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 Total Cloud Revenues Up 28% but Would Have Been Up 34% in ConstantCurrency
   Wednesday, June 17, 2015 4:00:16 PM ET

Oracle Corporation (ORCL ) today announced fiscal 2015 Q4 results. The results were significantly impacted by the strengthening of the U.S. dollar compared to foreign currencies. Total Q4 Revenues were $10.7 billion, down 5% but would have been up 3% without the strengthening of the U.S. dollar. Software and Cloud Revenues were $8.4 billion, down 6%, but up 2% in constant currency. Cloud software as a service (SaaS) and platform as a service (PaaS) revenues were $416 million, growing 29%, and up 35% in constant currency. Cloud infrastructure as a service (IaaS) revenues were $160 million, growing 25%, and up 31% in constant currency. Hardware Systems Revenues were $1.4 billion, down 4%, but up 5% in constant currency.

Q4 Operating Income was $4.0 billion, and the Operating Margin was 37%. Non-GAAP Operating Income was $5.0 billion, and the non-GAAP Operating Margin was 46%. Net Income was $2.8 billion while non-GAAP Net Income was $3.5 billion. Earnings Per Share was $0.62, down 23%, and down 12% in constant currency, while non-GAAP Earnings Per Share was $0.78, down 14%, and down 5% in constant currency.

Short-term Deferred revenues were $7.2 billion, slightly down, but up 9% in constant currency compared with a year ago. Operating Cash Flow on a trailing twelve-month basis was $14.3 billion.

For fiscal year 2015, Total Revenues were $38.2 billion, essentially unchanged, but up 4% in constant currency. Software and Cloud Revenues were $29.5 billion, up 1%, and up 5% in constant currency. Cloud SaaS and PaaS revenues were $1.5 billion, up 32%, and up 35% in constant currency. Cloud IaaS revenues were $608 million, up 33%, and up 36% in constant currency. Total Hardware System Revenues were $5.2 billion, down 3%, but up 2% in constant currency. Operating Income was $13.9 billion, and the Operating Margin was 36%. Non-GAAP Operating Income was $17.4 billion, and non-GAAP Operating Margin was 45%. Net Income was $9.9 billion, while non-GAAP Net Income was $12.5 billion. Earnings Per Share was $2.21, down 7%, but unchanged in constant currency. Non-GAAP Earnings Per Share was $2.77 down 3%, but up 2% in constant currency.

"We sold an astonishing $426 million of new SaaS and PaaS annually recurring cloud subscription revenue in Q4," said Oracle CEO, Safra Catz. "We expect our rapidly increasing cloud sales to quickly translate into significantly more revenue and profits for Oracle Corporation. For example, SaaS and PaaS revenues grew at a 34% constant currency rate in our just completed Q4, but we expect that revenue growth rate to jump to around 60% in constant currency this new fiscal year."

"Coming into Q4, we forecast selling $300 million of new SaaS and PaaS annual recurring revenue," said Oracle CEO, Mark Hurd. "We dramatically beat that forecast by selling a cloud industry all-time-record amount of $426 million of new SaaS and PaaS business. That is a year-over-year bookings growth rate of over 200%. As our multi-billion dollar cloud business gets bigger, our SaaS and PaaS revenue growth rates are on their way up to 60% in constant currency. Compare this to our primary cloud competitors’ whose own revenue growth forecasts are on their way down to 44% and 22%."

"We expect to book between $1.5 and $2.0 billion of new SaaS and PaaS business this fiscal year," said Oracle Executive Chairman and CTO Larry Ellison. "That means Oracle would sell more new SaaS and PaaS business than salesforce.com plans to sell in their current fiscal year -- the only remaining question is how much more. Oracle’s planned SaaS and PaaS revenue growth rate is around 60% in constant currency; salesforce.com has a planned growth rate of around 20%. When you contrast those growth rates it becomes clear that Oracle is on its way to becoming the world’s largest enterprise cloud company."

The Board of Directors also declared a quarterly cash dividend of $0.15 per share of outstanding common stock. This dividend will be paid to stockholders of record as of the close of business on July 8, 2015, with a payment date of July 29, 2015.

Q4 Fiscal 2015 Earnings Conference Call and Webcast

Oracle will hold a conference call and webcast today to discuss these results at 2:00 p.m. Pacific. You may listen to the call by dialing (816) 287-5563, Passcode: 425392. To access the live webcast of this event, please visit the Oracle Investor Relations website at http://www.oracle.com/investor . In addition, Oracle’s Q4 results and Fiscal 2015 financial tables are available on the Oracle Investor Relations website.

A replay of the conference call will also be available by dialing (855) 859-2056 or (404) 537-3406, Pass Code: 62149434.

About Oracle

Oracle engineers hardware and software to work together in the cloud and in your data center. For more information about Oracle (ORCL ), visit www.oracle.com or contact Investor Relations at investor_us@oracle.com or (650) 506-4073.

Trademarks

Oracle and Java are registered trademarks of Oracle and/or its affiliates. Other names may be trademarks of their respective owners.

"Safe Harbor" Statement: Statements in this press release relating to Oracle’s future plans, expectations, beliefs, intentions and prospects, including statements regarding our expectations of future revenues and profits from our cloud business, our expected future bookings and the growth rates for such business, are "forward-looking statements" and are subject to material risks and uncertainties. Many factors could affect our current expectations and our actual results, and could cause actual results to differ materially. We presently consider the following to be among the important factors that could cause actual results to differ materially from expectations: (1) Economic, geopolitical 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, 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 SaaS, PaaS, IaaS and our new Oracle Cloud database 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 17, 2015. Oracle undertakes no duty to update any statement in light of new information or future events.



                             ORACLE CORPORATION

                      Q4 FISCAL 2015 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
                       2015  Revenues   2014  Revenues   in US $      (1)
                     ------- -------- ------- -------- ---------- ----------
REVENUES
  New software
   licenses          $ 3,138    29%   $ 3,769    33%      (17%)      (10%)
  Cloud software as
   a service and
   platform as a
   service               416    4%        322    3%        29%        35%
  Cloud
   infrastructure as
   a service             160    1%        128    1%        25%        31%
  Software license
   updates and
   product support     4,686    44%     4,695    42%       0%         8%
                     ------- -------- ------- --------
    Software and
     Cloud Revenues    8,400    78%     8,914    79%      (6%)        2%
                     ------- -------- ------- --------
  Hardware systems
   products              818    8%        870    8%       (6%)        3%
  Hardware systems
   support               589    6%        596    5%       (1%)        7%
                     ------- -------- ------- --------
    Hardware Systems
     Revenues          1,407    14%     1,466    13%      (4%)        5%
                     ------- -------- ------- --------
    Services
     Revenues            899    8%        940    8%       (4%)        5%
                     ------- -------- ------- --------

      Total Revenues  10,706   100%    11,320   100%      (5%)        3%
                     ------- -------- ------- --------

OPERATING EXPENSES
  Sales and
   marketing           2,212    21%     2,241    20%      (1%)        6%
  Cloud software as
   a service and
   platform as a
   service               256    2%        137    1%        86%        97%
  Cloud
   infrastructure as
   a service              90    1%         84    1%        7%         11%
  Software license
   updates and
   product support       331    3%        303    3%        9%         19%
  Hardware systems
   products              438    4%        443    4%       (1%)        9%
  Hardware systems
   support               188    2%        205    2%       (9%)       (1%)
  Services               750    7%        759    7%       (1%)        8%
  Research and
   development         1,435    13%     1,349    12%       6%         9%
  General and
   administrative        278    3%        265    2%        5%         11%
  Amortization of
   intangible assets     507    5%        568    5%       (11%)      (11%)
  Acquisition
   related and other     200    2%         20    0%       895%       900%
  Restructuring           39    0%         37    0%        6%         27%
                     ------- -------- ------- --------

      Total
       Operating
       Expenses        6,724    63%     6,411    57%       5%         11%
                     ------- -------- ------- --------

OPERATING INCOME       3,982    37%     4,909    43%      (19%)      (9%)
  Interest expense     (325)   (3%)     (239)   (2%)       36%        36%
  Non-operating
   income (expense),
   net                    40    1%       (81)    0%       150%       149%
                     ------- -------- ------- --------

INCOME BEFORE
 PROVISION FOR
 INCOME TAXES          3,697    35%     4,589    41%      (19%)      (9%)
                     ------- -------- ------- --------
  Provision for
   income taxes          939    9%        943    9%        0%         13%
                     ------- -------- ------- --------

NET INCOME           $ 2,758    26%   $ 3,646    32%      (24%)      (14%)
                     ======= ======== ======= ========

EARNINGS PER SHARE:
  Basic              $  0.63          $  0.81
  Diluted            $  0.62          $  0.80

WEIGHTED AVERAGE
 COMMON SHARES
 OUTSTANDING:
  Basic                4,359            4,475
  Diluted              4,463            4,569

(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, 2014, 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, 2015
    compared with the corresponding prior year period decreased our revenues
    by 8 percentage points, operating expenses by 6 percentage points and
    operating income by 10 percentage points.




                             ORACLE CORPORATION

                      Q4 FISCAL 2015 FINANCIAL RESULTS
      RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1)
                   ($ in millions, except per share data)

                                       Three Months Ended May 31,
                            -----------------------------------------------
                                              2015                    2014
                              2015            Non-    2014            Non-
                              GAAP    Adj.    GAAP    GAAP    Adj.    GAAP
                            ------- ------- ------- ------- ------- -------

TOTAL REVENUES (3) (4) (5)  $10,706 $     6 $10,712 $11,320 $     6 $11,326

TOTAL SOFTWARE AND CLOUD
 REVENUES (3) (4)           $ 8,400 $     5 $ 8,405 $ 8,914 $     5 $ 8,919
  New software licenses       3,138       -   3,138   3,769       -   3,769
  Cloud software as a
   service and platform as a
   service (3)                  416       3     419     322       5     327
  Cloud infrastructure as a
   service                      160       -     160     128       -     128
  Software license updates
   and product support (4)    4,686       2   4,688   4,695       -   4,695

TOTAL HARDWARE SYSTEMS
 REVENUES (5)               $ 1,407 $     1 $ 1,408 $ 1,466 $     1 $ 1,467
  Hardware systems products     818       -     818     870       -     870
  Hardware systems support
   (5)                          589       1     590     596       1     597

TOTAL OPERATING EXPENSES    $ 6,724 $ (990) $ 5,734 $ 6,411 $ (841) $ 5,570
  Stock-based compensation
   (6)                          244   (244)       -     216   (216)       -
  Amortization of intangible
   assets (7)                   507   (507)       -     568   (568)       -
  Acquisition related and
   other                        200   (200)       -      20    (20)       -
  Restructuring                  39    (39)       -      37    (37)       -

OPERATING INCOME            $ 3,982 $   996 $ 4,978 $ 4,909 $   847 $ 5,756
OPERATING MARGIN %              37%             46%     43%             51%

INCOME TAX EFFECTS (8)      $   939 $   258 $ 1,197 $   943 $   308 $ 1,251

NET INCOME                  $ 2,758 $   738 $ 3,496 $ 3,646 $   539 $ 4,185

DILUTED EARNINGS PER SHARE  $  0.62         $  0.78 $  0.80         $  0.92

DILUTED WEIGHTED AVERAGE
 COMMON SHARES OUTSTANDING    4,463       -   4,463   4,569       -   4,569
                                                  % Increase (Decrease)
                            % Increase (Decrease)  in Constant Currency
                                   in US $                 (2)
                            --------------------- ---------------------
                               GAAP     Non-GAAP     GAAP     Non-GAAP
                            ---------- ---------- ---------- ----------

TOTAL REVENUES (3) (4) (5)     (5%)       (5%)        3%         3%

TOTAL SOFTWARE AND CLOUD
 REVENUES (3) (4)              (6%)       (6%)        2%         2%
  New software licenses        (17%)      (17%)      (10%)      (10%)
  Cloud software as a
   service and platform as a
   service (3)                  29%        28%        35%        34%
  Cloud infrastructure as a
   service                      25%        25%        31%        31%
  Software license updates
   and product support (4)      0%         0%         8%         8%

TOTAL HARDWARE SYSTEMS
 REVENUES (5)                  (4%)       (4%)        5%         5%
  Hardware systems products    (6%)       (6%)        3%         3%
  Hardware systems support
   (5)                         (1%)       (1%)        7%         7%

TOTAL OPERATING EXPENSES        5%         3%         11%        10%
  Stock-based compensation
   (6)                          13%         *         13%         *
  Amortization of intangible
   assets (7)                  (11%)        *        (11%)        *
  Acquisition related and
   other                       895%         *        900%         *
  Restructuring                 6%          *         27%         *

OPERATING INCOME               (19%)      (14%)      (9%)       (5%)
OPERATING MARGIN %           (617) bp.  (435) bp.  (483) bp.  (365) bp.

INCOME TAX EFFECTS (8)          0%        (4%)        13%        6%

NET INCOME                     (24%)      (16%)      (14%)      (8%)

DILUTED EARNINGS PER SHARE     (23%)      (14%)      (12%)      (5%)

DILUTED WEIGHTED AVERAGE
 COMMON SHARES OUTSTANDING     (2%)       (2%)       (2%)       (2%)

(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, 2014, 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, 2015, approximately $4 million in estimated revenues
    related to assumed cloud software as a service and platform as a service
    contracts will not be recognized for fiscal 2016 due to business
    combination accounting rules.

(4) As of May 31, 2015, approximately $2 million in estimated revenues
    related to assumed software license updates and product support
    contracts will not be recognized for fiscal 2016 due to business
    combination accounting rules.

(5) As of May 31, 2015, approximately $1 million in estimated revenues
    related to hardware systems support contracts will not be recognized for
    fiscal 2016 due to business combination accounting rules.

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

                                Three Months Ended      Three Months Ended
                                   May 31, 2015            May 31, 2014
                             ----------------------- -----------------------
                                               Non-                    Non-
                               GAAP   Adj.     GAAP    GAAP   Adj.     GAAP
                             ------- ------  ------- ------- ------  -------
    Sales and marketing      $    49 $  (49) $     - $    46 $  (46) $     -
    Cloud software as a
     service and platform as
     a service                     3     (3)       -       3     (3)       -
    Cloud infrastructure as a
     service                       1     (1)       -       1     (1)       -
    Software license updates
     and product support           6     (6)       -       6     (6)       -
    Hardware systems products      2     (2)       -       1     (1)       -
    Hardware systems support       2     (2)       -       1     (1)       -
    Services                       8     (8)       -      12    (12)       -
    Research and development     142   (142)       -     101   (101)       -
    General and
     administrative               31    (31)       -      45    (45)       -
                             ------- ------  ------- ------- ------  -------
      Subtotal                   244   (244)       -     216   (216)       -
                             ------- ------  ------- ------- ------  -------
    Acquisition related and
     other                         -      -        -       7     (7)       -
                             ------- ------  ------- ------- ------  -------
      Total stock-based
       compensation          $   244 $ (244) $     - $   223 $ (223) $     -
                             ======= ======  ======= ======= ======  =======

(7) Estimated future annual amortization expense related to intangible
    assets as of May 31, 2015 was as follows:

    Fiscal 2016              $ 1,624
    Fiscal 2017                  995
    Fiscal 2018                  848
    Fiscal 2019                  742
    Fiscal 2020                  598
    Thereafter                 1,599
                             -------
      Total intangible
       assets, net           $ 6,406
                             =======

(8) Income tax effects were calculated reflecting an effective GAAP tax
    rate of 25.4% and 20.5% in the fourth quarter of fiscal 2015 and 2014,
    respectively, and an effective non-GAAP tax rate of 25.5% and 23.0% in
    the fourth quarter of fiscal 2015 and 2014, respectively. The
    difference between our GAAP and non-GAAP tax rates in the fourth
    quarter of fiscal 2014 was 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 2015 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
                      2015   Revenues   2014  Revenues   in US $      (1)
                    -------- -------- ------- -------- ---------- ----------
REVENUES
  New software
   licenses         $  8,535    22%   $ 9,416    25%      (9%)       (4%)
  Cloud software as
   a service and
   platform as a
   service             1,485    4%      1,121    3%        32%        35%
  Cloud
   infrastructure as
   a service             608    2%        456    1%        33%        36%
  Software license
   updates and
   product support    18,847    49%    18,206    47%       4%         8%
                    -------- -------- ------- --------
    Software and
     Cloud Revenues   29,475    77%    29,199    76%       1%         5%
                    -------- -------- ------- --------
  Hardware systems
   products            2,825    8%      2,976    8%       (5%)        0%
  Hardware systems
   support             2,380    6%      2,396    6%       (1%)        4%
                    -------- -------- ------- --------
    Hardware Systems
     Revenues          5,205    14%     5,372    14%      (3%)        2%
                    -------- -------- ------- --------
  Services Revenues    3,546    9%      3,704    10%      (4%)        0%
                    -------- -------- ------- --------
      Total Revenues  38,226   100%    38,275   100%       0%         4%
                    -------- -------- ------- --------

OPERATING EXPENSES
  Sales and
   marketing           7,655    20%     7,567    20%       1%         6%
  Cloud software as
   a service and
   platform as a
   service               773    2%        455    1%        70%        75%
  Cloud
   infrastructure as
   a service             344    1%        308    1%        12%        14%
  Software license
   updates and
   product support     1,199    3%      1,162    3%        3%         8%
  Hardware systems
   products            1,471    4%      1,521    4%       (3%)        3%
  Hardware systems
   support               816    2%        836    2%       (2%)        2%
  Services             2,929    8%      2,954    8%       (1%)        4%
  Research and
   development         5,524    14%     5,151    13%       7%         8%
  General and
   administrative      1,077    3%      1,038    3%        4%         7%
  Amortization of
   intangible assets   2,149    5%      2,300    6%       (7%)       (7%)
  Acquisition
   related and other     211    1%         41    0%       412%       411%
  Restructuring          207    1%        183    0%        14%        22%
                    -------- -------- ------- --------
      Total
       Operating
       Expenses       24,355    64%    23,516    61%       4%         7%
                    -------- -------- ------- --------

OPERATING INCOME      13,871    36%    14,759    39%      (6%)        0%
  Interest expense   (1,143)   (3%)     (914)   (3%)       25%        25%
  Non-operating
   income (expense),
   net                   106    0%      (141)    0%       175%       187%
                    -------- -------- ------- --------

INCOME BEFORE
 PROVISION FOR
 INCOME TAXES         12,834    33%    13,704    36%      (6%)        1%
                    -------- -------- ------- --------
  Provision for
   income taxes        2,896    7%      2,749    7%        5%         13%
                    -------- -------- ------- --------

NET INCOME          $  9,938    26%   $10,955    29%      (9%)       (2%)
                    ======== ======== ======= ========

EARNINGS PER SHARE:
  Basic             $   2.26          $  2.42
  Diluted           $   2.21          $  2.38

WEIGHTED AVERAGE
 COMMON SHARES
 OUTSTANDING:
  Basic                4,404            4,528
  Diluted              4,503            4,604

(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, 2014, 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, 2015 compared
    with the corresponding prior year period decreased our revenues by 4
    percentage points, operating expenses by 3 percentage points and
    operating income by 6 percentage points.




                             ORACLE CORPORATION

                 FISCAL 2015 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,
                      -----------------------------------------------------
                        2015              2015     2014              2014
                        GAAP     Adj.   Non-GAAP   GAAP     Adj.   Non-GAAP
                      -------- -------- -------- -------- -------- --------

TOTAL REVENUES (3)
 (4) (5)              $ 38,226 $     27 $ 38,253 $ 38,275 $     31 $ 38,306

TOTAL SOFTWARE AND
 CLOUD REVENUES (3)
 (4)                  $ 29,475 $     23 $ 29,498 $ 29,199 $     20 $ 29,219
  New software
   licenses              8,535        -    8,535    9,416        -    9,416
  Cloud software as a
   service and
   platform as a
   service (3)           1,485       12    1,497    1,121       17    1,138
  Cloud
   infrastructure as
   a service               608        -      608      456        -      456
  Software license
   updates and
   product support
   (4)                  18,847       11   18,858   18,206        3   18,209

TOTAL HARDWARE
 SYSTEMS REVENUES (5) $  5,205 $      4 $  5,209 $  5,372 $     11 $  5,383
  Hardware systems
   products              2,825        -    2,825    2,976        -    2,976
  Hardware systems
   support (5)           2,380        4    2,384    2,396       11    2,407

TOTAL OPERATING
 EXPENSES             $ 24,355 $(3,495) $ 20,860 $ 23,516 $(3,319) $ 20,197
  Stock-based
   compensation (6)        928    (928)        -      795    (795)        -
  Amortization of
   intangible assets
   (7)                   2,149  (2,149)        -    2,300  (2,300)        -
  Acquisition related
   and other               211    (211)        -       41     (41)        -
  Restructuring            207    (207)        -      183    (183)        -

OPERATING INCOME      $ 13,871 $  3,522 $ 17,393 $ 14,759 $  3,350 $ 18,109

OPERATING MARGIN %         36%               45%      39%               47%

INCOME TAX EFFECTS
 (8)                  $  2,896 $    971 $  3,867 $  2,749 $  1,091 $  3,840

NET INCOME            $  9,938 $  2,551 $ 12,489 $ 10,955 $  2,259 $ 13,214

DILUTED EARNINGS PER
 SHARE                $   2.21          $   2.77 $   2.38          $   2.87

DILUTED WEIGHTED
 AVERAGE COMMON
 SHARES OUTSTANDING      4,503        -    4,503    4,604        -    4,604

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

TOTAL REVENUES (3)
 (4) (5)                 0%         0%         4%         4%

TOTAL SOFTWARE AND
 CLOUD REVENUES (3)
 (4)                     1%         1%         5%         5%
  New software
   licenses             (9%)       (9%)       (4%)       (4%)
  Cloud software as a
   service and
   platform as a
   service (3)           32%        32%        35%        34%
  Cloud
   infrastructure as
   a service             33%        33%        36%        36%
  Software license
   updates and
   product support
   (4)                   4%         4%         8%         8%

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

TOTAL OPERATING
 EXPENSES                4%         3%         7%         7%
  Stock-based
   compensation (6)      17%         *         17%         *
  Amortization of
   intangible assets
   (7)                  (7%)         *        (7%)         *
  Acquisition related
   and other            412%         *        411%         *
  Restructuring          14%         *         22%         *

OPERATING INCOME        (6%)       (4%)        0%         1%

OPERATING MARGIN %    (227) bp.  (180) bp.  (146) bp.  (135) bp.

INCOME TAX EFFECTS
 (8)                     5%         1%         13%        7%

NET INCOME              (9%)       (5%)       (2%)        0%

DILUTED EARNINGS PER
 SHARE                  (7%)       (3%)        0%         2%

DILUTED WEIGHTED
 AVERAGE COMMON
 SHARES OUTSTANDING     (2%)       (2%)       (2%)       (2%)

(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, 2014, 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, 2015, approximately $4 million in estimated revenues
    related to assumed cloud software as a service and platform as a service
    contracts will not be recognized for fiscal 2016 due to business
    combination accounting rules.

(4) As of May 31, 2015, approximately $2 million in estimated revenues
    related to assumed software license updates and product support
    contracts will not be recognized for fiscal 2016 due to business
    combination accounting rules.

(5) As of May 31, 2015, approximately $1 million in estimated revenues
    related to hardware systems support contracts will not be recognized for
    fiscal 2016 due to business combination accounting rules.

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

                                    Year Ended              Year Ended
                                   May 31, 2015            May 31, 2014
                             ----------------------- -----------------------
                                               Non-                    Non-
                               GAAP   Adj.     GAAP    GAAP   Adj.     GAAP
                             ------- ------  ------- ------- ------  -------
    Sales and marketing      $   180 $ (180) $     - $   165 $ (165) $     -
    Cloud software as a
     service and platform as
     a service                    10    (10)       -       8     (8)       -
    Cloud infrastructure as a
     service                       5     (5)       -       4     (4)       -
    Software license updates
     and product support          21    (21)       -      22    (22)       -
    Hardware systems products      6     (6)       -       5     (5)       -
    Hardware systems support       6     (6)       -       6     (6)       -
    Services                      30    (30)       -      29    (29)       -
    Research and development     522   (522)       -     385   (385)       -
    General and
     administrative              148   (148)       -     171   (171)       -
                             ------- ------  ------- ------- ------  -------
      Subtotal                   928   (928)       -     795   (795)       -
                             ------- ------  ------- ------- ------  -------
    Acquisition related and
     other                         5     (5)       -      10    (10)       -
                             ------- ------  ------- ------- ------  -------
      Total stock-based
       compensation          $   933 $ (933) $     - $   805 $ (805) $     -
                             ======= ======  ======= ======= ======  =======

