Oracle Reports Q2 GAAP EPS Up 17% to 43 Cents; Q2 Non-GAAP EPS Up 6% to 54 Cents

Trailing Twelve Month Operating Cash Flow Up 45% to $13.1 Billion

Marketwired

REDWOOD SHORES, CA--(Marketwire -12/20/11)- Oracle Corporation (NASDAQ: ORCL - News) today announced fiscal 2012 Q2 GAAP and non-GAAP total revenues were up 2% to $8.8 billion. Both GAAP and non-GAAP new software license revenues were up 2% to $2.0 billion. Both GAAP and non-GAAP software license updates and product support revenues were up 9% to $4.0 billion. Both GAAP and non-GAAP hardware systems products revenues were down 14% to $953 million. GAAP operating income was up 12% to $3.1 billion, and GAAP operating margin was 35%. Non-GAAP operating income was up 3% to $3.9 billion, and non-GAAP operating margin was 45%. GAAP net income was up 17% to $2.2 billion, while non-GAAP net income was up 6% to $2.8 billion. GAAP earnings per share were $0.43, up 17% compared to last year while non-GAAP earnings per share were up 6% to $0.54. GAAP operating cash flow on a trailing twelve-month basis was $13.1 billion.

"Non-GAAP operating margins increased to 45% in Q2," said Oracle President and CFO, Safra Catz, "and we expect those margins to keep growing. Operating cash flow over the last twelve months grew to $13.1 billion; that's up a remarkable 45% compared to the preceding twelve month period."

"We have expanded our worldwide sales capacity by adding over 1,700 sales professionals in the first half of this fiscal year," said Oracle President, Mark Hurd. "We believe that this increase in our field organization combined with innovative new products like Fusion Cloud ERP and Cloud CRM will enable solid organic growth in the second half of this year."

"Sales of our engineered systems accelerated in Q2," said Oracle CEO, Larry Ellison. "Exadata growth was well over 100% compared to last year, and Exalogic grew more than 100% on a sequential basis. We shipped our first SPARC SuperCluster in Q2 and expect to begin deliveries of our Exalytics system and the Oracle Big Data Appliance in Q3."

Oracle announced that its Board of Directors authorized the repurchase of up to an additional $5.0 billion of common stock under its existing share repurchase program in future quarters.

The Board of Directors also declared a quarterly cash dividend of $0.06 per share of outstanding common stock. This dividend will be paid to stockholders of record as of the close of business on January 11, 2012, with a payment date of February 1, 2012.

Q2 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) 312-0945 or (877) 612-6725, Passcode: 289185. To access the live webcast of this event, please visit the Oracle Investor Relations website at http://www.oracle.com/investor. A replay of the conference call will also be available by dialing (719) 457-0820 or (888) 203-1112, Passcode: 5771640.

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 - News), 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 operating margin growth, organic growth in the second half of fiscal 2012, Exalytics systems and Oracle Big Data Appliance deliveries and our share repurchase program, are "forward-looking statements" and are subject to material risks and uncertainties. Many factors could affect our current expectations and our actual results, and could cause actual results to differ materially. We presently consider the following to be among the important factors that could cause actual results to differ materially from expectations: (1) Economic, political and market conditions, including the recent recession and 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 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 20, 2011. Oracle undertakes no duty to update any statement in light of new information or future events.

 
                             ORACLE CORPORATION
                      Q2 FISCAL 2012 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
                      2011   Revenues  2010   Revenues   in US $      (1)
                     ------  -------- ------  -------- ---------- ----------

REVENUES
  New software
   licenses          $2,048     23%   $1,999     23%       2%         3%
  Software license
   updates and
   product support    3,986     46%    3,645     43%       9%         9%
                     ------  -------- ------  --------
    Software
     Revenues         6,034     69%    5,644     66%       7%         7%
                     ------  -------- ------  --------
  Hardware systems
   products             953     11%    1,112     13%      (14%)      (14%)
  Hardware systems
   support              625     7%       641     7%       (2%)       (3%)
                     ------  -------- ------  --------
    Hardware Systems
     Revenues         1,578     18%    1,753     20%      (10%)      (10%)
                     ------  -------- ------  --------

  Services            1,180     13%    1,185     14%       0%         0%
                     ------  -------- ------  --------

      Total Revenues  8,792    100%    8,582    100%       2%         2%
                     ------  -------- ------  --------

OPERATING EXPENSES
  Sales and
   marketing          1,697     19%    1,530     18%       11%        11%
  Software license
   updates and
   product support      298     3%       307     4%       (3%)       (3%)
  Hardware systems
   products             471     5%       525     6%       (10%)      (10%)
  Hardware systems
   support              258     3%       356     4%       (27%)      (28%)
  Services              929     11%      969     11%      (4%)       (3%)
  Research and
   development        1,102     13%    1,119     13%      (2%)       (1%)
  General and
   administrative
   (2)                  277     3%       156     2%        77%        77%
  Amortization of
   intangible assets    592     7%       614     7%       (4%)       (4%)
  Acquisition
   related and other      5     0%        47     1%       (89%)      (92%)
  Restructuring          52     1%       189     2%       (72%)      (72%)
                     ------  -------- ------  --------

      Total
       Operating
       Expenses       5,681     65%    5,812     68%      (2%)       (2%)
                     ------  -------- ------  --------

OPERATING INCOME      3,111     35%    2,770     32%       12%        12%
  Interest expense     (192)   (2%)     (214)   (2%)      (11%)      (11%)
  Non-operating
   income, net           41     1%        90     1%       (55%)      (49%)
                     ------  -------- ------  --------

INCOME BEFORE
 PROVISION FOR
 INCOME TAXES         2,960     34%    2,646     31%       12%        11%
                     ------  -------- ------  --------
  Provision for
   income taxes         768     9%       776     9%       (1%)       (2%)
                     ------  -------- ------  --------

NET INCOME           $2,192     25%   $1,870     22%       17%        17%
                     ======  ======== ======  ========

EARNINGS PER SHARE:
  Basic              $ 0.43           $ 0.37
  Diluted            $ 0.43           $ 0.37
WEIGHTED AVERAGE
 COMMON SHARES
 OUTSTANDING:
  Basic               5,041            5,044
  Diluted             5,123            5,117


(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, 2011, 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, 2011 compared with the corresponding prior year period had
    no impact on our revenues, operating expenses and operating income.

(2) General and administrative expenses for the three months ended November
    30, 2010 included a benefit of $120 million related to the recovery of
    legal costs.



                        ORACLE CORPORATION
                 Q2 FISCAL 2012 FINANCIAL RESULTS
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1)
              ($ in millions, except per share data)

                                      Three Months Ended November 30,
                              ----------------------------------------------
                                               2011                    2010
                                2011           Non-    2010            Non-
                                GAAP   Adj.    GAAP    GAAP   Adj.     GAAP
                              ------- -----  ------- ------- ------  -------

TOTAL REVENUES (3) (4)        $ 8,792 $  19  $ 8,811 $ 8,582 $   67  $ 8,649

TOTAL SOFTWARE REVENUES (3)   $ 6,034 $  10  $ 6,044 $ 5,644 $   22  $ 5,666
  New software licenses         2,048     -    2,048   1,999      -    1,999
  Software license updates
   and product support (3)      3,986    10    3,996   3,645     22    3,667

TOTAL HARDWARE SYSTEMS
 REVENUES (4)                 $ 1,578 $   9  $ 1,587 $ 1,753 $   45  $ 1,798
  Hardware systems products       953     -      953   1,112      -    1,112
  Hardware systems support
   (4)                            625     9      634     641     45      686

TOTAL OPERATING EXPENSES      $ 5,681 $(799) $ 4,882 $ 5,812 $ (969) $ 4,843
  Stock-based compensation
   (5)                            150  (150)       -     119   (119)       -
  Amortization of intangible
   assets (6)                     592  (592)       -     614   (614)       -
  Acquisition related and
   other                            5    (5)       -      47    (47)       -
  Restructuring                    52   (52)       -     189   (189)       -

OPERATING INCOME              $ 3,111 $ 818  $ 3,929 $ 2,770 $1,036  $ 3,806

OPERATING MARGIN %                35%            45%     32%             44%

INCOME TAX EFFECTS (7)        $   768 $ 226  $   994 $   776 $  274  $ 1,050

NET INCOME                    $ 2,192 $ 592  $ 2,784 $ 1,870 $  762  $ 2,632

DILUTED EARNINGS PER SHARE    $  0.43        $  0.54 $  0.37         $  0.51

DILUTED WEIGHTED AVERAGE
 COMMON SHARES OUTSTANDING      5,123     -    5,123   5,117      -    5,117




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

TOTAL REVENUES (3) (4)             2%       2%      2%       2%

TOTAL SOFTWARE REVENUES (3)        7%       7%      7%       7%
  New software licenses            2%       2%      3%       3%
  Software license updates
   and product support (3)         9%       9%      9%       9%

TOTAL HARDWARE SYSTEMS
 REVENUES (4)                     (10%)   (12%)    (10%)   (12%)
  Hardware systems products       (14%)   (14%)    (14%)   (14%)
  Hardware systems support
   (4)                            (2%)     (8%)    (3%)     (8%)

TOTAL OPERATING EXPENSES          (2%)      1%     (2%)      1%
  Stock-based compensation
   (5)                             26%      *       26%      *
  Amortization of intangible
   assets (6)                     (4%)      *      (4%)      *
  Acquisition related and
   other                          (89%)     *      (92%)     *
  Restructuring                   (72%)     *      (72%)     *

OPERATING INCOME                   12%      3%      12%      3%

OPERATING MARGIN %               310 bp.  59 bp.  291 bp.  42 bp.

INCOME TAX EFFECTS (7)            (1%)     (5%)    (2%)     (6%)

NET INCOME                         17%      6%      17%      5%

DILUTED EARNINGS PER SHARE         17%      6%      16%      5%

DILUTED WEIGHTED AVERAGE
 COMMON SHARES OUTSTANDING         0%       0%      0%       0%


(1) This presentation includes non-GAAP measures. Our non-GAAP measures are
    not meant to be considered in isolation or as a substitute for
    comparable GAAP measures, and should be read only in conjunction with
    our consolidated financial statements prepared in accordance with GAAP.
    For a detailed explanation of the adjustments made to comparable GAAP
    measures, the reasons why management uses these measures, the usefulness
    of these measures and the material limitations on the usefulness of
    these measures, please see Appendix A.

(2) We compare the percent change in the results from one period to another
    period using constant currency disclosure. We present constant currency
    information to provide a framework for assessing how our underlying
    businesses performed excluding the effect of foreign currency rate
    fluctuations. To present this information, current and comparative prior
    period results for entities reporting in currencies other than United
    States dollars are converted into United States dollars at the exchange
    rates in effect on May 31, 2011, 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, 2011, approximately $11 million, $9 million and $2
    million in estimated revenues related to assumed software support
    contracts will not be recognized for the remainder of fiscal 2012,
    fiscal 2013 and fiscal 2014, respectively, due to business combination
    accounting rules.

(4) As of November 30, 2011, approximately $10 million and $11 million in
    estimated revenues related to hardware systems support contracts will
    not be recognized for the remainder of fiscal 2012 and fiscal 2013,
    respectively, 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
                                  November 30, 2011      November 30, 2010
                               ---------------------- ----------------------
                                                 Non-                   Non-
                                 GAAP    Adj.    GAAP   GAAP    Adj.    GAAP
                               ------- -------  ----- ------- -------  -----
      Sales and marketing      $    29 $   (29) $   - $    19 $   (19) $   -
      Software license updates
       and product support           5      (5)     -       3      (3)     -
      Hardware systems
       products                      -       -      -       1      (1)     -
      Hardware systems support       2      (2)     -       1      (1)     -
      Services                       6      (6)     -       4      (4)     -
      Research and development      68     (68)     -      55     (55)     -
      General and
       administrative               40     (40)     -      36     (36)     -
                               ------- -------  ----- ------- -------  -----
        Subtotal                   150    (150)     -     119    (119)     -
                               ------- -------  ----- ------- -------  -----
      Acquisition related and
       other                         2      (2)     -       5      (5)     -
                               ------- -------  ----- ------- -------  -----
        Total stock-based
         compensation          $   152 $  (152) $   - $   124 $  (124) $   -
                               ======= =======  ===== ======= =======  =====

(6) Estimated future annual amortization expense related to intangible
    assets as of November 30, 2011 was as follows:

          Remainder of Fiscal
           2012                $ 1,162
          Fiscal 2013            1,991
          Fiscal 2014            1,644
          Fiscal 2015            1,244
          Fiscal 2016              737
          Fiscal 2017              183
          Thereafter               180
                               -------
      Total intangible assets
       subject to amortization   7,141
          In-process research
           and development          11
                               -------
            Total intangible
             assets, net       $ 7,152
                               =======

(7) Income tax effects were calculated reflecting an effective GAAP tax rate
    of 25.9% and 29.3% in the second quarter of fiscal 2012 and 2011,
    respectively, and an effective non-GAAP tax rate of 26.3% and 28.5% in
    the second quarter of fiscal 2012 and 2011, respectively. The
    differences between our GAAP and non-GAAP tax rates in the second
    quarter of fiscal 2012 and fiscal 2011 were primarily due to differences
    in jurisdictional tax rates and the related tax benefits attributable to
    our restructuring expenses in these periods.

 *  Not meaningful



                             ORACLE CORPORATION
                Q2 FISCAL 2012 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
                     2011   Revenues   2010   Revenues   in US $      (1)
                   -------  -------- -------  -------- ---------- ----------

REVENUES
  New software
   licenses        $ 3,546     21%   $ 3,284     21%       8%         6%
  Software license
   updates and
   product support   8,008     46%     7,096     44%       13%        10%
                   -------  -------- -------  --------
    Software
     Revenues       11,554     67%    10,380     65%       11%        8%
                   -------  -------- -------  --------
  Hardware systems
   products          1,981     12%     2,190     13%      (10%)      (13%)
  Hardware systems
   support           1,271     7%      1,261     8%        1%        (3%)
                   -------  -------- -------  --------
    Hardware
     Systems
     Revenues        3,252     19%     3,451     21%      (6%)       (9%)
                   -------  -------- -------  --------

  Services           2,360     14%     2,253     14%       5%         2%
                   -------  -------- -------  --------

      Total
       Revenues     17,166    100%    16,084    100%       7%         4%
                   -------  -------- -------  --------

OPERATING EXPENSES
  Sales and
   marketing         3,327     19%     2,864     18%       16%        13%
  Software license
   updates and
   product support     594     3%        615     4%       (3%)       (5%)
  Hardware systems
   products            943     6%      1,082     7%       (13%)      (14%)
  Hardware systems
   support             541     3%        656     4%       (17%)      (20%)
  Services           1,865     11%     1,865     11%       0%        (2%)
  Research and
   development       2,152     13%     2,222     14%      (3%)       (4%)
  General and
   administrative
   (2)                 587     3%        428     3%        37%        34%
  Amortization of
   intangible
   assets            1,184     7%      1,217     7%       (3%)       (3%)
  Acquisition
   related and
   other                25     0%        130     1%       (81%)      (83%)
  Restructuring        154     1%        318     2%       (52%)      (53%)
                   -------  -------- -------  --------

      Total
       Operating
       Expenses     11,372     66%    11,397     71%       0%        (2%)
                   -------  -------- -------  --------

OPERATING INCOME     5,794     34%     4,687     29%       24%        17%
  Interest expense    (384)   (2%)      (410)   (2%)      (6%)       (6%)
  Non-operating
   income, net          21     0%        165     1%       (87%)      (84%)
                   -------  -------- -------  --------

INCOME BEFORE
 PROVISION FOR
 INCOME TAXES        5,431     32%     4,442     28%       22%        16%
                   -------  -------- -------  --------
  Provision for
   income taxes      1,399     9%      1,219     8%        15%        9%
                   -------  -------- -------  --------

NET INCOME         $ 4,032     23%   $ 3,223     20%       25%        19%
                   =======  ======== =======  ========

EARNINGS PER
 SHARE:
  Basic            $  0.80           $  0.64
  Diluted          $  0.78           $  0.63
WEIGHTED AVERAGE
 COMMON SHARES
 OUTSTANDING:
  Basic              5,052             5,035
  Diluted            5,137             5,100


(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, 2011, 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, 2011
    compared with the corresponding prior year period increased our revenues
    by 3 percentage points, operating expenses by 2 percentage points and
    operating income by 7 percentage points.

(2) General and administrative expenses for the six months ended November
    30, 2010 included a benefit of $120 million related to the recovery of
    legal costs.



                        ORACLE CORPORATION
          Q2 FISCAL 2012 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                     2010
                             2011             Non-    2010             Non-
                             GAAP    Adj.     GAAP    GAAP    Adj.     GAAP
                           ------- -------  ------- ------- -------  -------

TOTAL REVENUES (3) (4)     $17,166 $    43  $17,209 $16,084 $   153  $16,237

TOTAL SOFTWARE REVENUES
 (3)                       $11,554 $    24  $11,578 $10,380 $    47  $10,427
  New software licenses      3,546       -    3,546   3,284       -    3,284
  Software license updates
   and product support (3)   8,008      24    8,032   7,096      47    7,143

TOTAL HARDWARE SYSTEMS
 REVENUES (4)              $ 3,252 $    19  $ 3,271 $ 3,451 $   106  $ 3,557
  Hardware systems
   products                  1,981       -    1,981   2,190       -    2,190
  Hardware systems support
   (4)                       1,271      19    1,290   1,261     106    1,367

TOTAL OPERATING EXPENSES   $11,372 $(1,658) $ 9,714 $11,397 $(1,913) $ 9,484
  Stock-based compensation
   (5)                         295    (295)       -     248    (248)       -
  Amortization of
   intangible assets (6)     1,184  (1,184)       -   1,217  (1,217)       -
  Acquisition related and
   other                        25     (25)       -     130    (130)       -
  Restructuring                154    (154)       -     318    (318)       -

OPERATING INCOME           $ 5,794 $ 1,701  $ 7,495 $ 4,687 $ 2,066  $ 6,753

OPERATING MARGIN %             34%              44%     29%              42%
INCOME TAX EFFECTS (7)     $ 1,399 $   483  $ 1,882 $ 1,219 $   528  $ 1,747

NET INCOME                 $ 4,032 $ 1,218  $ 5,250 $ 3,223 $ 1,538  $ 4,761

DILUTED EARNINGS PER SHARE $  0.78          $  1.02 $  0.63          $  0.93

DILUTED WEIGHTED AVERAGE
 COMMON SHARES OUTSTANDING   5,137       -    5,137   5,100       -    5,100



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

TOTAL REVENUES (3) (4)          7%        6%       4%        3%

TOTAL SOFTWARE REVENUES
 (3)                            11%      11%       8%        8%
  New software licenses         8%        8%       6%        6%
  Software license updates
   and product support (3)      13%      12%       10%       9%

TOTAL HARDWARE SYSTEMS
 REVENUES (4)                  (6%)      (8%)     (9%)     (11%)
  Hardware systems
   products                    (10%)    (10%)     (13%)    (13%)
  Hardware systems support
   (4)                          1%       (6%)     (3%)      (9%)

TOTAL OPERATING EXPENSES        0%        2%      (2%)       0%
  Stock-based compensation
   (5)                          20%       *        20%       *
  Amortization of
   intangible assets (6)       (3%)       *       (3%)       *
  Acquisition related and
   other                       (81%)      *       (83%)      *
  Restructuring                (52%)      *       (53%)      *

OPERATING INCOME                24%      11%       17%       7%

OPERATING MARGIN %            461 bp.  196 bp.   393 bp.  154 bp.
INCOME TAX EFFECTS (7)          15%       8%       9%        4%

NET INCOME                      25%      10%       19%       6%

DILUTED EARNINGS PER SHARE      24%       9%       18%       5%

DILUTED WEIGHTED AVERAGE
 COMMON SHARES OUTSTANDING      1%        1%       1%        1%

(1) This presentation includes non-GAAP measures. Our non-GAAP measures are
    not meant to be considered in isolation or as a substitute for
    comparable GAAP measures, and should be read only in conjunction with
    our consolidated financial statements prepared in accordance with GAAP.
    For a detailed explanation of the adjustments made to comparable GAAP
    measures, the reasons why management uses these measures, the usefulness
    of these measures and the material limitations on the usefulness of
    these measures, please see Appendix A.

(2) We compare the percent change in the results from one period to another
    period using constant currency disclosure. We present constant currency
    information to provide a framework for assessing how our underlying
    businesses performed excluding the effect of foreign currency rate
    fluctuations. To present this information, current and comparative prior
    period results for entities reporting in currencies other than United
    States dollars are converted into United States dollars at the exchange
    rates in effect on May 31, 2011, 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, 2011, approximately $11 million, $9 million and $2
    million in estimated revenues related to assumed software support
    contracts will not be recognized for the remainder of fiscal 2012,
    fiscal 2013 and fiscal 2014, respectively, due to business combination
    accounting rules.

(4) As of November 30, 2011, approximately $10 million and $11 million in
    estimated revenues related to hardware systems support contracts will
    not be recognized for the remainder of fiscal 2012 and fiscal 2013,
    respectively, due to business combination accounting rules.

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

                                  Six Months Ended       Six Months Ended
                                  November 30, 2011      November 30, 2010
                               ---------------------- ----------------------
                                                 Non-                   Non-
                                 GAAP    Adj.    GAAP   GAAP    Adj.    GAAP
                               ------- -------  ----- ------- -------  -----
      Sales and marketing      $    55 $   (55) $   - $    42 $   (42) $   -
      Software license updates
       and product support           8      (8)     -       8      (8)     -
      Hardware systems
       products                      1      (1)     -       2      (2)     -
      Hardware systems support       3      (3)     -       2      (2)     -
      Services                      10     (10)     -       8      (8)     -
      Research and development     139    (139)     -     114    (114)     -
      General and
       administrative               79     (79)     -      72     (72)     -
                               ------- -------  ----- ------- -------  -----
        Subtotal                   295    (295)     -     248    (248)     -
                               ------- -------  ----- ------- -------  -----
      Acquisition related and
       other                         3      (3)     -       6      (6)     -
                               ------- -------  ----- ------- -------  -----
        Total stock-based
         compensation          $   298 $  (298) $   - $   254 $  (254) $   -
                               ======= =======  ===== ======= =======  =====

(6) Estimated future annual amortization expense related to intangible
    assets as of November 30, 2011 was as follows:

          Remainder of Fiscal
           2012                $ 1,162
          Fiscal 2013            1,991
          Fiscal 2014            1,644
          Fiscal 2015            1,244
          Fiscal 2016              737
          Fiscal 2017              183
          Thereafter               180
                               -------
      Total intangible assets
       subject to amortization   7,141
          In-process research
           and development          11
                               -------
            Total intangible
             assets, net       $ 7,152
                               =======

(7) Income tax effects were calculated reflecting an effective GAAP tax rate
    of 25.8% and 27.4% in the first half of fiscal 2012 and 2011,
    respectively, and an effective non-GAAP tax rate of 26.4% and 26.8% in
    the first half of fiscal 2012 and 2011, respectively. The differences
    between our GAAP and non-GAAP tax rates in the first half of fiscal 2012
    were 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. The
    differences between our GAAP and non-GAAP tax rates in the first half of
    fiscal 2011 were primarily due to differences in jurisdictional tax
    rates and the related tax benefits attributable to our restructuring
    expenses.

 *  Not meaningful




                             ORACLE CORPORATION
                      Q2 FISCAL 2012 FINANCIAL RESULTS
                    CONDENSED CONSOLIDATED BALANCE SHEETS
                               ($ in millions)

                                                  November 30,     May 31,
                                                      2011          2011
                                                  ------------  ------------
ASSETS

  Current Assets:
    Cash and cash equivalents                     $     13,286  $     16,163
    Marketable securities                               17,726        12,685
    Trade receivables, net                               4,434         6,628
    Inventories                                            218           303
    Deferred tax assets                                  1,239         1,189
    Prepaid expenses and other current assets            1,579         2,206
                                                  ------------  ------------
      Total Current Assets                              38,482        39,174

  Non-Current Assets:
    Property, plant and equipment, net                   2,900         2,857
    Intangible assets, net                               7,152         7,860
    Goodwill                                            21,994        21,553
    Deferred tax assets                                  1,122         1,076
    Other assets                                         1,260         1,015
                                                  ------------  ------------
      Total Non-Current Assets                          34,428        34,361
                                                  ------------  ------------

TOTAL ASSETS                                      $     72,910  $     73,535
                                                  ============  ============

LIABILITIES AND EQUITY

  Current Liabilities:
    Notes payable, current and other current
     borrowings                                   $          -  $      1,150
    Accounts payable                                       445           494
    Accrued compensation and related benefits            1,582         2,320
    Deferred revenues                                    6,091         6,802
    Other current liabilities                            2,954         3,426
                                                  ------------  ------------
      Total Current Liabilities                         11,072        14,192

  Non-Current Liabilities:
    Notes payable and other non-current
     borrowings                                         14,778        14,772
    Income taxes payable                                 3,383         3,169
    Other non-current liabilities                        1,410         1,157
                                                  ------------  ------------
      Total Non-Current Liabilities                     19,571        19,098

  Equity                                                42,267        40,245
                                                  ------------  ------------

