Oracle 8-K 2006
For Immediate Release
Oracles Q4 Fiscal 2006 Preliminary Financial Results Exceed Guidance
New License Revenues Grew 32%
REDWOOD SHORES, Calif., June 15, 2006Oracle Corporation (NASDAQ: ORCL), today announced that preliminary Q4 fiscal 2006 financial results exceeded managements previous guidance.
New software license revenues increased 32% to $2.12 billion, exceeding previous guidance of 8% to 18% growth. Database technology license revenues grew 18%, while applications license revenues increased 83%. Organic applications license revenues, which exclude the Siebel and Retek acquisitions, increased 56%.
Fourth quarter total GAAP revenues increased 25% to $4.85 billion, exceeding previous guidance of 13% to 17% growth. Q4 GAAP earnings per share are estimated to be $0.24, as compared to previous guidance of $0.21 to $0.23.
Total non-GAAP revenues increased to $4.94 billion or 22% in the fourth quarter, exceeding previous guidance of 10% to 14% growth. Non-GAAP earnings per share are estimated to be $0.29, as compared to previous guidance of $0.26 to $0.28.
These preliminary financial results are subject to revision. Oracle will release its final results on June 22nd, as previously announced, and will hold a conference call and web broadcast to discuss the results at 2:00 p.m. (PDT) / 5:00 p.m. (EDT). To access the live web broadcast of the event, please visit the Oracle Investor Relations website at http://www.oracle.com/investor.
Oracle Corporation is the worlds largest enterprise software company. For more information about Oracle, please call Investor Relations at (650) 506-4073.
Safe Harbor Statement: Statements in this press release relating to Oracles preliminary 2006 fourth quarter results and future plans and prospects are forward-looking statements and are subject to material risks and uncertainties. Many factors could affect our current expectations and our actual results, and could cause actual results to differ materially. These preliminary 2006 fourth quarter results are subject to revision. 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 could adversely affect our revenue growth and profitability through reductions in IT budgets and expenditures. (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) We cannot assure market acceptance of new products or new versions of existing products. (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) Periodic changes to our pricing model and sales organization could temporarily disrupt operations and cause a decline or delay in sales. (6) Intense competitive forces demand rapid technological advances and frequent new product introductions, and could require us to reduce prices. 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, as amended, and Form 10-Q, particularly under the heading Factors That May Affect Our Future Results or the Market Price of Our Stock. Copies of these filings are available online from the SEC at www.sec.gov or by contacting Oracle Corporations Investor Relations Department at (650) 506-4073 or by clicking on SEC Filings on Oracles Investor Relations website at http://www.oracle.com/investor. All information set forth in this release is current as of June 15, 2006. Oracle undertakes no duty to update any statement in light of new information or future events.
Q4 Fiscal 2006 Preliminary Financial Results
RECONCILIATION OF ESTIMATED GAAP MEASURES TO NON-GAAP MEASURES (1)
(in millions, except per share data)
Q4 FISCAL 2006 PRELIMINARY FINANCIAL RESULTS
EXPLANATION OF NON-GAAP MEASURES
Due to a series of acquisitions, our results of operations have undergone significant change. To supplement our preliminary financial results presented on a GAAP basis, we use the non-GAAP measures indicated in the table, which exclude certain business combination accounting entries, and expenses related to acquisitions and other significant expenses, 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 effect: