%

  Hardware systems
   products               (13%)       (2%)       10%         3%        (1%)
  Hardware systems
   support                  5%         5%         7%         2%         5%
    Hardware Systems
     Revenues              (6%)        1%         9%         3%         2%

    Services Revenues      (6%)       (3%)       (3%)       (3%)       (4%)

      Total Revenues        4%         3%         6%         3%         4%


GEOGRAPHIC REVENUES

REVENUES
  Americas           $  4,517   $  4,995   $  4,953   $  5,857   $ 20,323
  Europe, Middle East
   & Africa             2,439      2,817      2,923      3,768     11,946
  Asia Pacific          1,416      1,463      1,431      1,695      6,006
                     --------   --------   --------   --------   --------
    Total Revenues   $  8,372   $  9,275   $  9,307   $ 11,320   $ 38,275
                     ========   ========   ========   ========   ========


HEADCOUNT

GEOGRAPHIC AREA
  Americas             53,465     53,073     53,799     53,827
  Europe, Middle East
   & Africa            23,349     23,178     23,350     23,339
  Asia Pacific         45,513     45,617     45,561     45,108
                     --------   --------   --------   --------   --------
    Total Company     122,327    121,868    122,710    122,274
                     ========   ========   ========   ========   ========

(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, 2013 and 2012 for the fiscal 2014 and fiscal
    2013 constant currency growth rate calculations presented, respectively,
    rather than the actual exchange rates in effect during the respective
    periods.





                             ORACLE CORPORATION
                        FISCAL 2014 FINANCIAL RESULTS
                SUPPLEMENTAL GEOGRAPHIC REVENUES ANALYSIS (1)
                               ($ in millions)

                                          Fiscal 2013
                     ----------------------------------------------------
                        Q1         Q2         Q3         Q4        TOTAL
                     --------   --------   --------   --------   --------

AMERICAS
  Software and cloud
   revenues          $  3,164   $  3,641   $  3,651   $  4,686   $ 15,142
                     ========   ========   ========   ========   ========
  Hardware systems
   revenues          $    652   $    648   $    577   $    728   $  2,604
                     ========   ========   ========   ========   ========

AS REPORTED GROWTH
 RATES
  Software and cloud
   revenues                 8%        13%         4%         5%         7%
  Hardware systems
   revenues               (16%)      (17%)      (17%)       (7%)      (14%)

CONSTANT CURRENCY
 GROWTH RATES (2)
  Software and cloud
   revenues                10%        13%         5%         6%         8%
  Hardware systems
   revenues               (15%)      (17%)      (17%)       (7%)      (14%)


EUROPE / MIDDLE EAST
 / AFRICA
  Software and cloud
   revenues          $  1,699   $  1,993   $  2,073   $  2,627   $  8,393
                     ========   ========   ========   ========   ========
  Hardware systems
   revenues          $    402   $    391   $    390   $    411   $  1,594
                     ========   ========   ========   ========   ========

AS REPORTED GROWTH
 RATES
  Software and cloud
   revenues                (4%)        5%         5%         5%         3%
  Hardware systems
   revenues               (31%)      (22%)      (18%)      (10%)      (21%)

CONSTANT CURRENCY
 GROWTH RATES (2)
  Software and cloud
   revenues                 7%         8%         5%         6%         6%
  Hardware systems
   revenues               (22%)      (19%)      (18%)       (9%)      (17%)


ASIA PACIFIC
  Software and cloud
   revenues          $    970   $  1,129   $  1,058   $  1,228   $  4,385
                     ========   ========   ========   ========   ========
  Hardware systems
   revenues          $    299   $    282   $    274   $    292   $  1,148
                     ========   ========   ========   ========   ========

AS REPORTED GROWTH
 RATES
  Software and cloud
   revenues                 6%        10%         1%        (5%)        2%
  Hardware systems
   revenues                (7%)       (5%)      (10%)      (12%)       (9%)

CONSTANT CURRENCY
 GROWTH RATES (2)
  Software and cloud
   revenues                10%        10%         5%         0%         6%
  Hardware systems
   revenues                (4%)       (6%)       (7%)       (9%)       (7%)


TOTAL COMPANY
  Software and cloud
   revenues          $  5,833   $  6,763   $  6,782   $  8,541   $ 27,920
                     ========   ========   ========   ========   ========
  Hardware systems
   revenues          $  1,353   $  1,321   $  1,241   $  1,431   $  5,346
                     ========   ========   ========   ========   ========

AS REPORTED GROWTH
 RATES
  Software and cloud
   revenues                 4%        10%         4%         3%         5%
  Hardware systems
   revenues               (19%)      (16%)      (16%)       (9%)      (15%)

CONSTANT CURRENCY
 GROWTH RATES (2)
  Software and cloud
   revenues                 9%        11%         5%         5%         7%
  Hardware systems
   revenues               (15%)      (16%)      (15%)       (8%)      (13%)



                                          Fiscal 2014
                     ----------------------------------------------------
                        Q1         Q2         Q3         Q4        TOTAL
                     --------   --------   --------   --------   --------

AMERICAS
  Software and cloud
   revenues          $  3,434   $  3,808   $  3,847   $  4,649   $ 15,737
                     ========   ========   ========   ========   ========
  Hardware systems
   revenues          $    640   $    694   $    655   $    747   $  2,736
                     ========   ========   ========   ========   ========

AS REPORTED GROWTH
 RATES
  Software and cloud
   revenues                 9%         5%         5%        (1%)        4%
  Hardware systems
   revenues                (2%)        7%        14%         3%         5%

CONSTANT CURRENCY
 GROWTH RATES (2)
  Software and cloud
   revenues                 9%         6%         7%         1%         5%
  Hardware systems
   revenues                (1%)        8%        16%         5%         6%


EUROPE / MIDDLE EAST
 / AFRICA
  Software and cloud
   revenues          $  1,816   $  2,155   $  2,245   $  3,032   $  9,249
                     ========   ========   ========   ========   ========
  Hardware systems
   revenues          $    358   $    372   $    403   $    440   $  1,572
                     ========   ========   ========   ========   ========

AS REPORTED GROWTH
 RATES
  Software and cloud
   revenues                 7%         8%         8%        15%        10%
  Hardware systems
   revenues               (11%)       (5%)        3%         7%        (1%)

CONSTANT CURRENCY
 GROWTH RATES (2)
  Software and cloud
   revenues                 4%         6%         6%        10%         7%
  Hardware systems
   revenues               (13%)       (6%)        2%         3%        (3%)


ASIA PACIFIC
  Software and cloud
   revenues          $    943   $  1,030   $  1,008   $  1,233   $  4,213
                     ========   ========   ========   ========   ========
  Hardware systems
   revenues          $    263   $    257   $    265   $    279   $  1,064
                     ========   ========   ========   ========   ========

AS REPORTED GROWTH
 RATES
  Software and cloud
   revenues                (3%)       (9%)       (5%)        0%        (4%)
  Hardware systems
   revenues               (12%)       (9%)       (3%)       (4%)       (7%)

CONSTANT CURRENCY
 GROWTH RATES (2)
  Software and cloud
   revenues                 8%         0%         3%         3%         3%
  Hardware systems
   revenues                (5%)       (3%)        3%        (3%)       (2%)


TOTAL COMPANY
  Software and cloud
   revenues          $  6,193   $  6,993   $  7,100   $  8,914   $ 29,199
                     ========   ========   ========   ========   ========
  Hardware systems
   revenues          $  1,261   $  1,323   $  1,323   $  1,466   $  5,372
                     ========   ========   ========   ========   ========

AS REPORTED GROWTH
 RATES
  Software and cloud
   revenues                 6%         3%         5%         4%         5%
  Hardware systems
   revenues                (7%)        0%         7%         2%         0%

CONSTANT CURRENCY
 GROWTH RATES (2)
  Software and cloud
   revenues                 8%         5%         6%         4%         5%
  Hardware systems
   revenues                (6%)        1%         9%         3%         2%

(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, 2013 and 2012 for the fiscal 2014 and fiscal
    2013 constant currency growth rate calculations presented, respectively,
    rather than the actual exchange rates in effect during the respective
    periods.



                                                                  APPENDIX A
                             ORACLE CORPORATION
                      Q4 FISCAL 2014 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:

  • Cloud software-as-a-service and platform-as-a-service, 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-as-a-service and platform-as-a-service 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 and support contracts that would have otherwise been recorded by the acquired entity. The non-GAAP adjustment to our cloud software-as-a-service and platform-as-a-service 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-as-a-service and platform-as-a-service and hardware systems support contracts; however, we cannot be certain that our customers will renew our cloud software-as-a-service and platform-as-a-service 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 certain other operating items, 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
Email Contact

Deborah Hellinger
Oracle Corporate Communications
1.212.508.7935
Email Contact

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