TOTAL LIABILITIES AND EQUITY                      $     72,910  $     73,535
                                                  ============  ============



                             ORACLE CORPORATION
                       Q2 FISCAL 2012 FINANCIAL RESULTS
              CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                              ($ in millions)

                                                         Six Months Ended
                                                           November 30,
                                                          2011       2010
                                                       ---------  ---------
Cash Flows From Operating Activities:
  Net income                                           $   4,032  $   3,223
  Adjustments to reconcile net income to net cash
   provided by operating activities:
    Depreciation                                             226        194
    Amortization of intangible assets                      1,184      1,217
    Deferred income taxes                                   (137)       (76)
    Stock-based compensation                                 298        254
    Tax benefits on the exercise of stock options and
     vesting of restricted stock-based awards                 94        142
    Excess tax benefits on the exercise of stock
     options and vesting of restricted stock-based
     awards                                                  (53)       (86)
    Other, net                                                53         24
    Changes in operating assets and liabilities, net
     of effects from acquisitions:
      Decrease in trade receivables, net                   2,128      1,343
      Decrease in inventories                                 93         25
      Decrease in prepaid expenses and other assets          424        280
      Decrease in accounts payable and other
       liabilities                                        (1,306)      (620)
      Increase (decrease) in income taxes payable            184       (613)
      Decrease in deferred revenues                         (544)      (546)
                                                       ---------  ---------

        Net cash provided by operating activities          6,676      4,761
                                                       ---------  ---------

Cash Flows From Investing Activities:
  Purchases of marketable securities and other
   investments                                           (21,422)   (16,802)
  Proceeds from maturities and sales of marketable
   securities and other investments                       16,335     11,153
  Acquisitions, net of cash acquired                        (571)      (806)
  Capital expenditures                                      (289)      (239)
                                                       ---------  ---------

        Net cash used for investing activities            (5,947)    (6,694)
                                                       ---------  ---------

Cash Flows From Financing Activities:
  Payments for repurchases of common stock                (1,798)      (504)
  Proceeds from issuances of common stock                    434        734
  Payments of dividends to stockholders                     (607)      (504)
  Proceeds from borrowings, net of issuance costs              -      3,204
  Repayments of borrowings                                (1,150)      (890)
  Excess tax benefits on the exercise of stock options
   and vesting of restricted stock-based awards               53         86
  Distributions to noncontrolling interests                 (163)       (38)
                                                       ---------  ---------

        Net cash (used for) provided by financing
         activities                                       (3,231)     2,088
                                                       ---------  ---------

Effect of exchange rate changes on cash and cash
 equivalents                                                (375)       351
                                                       ---------  ---------

Net (decrease) increase in cash and cash equivalents      (2,877)       506
                                                       ---------  ---------

Cash and cash equivalents at beginning of period          16,163      9,914
                                                       ---------  ---------

Cash and cash equivalents at end of period             $  13,286  $  10,420
                                                       =========  =========



                             ORACLE CORPORATION
                      Q2 FISCAL 2012 FINANCIAL RESULTS
                  FREE CASH FLOW - TRAILING 4-QUARTERS (1)
                               ($ in millions)

                               Fiscal 2011                Fiscal 2012
                      ---------------------------- -------------------------
                        Q1     Q2     Q3      Q4      Q1      Q2    Q3   Q4
                      ------ ------ ------ ------- ------- ------- ---- ----

GAAP Operating Cash
 Flow                 $8,760 $9,053 $9,948 $11,214 $12,818 $13,129

Capital Expenditures
 (2)                    (293)  (369)  (441)   (450)   (492)   (500)
                      ------ ------ ------ ------- ------- ------- ---- ----

Free Cash Flow        $8,467 $8,684 $9,507 $10,764 $12,326 $12,629
                      ====== ====== ====== ======= ======= ======= ==== ====

% Growth over prior
 year                     0%     3%    19%     27%     46%     45%

                      ------------------------------------------------------

GAAP Net Income       $6,363 $6,776 $7,701 $ 8,547 $ 9,035 $ 9,356

Free Cash Flow as a %
 of Net Income          133%   128%   123%    126%    136%    135%

(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 2012 FINANCIAL RESULTS
SUPPLEMENTAL ANALYSIS OF GAAP REVENUES AND HEADCOUNT (1)
                     ($ in millions)

                                                 Fiscal 2011
                                --------------------------------------------
                                   Q1       Q2       Q3       Q4      TOTAL
                                -------- -------- -------- --------  -------
REVENUES
  New software licenses         $  1,286 $  1,999 $  2,214 $  3,736  $ 9,235
  Software license updates and
   product support                 3,450    3,645    3,740    3,961   14,796
                                -------- -------- -------- --------  -------
    Software Revenues              4,736    5,644    5,954    7,697   24,031

  Hardware systems products        1,079    1,112    1,035    1,157    4,382
  Hardware systems support           619      641      629      673    2,562
                                -------- -------- -------- --------  -------
    Hardware Systems Revenues      1,698    1,753    1,664    1,830    6,944

    Services Revenues              1,068    1,185    1,146    1,248    4,647

                                -------- -------- -------- --------  -------
      Total Revenues            $  7,502 $  8,582 $  8,764 $ 10,775  $35,622
                                ======== ======== ======== ========  =======

AS REPORTED REVENUE GROWTH
 RATES
  New software licenses              25%      21%      29%      19%      23%
  Software license updates and
   product support                   11%      12%      13%      15%      13%
    Software Revenues                14%      15%      19%      17%      17%

  Hardware systems products           *        *      279%      (6%)    191%
  Hardware systems support            *        *      239%      12%     227%
    Hardware Systems Revenues         *        *      263%       0%     203%

    Services Revenues                18%      24%      23%      13%      19%

      Total Revenues                 48%      47%      37%      13%      33%

CONSTANT CURRENCY GROWTH RATES
 (2)
  New software licenses              25%      23%      27%      12%      19%
  Software license updates and
   product support                   12%      13%      12%      10%      12%
    Software Revenues                15%      17%      17%      11%      15%

  Hardware systems products           *        *      274%     (11%)    184%
  Hardware systems support            *        *      234%       6%     218%
    Hardware Systems Revenues         *        *      258%      (5%)    195%

    Services Revenues                18%      25%      21%       7%      17%

      Total Revenues                 49%      48%      35%       7%      30%

                                --------------------------------------------

GEOGRAPHIC REVENUES

REVENUES
  Americas                      $  3,904 $  4,452 $  4,509 $  5,487  $18,352
  Europe, Middle East & Africa     2,381    2,738    2,815    3,564   11,497
  Asia Pacific                     1,217    1,392    1,440    1,724    5,773
                                -------- -------- -------- --------  -------
      Total Revenues            $  7,502 $  8,582 $  8,764 $ 10,775  $35,622
                                ======== ======== ======== ========  =======

                                --------------------------------------------

HEADCOUNT

GEOGRAPHIC AREA
  Americas                        44,494   44,815   45,825   45,887
  Europe, Middle East & Africa    22,886   22,690   22,705   22,394
  Asia Pacific                    37,856   38,225   39,340   40,148
                                -------- -------- -------- --------  -------
      Total Company              105,236  105,730  107,870  108,429
                                ======== ======== ======== ========  =======



                                             Fiscal 2012
                                -------------------------------------
                                   Q1        Q2      Q3   Q4   TOTAL
                                --------  --------  ---- ---- -------
REVENUES
  New software licenses         $  1,498  $  2,048            $ 3,546
  Software license updates and
   product support                 4,022     3,986              8,008
                                --------  --------  ---- ---- -------
    Software Revenues              5,520     6,034             11,554

  Hardware systems products        1,029       953              1,981
  Hardware systems support           645       625              1,271
                                --------  --------  ---- ---- -------
    Hardware Systems Revenues      1,674     1,578              3,252

    Services Revenues              1,180     1,180              2,360

                                --------  --------  ---- ---- -------
      Total Revenues            $  8,374  $  8,792            $17,166
                                ========  ========  ==== ==== =======

AS REPORTED REVENUE GROWTH
 RATES
  New software licenses              17%        2%                 8%
  Software license updates and
   product support                   17%        9%                13%
    Software Revenues                17%        7%                11%

  Hardware systems products          (5%)     (14%)              (10%)
  Hardware systems support            4%       (2%)                1%
    Hardware Systems Revenues        (1%)     (10%)               (6%)

    Services Revenues                10%        0%                 5%

      Total Revenues                 12%        2%                 7%

CONSTANT CURRENCY GROWTH RATES
 (2)
  New software licenses              11%        3%                 6%
  Software license updates and
   product support                   10%        9%                10%
    Software Revenues                11%        7%                 8%

  Hardware systems products         (11%)     (14%)              (13%)
  Hardware systems support           (3%)      (3%)               (3%)
    Hardware Systems Revenues        (8%)     (10%)               (9%)

    Services Revenues                 5%        0%                 2%

      Total Revenues                  5%        2%                 4%

                               --------------------------------------

GEOGRAPHIC REVENUES

REVENUES
  Americas                      $  4,226  $  4,532            $ 8,758
  Europe, Middle East & Africa     2,704     2,756              5,460
  Asia Pacific                     1,444     1,504              2,948
                                --------  --------  ---- ---- -------
      Total Revenues            $  8,374  $  8,792            $17,166
                                ========  ========  ==== ==== =======

                               --------------------------------------

HEADCOUNT

GEOGRAPHIC AREA
  Americas                        46,338    46,672
  Europe, Middle East & Africa    22,210    22,725
  Asia Pacific                    40,840    41,901
                                --------  --------  ---- ---- -------
      Total Company              109,388   111,298
                                ========  ========  ==== ==== =======

(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, 2011 and 2010 for the fiscal 2012 and fiscal
    2011 constant currency growth rate calculations presented, respectively,
    rather than the actual exchange rates in effect during the respective
    periods.

 *  Not meaningful



                   ORACLE CORPORATION
            Q2 FISCAL 2012 FINANCIAL RESULTS
SUPPLEMENTAL TOTAL SOFTWARE PRODUCT REVENUE ANALYSIS (1)
                     ($ in millions)

                                                     Fiscal 2011
                                         -----------------------------------
                                           Q1     Q2     Q3     Q4    TOTAL
                                         ------ ------ ------ ------ -------
SOFTWARE REVENUES

  DATABASE & MIDDLEWARE REVENUES
    New software licenses                $  937 $1,420 $1,575 $2,694 $ 6,626
    Software license updates and product
     support                              2,316  2,443  2,523  2,663   9,945
                                         ------ ------ ------ ------ -------
      Database and Middleware Revenues   $3,253 $3,863 $4,098 $5,357 $16,571
                                         ====== ====== ====== ====== =======

  AS REPORTED GROWTH RATES
    New software licenses                   32%    21%    27%    18%     23%
    Software license updates and product
     support                                12%    15%    15%    15%     14%
      Database and Middleware Revenues      17%    17%    19%    17%     18%

  CONSTANT CURRENCY GROWTH RATES (2)
    New software licenses                   32%    23%    26%    10%     19%
    Software license updates and product
     support                                13%    16%    14%    10%     13%
      Database and Middleware Revenues      18%    18%    18%    10%     15%

                                         -----------------------------------
  APPLICATIONS REVENUES
    New software licenses                $  349 $  579 $  639 $1,042 $ 2,609
    Software license updates and product
     support                              1,134  1,202  1,217  1,298   4,851
                                         ------ ------ ------ ------ -------
      Applications Revenues              $1,483 $1,781 $1,856 $2,340 $ 7,460
                                         ====== ====== ====== ====== =======

  AS REPORTED GROWTH RATES
    New software licenses                   10%    21%    34%    22%     23%
    Software license updates and product
     support                                 8%     8%    10%    16%     10%
      Applications Revenues                  8%    12%    17%    18%     14%

  CONSTANT CURRENCY GROWTH RATES (2)
    New software licenses                   10%    22%    31%    16%     20%
    Software license updates and product
     support                                 9%     9%     9%    10%      9%
      Applications Revenues                  9%    13%    16%    12%     13%



                                                   Fiscal 2012
                                         -------------------------------
                                           Q1     Q2     Q3   Q4   TOTAL
                                         ------ ------  ---- ---- ------
SOFTWARE REVENUES

  DATABASE & MIDDLEWARE REVENUES
    New software licenses                $1,070 $1,479            $2,548
    Software license updates and product
     support                              2,710  2,707             5,416
                                         ------ ------  ---- ---- ------
      Database and Middleware Revenues   $3,780 $4,186            $7,964
                                         ====== ======  ==== ==== ======

  AS REPORTED GROWTH RATES
    New software licenses                   14%     4%                8%
    Software license updates and product
     support                                17%    11%               14%
      Database and Middleware Revenues      16%     8%               12%

  CONSTANT CURRENCY GROWTH RATES (2)
    New software licenses                    8%     4%                6%
    Software license updates and product
     support                                12%    13%               13%
      Database and Middleware Revenues      11%    10%               10%

                                        --------------------------------
  APPLICATIONS REVENUES
    New software licenses                $  428 $  569            $  998
    Software license updates and product
     support                              1,312  1,279             2,592
                                         ------ ------  ---- ---- ------
      Applications Revenues              $1,740 $1,848            $3,590
                                         ====== ======  ==== ==== ======

  AS REPORTED GROWTH RATES
    New software licenses                   23%    (2%)               8%
    Software license updates and product
     support                                16%     6%               11%
      Applications Revenues                 17%     4%               10%

  CONSTANT CURRENCY GROWTH RATES (2)
    New software licenses                   19%    (1%)               7%
    Software license updates and product
     support                                 7%     2%                4%
      Applications Revenues                 10%     1%                5%

(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, 2011 and 2010 for the fiscal 2012 and fiscal
    2011 constant currency growth rate calculations presented, respectively,
    rather than the actual exchange rates in effect during the respective
    periods.



                             ORACLE CORPORATION
                      Q2 FISCAL 2012 FINANCIAL RESULTS
 SUPPLEMENTAL GEOGRAPHIC NEW SOFTWARE LICENSE AND HARDWARE SYSTEMS PRODUCTS
                            REVENUES ANALYSIS (1)
                               ($in millions)

                                                    Fiscal 2011
                                       -------------------------------------
                                         Q1      Q2      Q3     Q4     TOTAL
                                       ------  ------  ------ ------  ------

AMERICAS

  Database & Middleware                $  446  $  671  $  755 $1,284  $3,155
  Applications                            212     359     355    580   1,507
                                       ------  ------  ------ ------  ------
    New Software License Revenues      $  658  $1,030  $1,110 $1,864  $4,662
                                       ======  ======  ====== ======  ======
  Hardware Systems Products Revenues   $  543  $  602  $  506 $  599  $2,248
                                       ======  ======  ====== ======  ======

AS REPORTED GROWTH RATES
  Database & Middleware                   44%     36%     40%    14%     28%
  Applications                            14%     26%     26%    20%     22%
    New Software License Revenues         33%     32%     35%    16%     26%
  Hardware Systems Products Revenues      *       *      287%    (3%)   201%

CONSTANT CURRENCY GROWTH RATES (2)
  Database & Middleware                   43%     36%     39%    12%     27%
  Applications                            14%     26%     24%    18%     20%
    New Software License Revenues         32%     32%     34%    14%     24%
  Hardware Systems Products Revenues      *       *      285%    (4%)   199%

                                       -------------------------------------

EUROPE / MIDDLE EAST / AFRICA

  Database & Middleware                $  279  $  426  $  505 $  925  $2,137
  Applications                             73     148     197    308     724
                                       ------  ------  ------ ------  ------
    New Software License Revenues      $  352  $  574  $  702 $1,233  $2,861
                                       ======  ======  ====== ======  ======
  Hardware Systems Products Revenues   $  338  $  329  $  330 $  341  $1,337
                                       ======  ======  ====== ======  ======

AS REPORTED GROWTH RATES
  Database & Middleware                   25%     (1%)    11%    23%     15%
  Applications                           (19%)    23%     47%    18%     20%
    New Software License Revenues         12%      5%     19%    22%     16%
  Hardware Systems Products Revenues      *       *      246%   (13%)   176%

CONSTANT CURRENCY GROWTH RATES (2)
  Database & Middleware                   32%      7%     12%     9%     12%
  Applications                           (16%)    31%     46%     7%     16%
    New Software License Revenues         18%     12%     20%     9%     13%
  Hardware Systems Products Revenues      *       *      246%   (21%)   165%

                                       -------------------------------------

ASIA PACIFIC

  Database & Middleware                $  212  $  323  $  315 $  485  $1,334
  Applications                             64      72      87    154     378
                                       ------  ------  ------ ------  ------
    New Software License Revenues      $  276  $  395  $  402 $  639  $1,712
                                       ======  ======  ====== ======  ======
  Hardware Systems Products Revenues   $  198  $  181  $  199 $  217  $  797
                                       ======  ======  ====== ======  ======

AS REPORTED GROWTH RATES
  Database & Middleware                   19%     27%     28%    20%     23%
  Applications                            54%     (1%)    45%    41%     33%
    New Software License Revenues         26%     21%     32%    24%     25%
  Hardware Systems Products Revenues      *       *      325%    (4%)   191%

CONSTANT CURRENCY GROWTH RATES (2)
  Database & Middleware                   13%     22%     20%     8%     15%
  Applications                            47%     (5%)    34%    27%     24%
    New Software License Revenues         19%     16%     23%    12%     16%
  Hardware Systems Products Revenues      *       *      295%   (13%)   173%

                                       -------------------------------------

TOTAL COMPANY

  Database & Middleware                $  937  $1,420  $1,575 $2,694  $6,626
  Applications                            349     579     639  1,042   2,609
                                       ------  ------  ------ ------  ------
    New Software License Revenues      $1,286  $1,999  $2,214 $3,736  $9,235
                                       ======  ======  ====== ======  ======
  Hardware Systems Products Revenues   $1,079  $1,112  $1,035 $1,157  $4,382
                                       ======  ======  ====== ======  ======

AS REPORTED GROWTH RATES
  Database & Middleware                   32%     21%     27%    18%     23%
  Applications                            10%     21%     34%    22%     23%
    New Software License Revenues         25%     21%     29%    19%     23%
  Hardware Systems Products Revenues      *       *      279%    (6%)   191%

CONSTANT CURRENCY GROWTH RATES (2)
  Database & Middleware                   32%     23%     26%    10%     19%
  Applications                            10%     22%     31%    16%     20%
    New Software License Revenues         25%     23%     27%    12%     19%
  Hardware Systems Products Revenues      *       *      274%   (11%)   184%



                                                  Fiscal 2012
                                       --------------------------------
                                         Q1      Q2     Q3   Q4   TOTAL
                                       ------  ------  ---- ---- ------

AMERICAS

  Database & Middleware                $  478  $  669            $1,146
  Applications                            249     358               608
                                       ------  ------  ---- ---- ------
    New Software License Revenues      $  727  $1,027            $1,754
                                       ======  ======  ==== ==== ======
  Hardware Systems Products Revenues   $  475  $  496            $  971
                                       ======  ======  ==== ==== ======

AS REPORTED GROWTH RATES
  Database & Middleware                    7%      0%                3%
  Applications                            18%      0%                6%
    New Software License Revenues         10%      0%                4%
  Hardware Systems Products Revenues     (12%)   (17%)             (15%)

CONSTANT CURRENCY GROWTH RATES (2)
  Database & Middleware                    6%      1%                3%
  Applications                            16%      1%                7%
    New Software License Revenues          9%      1%                4%
  Hardware Systems Products Revenues     (13%)   (17%)             (15%)

                                      ---------------------------------

EUROPE / MIDDLE EAST / AFRICA

  Database & Middleware                $  322  $  443            $  765
  Applications                            118     141               259
                                       ------  ------  ---- ---- ------
    New Software License Revenues      $  440  $  584            $1,024
                                       ======  ======  ==== ==== ======
  Hardware Systems Products Revenues   $  344  $  272            $  615
                                       ======  ======  ==== ==== ======

AS REPORTED GROWTH RATES
  Database & Middleware                   15%      4%                8%
  Applications                            63%     (4%)              18%
    New Software License Revenues         25%      2%               11%
  Hardware Systems Products Revenues       2%    (17%)              (8%)

CONSTANT CURRENCY GROWTH RATES (2)
  Database & Middleware                    5%      5%                5%
  Applications                            55%     (3%)              16%
    New Software License Revenues         15%      3%                7%
  Hardware Systems Products Revenues     (11%)   (17%)             (14%)

                                      ---------------------------------

ASIA PACIFIC

  Database & Middleware                $  270  $  367            $  637
  Applications                             61      70               131
                                       ------  ------  ---- ---- ------
    New Software License Revenues      $  331  $  437            $  768
                                       ======  ======  ==== ==== ======
  Hardware Systems Products Revenues   $  210  $  185            $  395
                                       ======  ======  ==== ==== ======

AS REPORTED GROWTH RATES
  Database & Middleware                   28%     14%               19%
  Applications                            (4%)    (4%)              (4%)
    New Software License Revenues         20%     11%               14%
  Hardware Systems Products Revenues       6%      2%                4%

CONSTANT CURRENCY GROWTH RATES (2)
  Database & Middleware                   15%     12%               13%
  Applications                           (11%)    (6%)              (9%)
    New Software License Revenues          9%      8%                9%
  Hardware Systems Products Revenues      (5%)    (1%)              (3%)

                                      ---------------------------------

TOTAL COMPANY

  Database & Middleware                $1,070  $1,479            $2,548
  Applications                            428     569               998
                                       ------  ------  ---- ---- ------
    New Software License Revenues      $1,498  $2,048            $3,546
                                       ======  ======  ==== ==== ======
  Hardware Systems Products Revenues   $1,029  $  953            $1,981
                                       ======  ======  ==== ==== ======

AS REPORTED GROWTH RATES
  Database & Middleware                   14%      4%                8%
  Applications                            23%     (2%)               8%
    New Software License Revenues         17%      2%                8%
  Hardware Systems Products Revenues      (5%)   (14%)             (10%)

CONSTANT CURRENCY GROWTH RATES (2)
  Database & Middleware                    8%      4%                6%
  Applications                            19%     (1%)               7%
    New Software License Revenues         11%      3%                6%
  Hardware Systems Products Revenues     (11%)   (14%)             (13%)

(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, 2011 and 2010 for the fiscal 2012 and fiscal
    2011 constant currency growth rate calculations presented, respectively,
    rather than the actual exchange rates in effect during the respective
    periods.

 *  Not meaningful



                                                                  APPENDIX A

                             ORACLE CORPORATION
                      Q2 FISCAL 2012 FINANCIAL RESULTS
                      EXPLANATION OF NON-GAAP MEASURES

To supplement our financial results presented on a GAAP basis, we use the non-GAAP measures indicated in the tables, which exclude certain business combination accounting entries and expenses related to acquisitions, as well as other significant expenses including stock-based compensation, that we believe are helpful in understanding our past financial performance and our future results. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Our management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Compensation of our executives is based in part on the performance of our business based on these non-GAAP measures. Our non-GAAP financial measures reflect adjustments based on the following items, as well as the related income tax effects:

-- Software license updates and product support and hardware systems support deferred revenues: Business combination accounting rules require us to account for the fair values of software license updates and product support contracts and hardware systems support contracts assumed in connection with our acquisitions. Because these support contracts are typically one year in duration, our GAAP revenues for the one year period subsequent to our acquisition of a business do not reflect the full amount of support revenues on these assumed support contracts that would have otherwise been recorded by the acquired entity. The non-GAAP adjustment to our software license updates and product support revenues and hardware systems support revenues is intended to include, and thus reflect, the full amount of such revenues. We believe the adjustment to these support revenues is useful to investors as a measure of the ongoing performance of our business. We have historically experienced high renewal rates on our software license updates and product support contracts and our objective is to increase the renewal rates on acquired and new hardware systems support contracts; however, we cannot be certain that our customers will renew our software license updates and product support contracts or our hardware systems support contracts.

-- Stock-based compensation expenses: We have excluded the effect of stock-based compensation expenses from our non-GAAP operating expenses and net income measures. Although stock-based compensation is a key incentive offered to our employees, and we believe such compensation contributed to the revenues earned during the periods presented and also believe it will contribute to the generation of future period revenues, we continue to evaluate our business performance excluding stock-based compensation expenses. Stock-based compensation expenses will recur in future periods.

-- Amortization of intangible assets: We have excluded the effect of amortization of intangible assets from our non-GAAP operating expenses and net income measures. Amortization of intangible assets is inconsistent in amount and frequency and is significantly affected by the timing and size of our acquisitions. Investors should note that the use of intangible assets contributed to our revenues earned during the periods presented and will contribute to our future period revenues as well. Amortization of intangible assets will recur in future periods.

-- Acquisition related and other expenses; and restructuring expenses: We have excluded the effect of acquisition related and other expenses and the effect of restructuring expenses from our non-GAAP operating expenses and net income measures. We incurred significant expenses in connection with our acquisitions and also incurred certain other operating expenses or income, which we generally would not have otherwise incurred in the periods presented as a part of our continuing operations. Acquisition related and other expenses consist of personnel related costs for transitional employees, other acquired employee related costs, stock-based compensation expenses (in addition to the stock-based compensation expenses described above), integration related professional services, certain business combination adjustments 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
Email Contact
Deborah Hellinger
Oracle Corporate Communications
1.212.508.7935
Email Contact

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