(7) Estimated future annual amortization expense related to intangible
    assets as of May 31, 2015 was as follows:

    Fiscal 2016              $ 1,624
    Fiscal 2017                  995
    Fiscal 2018                  848
    Fiscal 2019                  742
    Fiscal 2020                  598
    Thereafter                 1,599
                             -------
      Total intangible
       assets, net           $ 6,406
                             =======

(8) Income tax effects were calculated reflecting an effective GAAP tax rate
    of 22.6% and 20.1% in fiscal 2015 and 2014, respectively, and an
    effective non-GAAP tax rate of 23.6% and 22.5% in fiscal 2015 and 2014,
    respectively. The differences between our GAAP and non-GAAP tax rates in
    fiscal 2015 and 2014 were primarily due to the net tax effects of
    acquisition related items, primarily the tax effects of amortization of
    intangible assets.

   *Not meaningful



                             ORACLE CORPORATION

                        FISCAL 2015 FINANCIAL RESULTS
                    CONDENSED CONSOLIDATED BALANCE SHEETS
                               ($ in millions)

                                                   May 31,        May 31,
                                                    2015           2014
                                               -------------- --------------
ASSETS

  Current Assets:
    Cash and cash equivalents                  $       21,716 $       17,769
    Marketable securities                              32,652         21,050
    Trade receivables, net                              5,618          6,087
    Inventories                                           314            189
    Deferred tax assets                                   663            914
    Prepaid expenses and other current assets           2,220          2,119
                                               -------------- --------------
      Total Current Assets                             63,183         48,128

  Non-Current Assets:
    Property, plant and equipment, net                  3,686          3,061
    Intangible assets, net                              6,406          6,137
    Goodwill                                           34,087         29,652
    Deferred tax assets                                   795            837
    Other assets                                        2,746          2,451
                                               -------------- --------------
      Total Non-Current Assets                         47,720         42,138
                                               -------------- --------------

TOTAL ASSETS                                   $      110,903 $       90,266
                                               ============== ==============

LIABILITIES AND EQUITY

  Current Liabilities:
    Notes payable, current                     $        1,999 $        1,508
    Accounts payable                                      806            471
    Accrued compensation and related benefits           1,839          1,940
    Income taxes payable                                  532            416
    Deferred revenues                                   7,245          7,269
    Other current liabilities                           2,870          2,785
                                               -------------- --------------
      Total Current Liabilities                        15,291         14,389
  Non-Current Liabilities:
    Notes payable, non-current                         39,959         22,589
    Income taxes payable                                4,386          4,184
    Other non-current liabilities                       2,169          1,657
                                               -------------- --------------
      Total Non-Current Liabilities                    46,514         28,430

  Equity                                               49,098         47,447
                                               -------------- --------------

TOTAL LIABILITIES AND EQUITY                   $      110,903 $       90,266
                                               ============== ==============



                             ORACLE CORPORATION

                        FISCAL 2015 FINANCIAL RESULTS
               CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                               ($ in millions)

                                                    Year Ended May 31,
                                               ----------------------------
                                                    2015           2014
                                               -------------  -------------
Cash Flows From Operating Activities:
  Net income                                   $       9,938  $      10,955
  Adjustments to reconcile net income to net
   cash provided by operating activities:
    Depreciation                                         712            608
    Amortization of intangible assets                  2,149          2,300
    Deferred income taxes                               (548)          (248)
    Stock-based compensation                             933            805
    Tax benefits on the exercise of stock
     options and vesting of restricted stock-
     based awards                                        396            480
    Excess tax benefits on the exercise of
     stock options and vesting of restricted
     stock-based awards                                 (244)          (250)
    Other, net                                           327            311
    Changes in operating assets and
     liabilities, net of effects from
     acquisitions:
      Decrease in trade receivables, net                 264            146
      (Increase) decrease in inventories                 (96)            57
      Increase in prepaid expenses and other
       assets                                           (387)          (143)
      Increase in accounts payable and other
       liabilities                                       247             48
      Decrease in income taxes payable                   (10)          (320)
      Increase in deferred revenues                      655            172
                                               -------------  -------------

        Net cash provided by operating
         activities                                   14,336         14,921
                                               -------------  -------------

Cash Flows From Investing Activities:
  Purchases of marketable securities and other
   investments                                       (31,421)       (32,316)
  Proceeds from maturities and sales of
   marketable securities and other investments        20,004         28,845
  Acquisitions, net of cash acquired                  (6,239)        (3,488)
  Capital expenditures                                (1,391)          (580)
                                               -------------  -------------

