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Oracle Reports GAAP EPS of $0.50; Non-GAAP EPS of $0.64; Without the Effect of U.S. Dollar Strengthening Both Would Have Been 4 Cents Higher

Cloud SaaS and PaaS Revenues Up 57% in U.S. Dollars and Up 61% in Constant Currency

March 15, 2016 4:00 PM EDT

REDWOOD SHORES, CA -- (Marketwired) -- 03/15/16 -- Oracle Corporation (NYSE: ORCL) today announced fiscal 2016 Q3 results. The strengthening of the U.S. dollar compared to foreign currencies had a significant impact on results in the quarter. Total Revenues were $9.0 billion, down 3% in U.S. dollars and up 1% in constant currency. Cloud plus On-Premise Software Revenues were $7.1 billion, down 1% in U.S. dollars and up 3% in constant currency. Cloud software as a service (SaaS) and platform as a service (PaaS) revenues were $583 million, up 57% in U.S. dollars and up 61% in constant currency. Cloud infrastructure as a service (IaaS) revenues were $152 million, down 2% in U.S. dollars and up 2% in constant currency. Total Cloud Revenues were $735 million, up 40% in U.S. dollars and up 44% in constant currency. Total On-Premise Software Revenues were $6.3 billion, down 4% in U.S. dollars and unchanged in constant currency. Total Hardware Revenues were $1.1 billion, down 13% in U.S. dollars and down 8% in constant currency. Total Services Revenues were $793 million, down 7% in U.S. dollars and down 2% in constant currency.

Operating Income was $3.0 billion and Operating Margin was 34%. Non-GAAP Operating Income was $3.8 billion and non-GAAP Operating Margin was 42%. Net Income was $2.1 billion while non-GAAP Net Income was $2.7 billion. Earnings Per Share was $0.50, while non-GAAP Earnings Per Share was $0.64. Without the impact of the U.S. dollar strengthening compared to foreign currencies, Oracle's reported GAAP and non-GAAP Earnings Per Share would have been 4 cents higher.

Short-term deferred revenues were $6.9 billion, up 7% in U.S. dollars and up 11% in constant currency compared with a year ago. Operating cash flow on a trailing twelve-month basis was $14.1 billion.

"Our Cloud SaaS and PaaS revenue growth rate accelerated to 61% in constant currency in Q3," said Oracle CEO, Safra Catz. "This dramatic revenue increase drove our non-GAAP SaaS and PaaS gross margins up to 51% in Q3 as compared with 43% in Q2. Our cloud business is now in a hyper-growth phase. Our gross margins are climbing toward our target of 80%. These two factors will ignite substantial EPS and cash flow growth over Oracle's next few quarters."

"Our SaaS and PaaS gross deferred revenue grew 96% in Q3 -- twice as fast as Workday and three times faster than Salesforce.com reported in their most recent quarters," said Oracle CEO, Mark Hurd. "Q3 SaaS and PaaS bookings were up 77% in constant currency. We added 942 new SaaS customers in the quarter, including several customers that switched from Workday HCM to Oracle Fusion HCM. We had more than 250 customers go live on Fusion SaaS HCM and Fusion ERP in Q3 alone. We now have over 11,000 SaaS customers with nearly 2,000 Fusion ERP customers -- ten times more ERP customers than Workday claims to have."

"In absolute dollar terms, Oracle is already selling more enterprise SaaS and PaaS new cloud revenue than any other company in the world -- including Salesforce.com," said Larry Ellison, Oracle Chairman and CTO. "We are growing much faster than Salesforce.com. We also have many more SaaS products than Salesforce.com. In some of our most important SaaS markets, such as ERP, HCM, Supply Chain and Manufacturing, Salesforce.com does not participate at all. By successfully competing in all of these markets, Oracle has the ability to sustain its high growth over a long period of time. That should make it easy for us to pass Salesforce.com and become the largest SaaS and PaaS cloud company in the world."

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 April 14, 2016, with a payment date of April 28, 2016.

Oracle also announced that its Board of Directors authorized the repurchase of up to an additional $10 billion of common stock under its existing share repurchase program in future quarters.

Q3 Fiscal 2016 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 Q3 results and Fiscal 2016 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: 67000932.

About Oracle

Oracle offers a comprehensive and fully integrated stack of cloud applications and platform services. For more information about Oracle (NYSE: ORCL), visit www.oracle.com or contact Investor Relations at [email protected] or (650) 506-4073.

Trademarks

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

"Safe Harbor" Statement: Statements in this press release relating to Oracle's future plans, expectations, beliefs, intentions and prospects, including statements regarding our expectations of future growth in our gross margins, EPS and cash flow; the timing of such growth; the growth of our cloud business generally; and the competitive landscape for enterprise cloud are all "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 Europe, parts of 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 contracts. (3) Our cloud computing strategy, including our Cloud SaaS, PaaS, IaaS and 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 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 subject to a successful cyber-attack, 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 U.S. Securities and Exchange Commission (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 March 15, 2016. Oracle undertakes no duty to update any statement in light of new information or future events.



                             ORACLE CORPORATION

                      Q3 FISCAL 2016 FINANCIAL RESULTS
               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                   ($ in millions, except per share data)

                          Three Months Ended
                  ----------------------------------                 %
                                                                  Increase
                                                                 (Decrease)
                                                           %         in
                                                       Increase   Constant
                  February   % of   February  % of    (Decrease)  Currency
                  29, 2016 Revenues 28, 2015 Revenues  in US $      (1)
                  -------- -------  -------- -------  ---------  ---------
REVENUES
  Cloud software
   as a service
   and platform as
   a service      $    583       6% $    372       4%        57%        61%
  Cloud
   infrastructure
   as a service        152       2%      155       2%        (2%)        2%
                  -------- -------  -------- -------
    Total cloud
     revenues          735       8%      527       6%        40%        44%
                  -------- -------  -------- -------
  New software
   licenses          1,680      18%    1,982      21%       (15%)      (11%)
  Software license
   updates and
   product support   4,669      52%    4,661      50%         0%         5%
                  -------- -------  -------- -------
    Total on-
     premise
     software
     revenues        6,349      70%    6,643      71%        (4%)        0%
                  -------- -------  -------- -------
      Total cloud
       and on-
       premise
       software
       revenues      7,084      78%    7,170      77%        (1%)        3%
                  -------- -------  -------- -------
  Hardware
   products            604       7%      712       8%       (15%)      (10%)
  Hardware support     531       6%      587       6%       (10%)       (5%)
                  -------- -------  -------- -------
      Total
       hardware
       revenues      1,135      13%    1,299      14%       (13%)       (8%)
                  -------- -------  -------- -------
      Total
       services
       revenues        793       9%      858       9%        (7%)       (2%)
                  -------- -------  -------- -------
        Total
         revenues    9,012     100%    9,327     100%        (3%)        1%
                  -------- -------  -------- -------

OPERATING EXPENSES
  Sales and
   marketing         1,903      21%    1,839      20%         3%         8%
  Cloud software
   as a service
   and platform as
   a service           292       3%      203       2%        44%        48%
  Cloud
   infrastructure
   as a service         88       1%       88       1%        (1%)        2%
  Software license
   updates and
   product support     293       3%      300       3%        (2%)        2%
  Hardware
   products            338       4%      367       4%        (8%)       (1%)
  Hardware support     171       2%      218       2%       (21%)      (17%)
  Services             657       7%      724       8%        (9%)       (4%)
  Research and
   development       1,419      16%    1,370      15%         4%         5%
  General and
   administrative      290       3%      252       3%        15%        20%
  Amortization of
   intangible
   assets              408       5%      527       6%       (23%)      (23%)
  Acquisition
   related and
   other                11       0%        8       0%        38%        42%
  Restructuring        115       1%       48       0%       141%       157%
                  -------- -------  -------- -------

        Total
         operating
         expenses    5,985      66%    5,944      64%         1%         4%
                  -------- -------  -------- -------

OPERATING INCOME     3,027      34%    3,383      36%       (11%)       (5%)
  Interest expense    (360)     (4%)    (273)     (2%)       32%        32%
  Non-operating
   income, net          65       0%       40       0%        62%        86%
                  -------- -------  -------- -------

INCOME BEFORE
 PROVISION FOR
 INCOME TAXES        2,732      30%    3,150      34%       (13%)       (7%)
                  -------- -------  -------- -------
  Provision for
   income taxes        590       6%      655       7%       (10%)       (3%)
                  -------- -------  -------- -------

NET INCOME        $  2,142      24% $  2,495      27%       (14%)       (8%)
                  ======== =======  ======== =======

EARNINGS PER
 SHARE:
  Basic           $   0.51          $   0.57
  Diluted         $   0.50          $   0.56

WEIGHTED AVERAGE
 COMMON SHARES
 OUTSTANDING:
  Basic              4,182             4,389
  Diluted            4,256             4,494

(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, 2015, 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 February 29, 2016
    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

                      Q3 FISCAL 2016 FINANCIAL RESULTS
      RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1)
                   ($ in millions, except per share data)

                                      Three Months Ended
                    ------------------------------------------------------
                     February         February   February         February
                        29,              29,       28,               28,
                       2016             2016      2015              2015
                       GAAP     Adj.  Non-GAAP    GAAP      Adj.  Non-GAAP
                    ---------  -----  --------  ---------  -----  --------

TOTAL REVENUES      $   9,012  $   2  $  9,014  $   9,327  $   7  $  9,334

TOTAL CLOUD AND ON-
 PREMISE SOFTWARE
 REVENUES           $   7,084  $   2  $  7,086  $   7,170  $   6  $  7,176
  Cloud software as
   a service and
   platform as a
   service                583      2       585        372      3       375
  Cloud
   infrastructure as
   a service              152      -       152        155      -       155
  New software
   licenses             1,680      -     1,680      1,982      -     1,982
  Software license
   updates and
   product support      4,669      -     4,669      4,661      3     4,664

TOTAL HARDWARE
 REVENUES           $   1,135  $   -  $  1,135  $   1,299  $   1  $  1,300
  Hardware products       604      -       604        712      -       712
  Hardware support        531      -       531        587      1       588

TOTAL OPERATING
 EXPENSES           $   5,985  $(794) $  5,191  $   5,944  $(816) $  5,128
  Cloud software as
   a service and
   platform as a
   service                292     (4)      288        203     (3)      200
  Stock-based
   compensation (3)       256   (256)        -        230   (230)        -
  Amortization of
   intangible assets
   (4)                    408   (408)        -        527   (527)        -
  Acquisition
   related and other       11    (11)        -          8     (8)        -
  Restructuring           115   (115)        -         48    (48)        -

CLOUD SOFTWARE AS A
 SERVICE AND
 PLATFORM AS A
 SERVICE MARGIN %          50%              51%        45%              47%

OPERATING INCOME    $   3,027  $ 796  $  3,823  $   3,383  $ 823  $  4,206

OPERATING MARGIN %         34%              42%        36%              45%

INCOME TAX EFFECTS
 (5)                $     590  $ 207  $    797  $     655  $ 247  $    902

NET INCOME          $   2,142  $ 589  $  2,731  $   2,495  $ 576  $  3,071

DILUTED EARNINGS PER
 SHARE              $    0.50         $   0.64  $    0.56         $   0.68

DILUTED WEIGHTED
 AVERAGE COMMON
 SHARES OUTSTANDING     4,256      -     4,256      4,494      -     4,494


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

TOTAL REVENUES              (3%)         (3%)          1%            1%

TOTAL CLOUD AND ON-
 PREMISE SOFTWARE
 REVENUES                   (1%)         (1%)          3%            3%
  Cloud software as
   a service and
   platform as a
   service                  57%          56%          61%           60%
  Cloud
   infrastructure as
   a service                (2%)         (2%)          2%            2%
  New software
   licenses                (15%)        (15%)        (11%)         (11%)
  Software license
   updates and
   product support           0%           0%           5%            5%

TOTAL HARDWARE
 REVENUES                  (13%)        (13%)         (8%)          (8%)
  Hardware products        (15%)        (15%)        (10%)         (10%)
  Hardware support         (10%)        (10%)         (5%)          (5%)

TOTAL OPERATING
 EXPENSES                    1%           1%           4%            5%
  Cloud software as
   a service and
   platform as a
   service                  44%          43%          48%           47%
  Stock-based
   compensation (3)         11%           *           11%            *
  Amortization of
   intangible assets
   (4)                     (23%)          *          (23%)           *
  Acquisition
   related and other        38%           *           42%            *
  Restructuring            141%           *          157%            *

CLOUD SOFTWARE AS A
 SERVICE AND
 PLATFORM AS A
 SERVICE MARGIN %      452 bp.      423 bp.      445 bp.       413 bp.

OPERATING INCOME           (11%)         (9%)         (5%)          (4%)

OPERATING MARGIN %   (269) bp.    (265) bp.    (206) bp.     (237) bp.

INCOME TAX EFFECTS
 (5)                       (10%)        (12%)         (3%)          (6%)

NET INCOME                 (14%)        (11%)         (8%)          (6%)

DILUTED EARNINGS PER
 SHARE                      (9%)         (6%)         (2%)           0%

DILUTED WEIGHTED
 AVERAGE COMMON
 SHARES OUTSTANDING         (5%)         (5%)         (5%)          (5%)

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

(2) We compare the percent change in the results from one period to another
    period using constant currency disclosure. We present constant currency
    information to provide a framework for assessing how our underlying
    businesses performed excluding the effect of foreign currency rate
    fluctuations. To present this information, current and comparative prior
    period results for entities reporting in currencies other than United
    States dollars are converted into United States dollars at the exchange
    rates in effect on May 31, 2015, which was the last day of our prior
    fiscal year, rather than the actual exchange rates in effect during the
    respective periods.

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

                           Three Months Ended         Three Months Ended
                            February 29, 2016          February 28, 2015
                       -------------------------- --------------------------
                         GAAP     Adj.   Non-GAAP   GAAP     Adj.   Non-GAAP
                       -------- -------  -------- -------- -------  --------
    Sales and
     marketing         $     57 $   (57) $      - $     45 $   (45) $      -
    Cloud
     infrastructure as
     a service                1      (1)        -        1      (1)        -
    Software license
     updates and
     product support          6      (6)        -        6      (6)        -
    Hardware products         1      (1)        -        1      (1)        -
    Hardware support          1      (1)        -        2      (2)        -
    Services                  7      (7)        -        8      (8)        -
    Research and
     development            154    (154)        -      138    (138)        -
    General and
     administrative          29     (29)        -       29     (29)        -
                       -------- -------  -------- -------- -------  --------
      Subtotal              256    (256)        -      230    (230)        -
                       -------- -------  -------- -------- -------  --------
    Cloud software as
     a service and
     platform as a
     service                  4      (4)        -        3      (3)        -
    Acquisition
     related and other        -       -         -        1      (1)        -
                       -------- -------  -------- -------- -------  --------
      Total stock-
       based
       compensation    $    260 $  (260) $      - $    234 $  (234) $      -
                       ======== =======  ======== ======== =======  ========

(4) Estimated future annual amortization expense related to intangible
     assets as of February 29, 2016 was as follows:

    Remainder of
     Fiscal 2016       $    353
    Fiscal 2017           1,016
    Fiscal 2018             867
    Fiscal 2019             760
    Fiscal 2020             615
    Fiscal 2021             470
    Thereafter            1,168
                       --------
      Total intangible
       assets, net     $  5,249
                       ========

(5) Income tax effects were calculated reflecting an effective GAAP tax rate
     of 21.6% and 20.8% in the third quarter of fiscal 2016 and 2015,
     respectively, and an effective non-GAAP tax rate of 22.6% and 22.7% in
     the third quarter of fiscal 2016 and 2015, respectively. The
     differences between our GAAP and non-GAAP tax rates in the third
     quarter of fiscal 2016 and 2015 were primarily due to the net tax
     effects of acquisition related items, including the tax effects of
     amortization of intangible assets.

*   Not meaningful



                             ORACLE CORPORATION

                Q3 FISCAL 2016 YEAR TO DATE FINANCIAL RESULTS
               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                   ($ in millions, except per share data)

                              Nine Months Ended
                    ------------------------------------              %
                                                                   Increase
                                                            %     (Decrease)
                                                         Increase     in
                                                        (Decrease) Constant
                    February   % of    February   % of      in     Currency
                    29, 2016 Revenues  28, 2015 Revenues    US $     (1)
                    -------- --------  -------- --------  -------  -------
REVENUES
  Cloud software as
   a service and
   platform as a
   service          $  1,517        6% $  1,069        4%      42%      46%
  Cloud
   infrastructure as
   a service             477        2%      448        2%       7%      12%
                    -------- --------  -------- --------
    Total cloud
     revenues          1,994        8%    1,517        6%      31%      36%
                    -------- --------  -------- --------
  New software
   licenses            4,509       17%    5,397       19%     (16%)    (11%)
  Software license
   updates and
   product support    14,048       53%   14,161       51%      (1%)      6%
                    -------- --------  -------- --------
    Total on-premise
     software
     revenues         18,557       70%   19,558       70%      (5%)      1%
                    -------- --------  -------- --------
      Total cloud
       and on-
       premise
       software
       revenues       20,551       78%   21,075       76%      (2%)      4%
                    -------- --------  -------- --------
  Hardware products    1,746        7%    2,007        7%     (13%)     (6%)
  Hardware support     1,639        6%    1,791        7%      (8%)     (2%)
                    -------- --------  -------- --------
      Total hardware
       revenues        3,385       13%    3,798       14%     (11%)     (4%)
                    -------- --------  -------- --------
      Total services
       revenues        2,517        9%    2,647       10%      (5%)      2%
                    -------- --------  -------- --------
        Total
         revenues     26,453      100%   27,520      100%      (4%)      2%
                    -------- --------  -------- --------

OPERATING EXPENSES
  Sales and
   marketing           5,578       21%    5,443       20%       2%       9%
  Cloud software as
   a service and
   platform as a
   service               847        3%      517        2%      64%      70%
  Cloud
   infrastructure as
   a service             268        1%      254        1%       5%      10%
  Software license
   updates and
   product support       877        3%      867        3%       1%       8%
  Hardware products      967        4%    1,034        4%      (6%)      1%
  Hardware support       526        2%      628        2%     (16%)    (11%)
  Services             2,058        8%    2,179        8%      (6%)      2%
  Research and
   development         4,253       16%    4,088       15%       4%       6%
  General and
   administrative        832        3%      799        3%       4%       9%
  Amortization of
   intangible assets   1,283        5%    1,642        6%     (22%)    (22%)
  Acquisition
   related and other      35        0%       12        0%     201%     226%
  Restructuring          293        1%      168        0%      74%     100%
                    -------- --------  -------- --------

        Total
         operating
         expenses     17,817       67%   17,631       64%       1%       6%
                    -------- --------  -------- --------