        Net cash used for investing activities       (19,047)        (7,539)
                                               -------------  -------------

Cash Flows From Financing Activities:
  Payments for repurchases of common stock            (8,087)        (9,813)
  Proceeds from issuances of common stock              1,802          2,135
  Payments of dividends to stockholders               (2,255)        (2,178)
  Proceeds from borrowings, net of issuance
   costs                                              19,842          5,566
  Repayments of borrowings                            (1,500)             -
  Excess tax benefits on the exercise of stock
   options and vesting of restricted stock-
   based awards                                          244            250
  Distributions to noncontrolling interests             (196)           (28)
                                               -------------  -------------

        Net cash provided by (used for)
         financing activities                          9,850         (4,068)
                                               -------------  -------------

Effect of exchange rate changes on cash and
 cash equivalents                                     (1,192)          (158)
                                               -------------  -------------
Net increase in cash and cash equivalents              3,947          3,156
                                               -------------  -------------
Cash and cash equivalents at beginning of
 period                                               17,769         14,613
                                               -------------  -------------
Cash and cash equivalents at end of period     $      21,716  $      17,769
                                               =============  =============



                             ORACLE CORPORATION
                        FISCAL 2015 FINANCIAL RESULTS
                  FREE CASH FLOW - TRAILING 4-QUARTERS (1)
                               ($ in millions)

                                                  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%

                                                 Fiscal 2015
                                   ---------------------------------------
                                      Q1        Q2        Q3         Q4
                                   --------  --------  --------   --------

GAAP Operating Cash Flow           $ 15,357  $ 15,273  $ 14,509   $ 14,336

Capital Expenditures (2)               (628)     (727)     (948)    (1,391)
                                   --------  --------  --------   --------

Free Cash Flow                     $ 14,729  $ 14,546  $ 13,561   $ 12,945
                                   ========  ========  ========   ========

% Growth over prior year                  4%        0%       (6)%      (10)%


GAAP Net Income                    $ 10,948  $ 10,896  $ 10,827   $  9,938

Free Cash Flow as a % of Net Income     135%      133%      125%       130%

(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 2015 FINANCIAL RESULTS
          SUPPLEMENTAL ANALYSIS OF GAAP REVENUES AND HEADCOUNT (1)
                               ($ in millions)

                                          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
                     ========   ========   ========   ========   ========

                                          Fiscal 2015
                     ----------------------------------------------------
                        Q1         Q2         Q3         Q4        TOTAL
                     --------   --------   --------   --------   --------
REVENUES
  New software
   licenses          $  1,370   $  2,045   $  1,982   $  3,138   $  8,535
  Cloud software as a
   service and
   platform as a
   service                337        361        372        416      1,485
  Cloud
   infrastructure as
   a service              138        155        155        160        608
  Software license
   updates and
   product support      4,731      4,768      4,661      4,686     18,847
                     --------   --------   --------   --------   --------
    Software and
     Cloud Revenues     6,576      7,329      7,170      8,400     29,475

  Hardware systems
   products               578        717        712        818      2,825
  Hardware systems
   support                587        617        587        589      2,380
                     --------   --------   --------   --------   --------
    Hardware Systems
     Revenues           1,165      1,334      1,299      1,407      5,205

    Services Revenues     855        935        858        899      3,546

                     --------   --------   --------   --------   --------
      Total Revenues $  8,596   $  9,598   $  9,327   $ 10,706   $ 38,226
                     ========   ========   ========   ========   ========

AS REPORTED REVENUE
 GROWTH RATES
  New software
   licenses                (2%)       (4%)       (7%)      (17%)       (9%)
  Cloud software as a
   service and
   platform as a
   service                 32%        39%        30%        29%        32%
  Cloud
   infrastructure as
   a service               26%        60%        28%        25%        33%
  Software license
   updates and
   product support          7%         6%         2%         0%         4%
    Software and
     Cloud Revenues         6%         5%         1%        (6%)        1%

  Hardware systems
   products               (14%)        0%        (2%)       (6%)       (5%)
  Hardware systems
   support                 (1%)        1%        (2%)       (1%)       (1%)
    Hardware Systems
     Revenues              (8%)        1%        (2%)       (4%)       (3%)

    Services Revenues      (7%)       (3%)       (3%)       (4%)       (4%)

      Total Revenues        3%         3%         0%        (5%)        0%

CONSTANT CURRENCY
 GROWTH RATES (2)
  New software
   licenses                (2%)        0%         0%       (10%)       (4%)
  Cloud software as a
   service and
   platform as a
   service                 32%        41%        34%        35%        35%
  Cloud
   infrastructure as
   a service               25%        62%        32%        31%        36%
  Software license
   updates and
   product support          6%         9%         8%         8%         8%
    Software and
     Cloud Revenues         6%         8%         7%         2%         5%

  Hardware systems
   products               (14%)        4%         6%         3%         0%
  Hardware systems
   support                 (2%)        5%         4%         7%         4%
    Hardware Systems
     Revenues              (8%)        4%         5%         5%         2%

    Services Revenues      (8%)        1%         3%         5%         0%

      Total Revenues        2%         7%         6%         3%         4%

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

GEOGRAPHIC REVENUES

REVENUES
  Americas           $  4,620   $  5,221   $  5,134   $  6,133   $ 21,107
  Europe, Middle East
   & Africa             2,589      2,911      2,813      3,067     11,380
  Asia Pacific          1,387      1,466      1,380      1,506      5,739
                     --------   --------   --------   --------   --------
      Total Revenues $  8,596   $  9,598   $  9,327   $ 10,706   $ 38,226
                     ========   ========   ========   ========   ========


HEADCOUNT

GEOGRAPHIC AREA
  Americas             54,073     57,243     58,117     58,415
  Europe, Middle East
   & Africa            23,349     26,997     26,989     26,988
  Asia Pacific         45,496     46,312     46,456     46,962
                     --------   --------   --------   --------   --------
      Total Company   122,918    130,552    131,562    132,365
                     ========   ========   ========   ========   ========

(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, 2014 and 2013 for the fiscal 2015 and fiscal
    2014 constant currency growth rate calculations presented, respectively,
    rather than the actual exchange rates in effect during the respective
    periods.



                             ORACLE CORPORATION
                        FISCAL 2015 FINANCIAL RESULTS
                SUPPLEMENTAL GEOGRAPHIC REVENUES ANALYSIS (1)
                               ($ in millions)

                                            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%

                                           Fiscal 2015
                         -----------------------------------------------
                            Q1        Q2        Q3        Q4      TOTAL
                         -------   -------   -------   -------   -------

AMERICAS
  Software and cloud
   revenues              $ 3,614   $ 4,044   $ 4,021   $ 4,926   $16,604
                         =======   =======   =======   =======   =======
  Hardware systems
   revenues              $   583   $   716   $   686   $   751   $ 2,737
                         =======   =======   =======   =======   =======

AS REPORTED GROWTH RATES
  Software and cloud
   revenues                    5%        6%        5%        6%        6%
  Hardware systems
   revenues                   (9%)       3%        5%        1%        0%

CONSTANT CURRENCY GROWTH
 RATES (2)
  Software and cloud
   revenues                    6%        8%        7%        9%        7%
  Hardware systems
   revenues                   (8%)       5%        7%        4%        2%

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

EUROPE / MIDDLE EAST /
 AFRICA
  Software and cloud
   revenues              $ 1,992   $ 2,234   $ 2,169   $ 2,369   $ 8,764
                         =======   =======   =======   =======   =======
  Hardware systems
   revenues              $   338   $   380   $   379   $   423   $ 1,519
                         =======   =======   =======   =======   =======

AS REPORTED GROWTH RATES
  Software and cloud
   revenues                   10%        4%       (3%)     (22%)      (5%)
  Hardware systems
   revenues                   (6%)       2%       (6%)      (4%)      (3%)

CONSTANT CURRENCY GROWTH
 RATES (2)
  Software and cloud
   revenues                    7%        9%        9%       (8%)       3%
  Hardware systems
   revenues                   (7%)       8%        8%       15%        6%

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

ASIA PACIFIC
  Software and cloud
   revenues              $   970   $ 1,051   $   980   $ 1,105   $ 4,107
                         =======   =======   =======   =======   =======
  Hardware systems
   revenues              $   244   $   238   $   234   $   233   $   949
                         =======   =======   =======   =======   =======

AS REPORTED GROWTH RATES
  Software and cloud
   revenues                    3%        2%       (3%)     (10%)      (3%)
  Hardware systems
   revenues                   (8%)      (7%)     (12%)     (16%)     (11%)

CONSTANT CURRENCY GROWTH
 RATES (2)
  Software and cloud
   revenues                    2%        7%        4%       (1%)       3%
  Hardware systems
   revenues                   (8%)      (3%)      (6%)      (8%)      (6%)

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

TOTAL COMPANY
  Software and cloud
   revenues              $ 6,576   $ 7,329   $ 7,170   $ 8,400   $29,475
                         =======   =======   =======   =======   =======
  Hardware systems
   revenues              $ 1,165   $ 1,334   $ 1,299   $ 1,407   $ 5,205
                         =======   =======   =======   =======   =======

AS REPORTED GROWTH RATES
  Software and cloud
   revenues                    6%        5%        1%       (6%)       1%
  Hardware systems
   revenues                   (8%)       1%       (2%)      (4%)      (3%)

CONSTANT CURRENCY GROWTH
 RATES (2)
  Software and cloud
   revenues                    6%        8%        7%        2%        5%
  Hardware systems
   revenues                   (8%)       4%        5%        5%        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, 2014 and 2013 for the fiscal 2015 and fiscal
    2014 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 2015 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


SOURCE: Oracle Corporation




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