OPERATING INCOME       8,636       33%    9,889       36%     (13%)     (4%)
  Interest expense    (1,105)      (4%)    (817)      (3%)     35%      35%
  Non-operating
   income, net           179        0%       65        0%     174%     228%
                    -------- --------  -------- --------

INCOME BEFORE
 PROVISION FOR
 INCOME TAXES          7,710       29%    9,137       33%     (16%)     (6%)
                    -------- --------  -------- --------
  Provision for
   income taxes        1,623        6%    1,956        7%     (17%)     (8%)
                    -------- --------  -------- --------

NET INCOME          $  6,087       23% $  7,181       26%     (15%)     (6%)
                    ======== ========  ======== ========

EARNINGS PER SHARE:
  Basic             $   1.43           $   1.63
  Diluted           $   1.41           $   1.59

WEIGHTED AVERAGE
 COMMON SHARES
 OUTSTANDING:
  Basic                4,246              4,419
  Diluted              4,328              4,516

(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, 2015, 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 nine months ended February 29, 2016
    compared with the corresponding prior year period decreased our revenues
    by 6 percentage points, operating expenses by 5 percentage points and
    operating income by 9 percentage points.



                             ORACLE CORPORATION

                Q3 FISCAL 2016 YEAR TO DATE FINANCIAL RESULTS
      RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1)
                   ($ in millions, except per share data)

                                      Nine Months Ended
                  --------------------------------------------------------
                  February           February  February           February
                     29,                29,       28,                28,
                    2016               2016      2015               2015
                    GAAP      Adj.   Non-GAAP    GAAP      Adj.   Non-GAAP
                  --------  -------  --------  --------  -------  --------

TOTAL REVENUES    $ 26,453  $     8  $ 26,461  $ 27,520  $    21  $ 27,541

TOTAL CLOUD AND
 ON-PREMISE
 SOFTWARE
 REVENUES         $ 20,551  $     7  $ 20,558  $ 21,075  $    18  $ 21,093
  Cloud software
   as a service
   and platform
   as a service      1,517        6     1,523     1,069        9     1,078
  Cloud
   infrastructure
   as a service        477        -       477       448        -       448
  New software
   licenses          4,509        -     4,509     5,397        -     5,397
  Software
   license
   updates and
   product
   support          14,048        1    14,049    14,161        9    14,170

TOTAL HARDWARE
 REVENUES         $  3,385  $     1  $  3,386  $  3,798  $     3  $  3,801
  Hardware
   products          1,746        -     1,746     2,007        -     2,007
  Hardware
   support           1,639        1     1,640     1,791        3     1,794

TOTAL OPERATING
 EXPENSES         $ 17,817  $(2,376) $ 15,441  $ 17,631  $(2,506) $ 15,125
  Stock-based
   compensation
   (3)                 765     (765)        -       684     (684)        -
  Amortization of
   intangible
   assets (4)        1,283   (1,283)        -     1,642   (1,642)        -
  Acquisition
   related and
   other                35      (35)        -        12      (12)        -
  Restructuring        293     (293)        -       168     (168)        -

OPERATING INCOME  $  8,636  $ 2,384  $ 11,020  $  9,889  $ 2,527  $ 12,416

OPERATING MARGIN
 %                      33%                42%       36%                45%

INCOME TAX
 EFFECTS (5)      $  1,623  $   658  $  2,281  $  1,956  $   715  $  2,671

NET INCOME        $  6,087  $ 1,726  $  7,813  $  7,181  $ 1,812  $  8,993

DILUTED EARNINGS
 PER SHARE        $   1.41           $   1.81  $   1.59           $   1.99

DILUTED WEIGHTED
 AVERAGE COMMON
 SHARES
 OUTSTANDING         4,328        -     4,328     4,516        -     4,516


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

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

TOTAL CLOUD AND
 ON-PREMISE
 SOFTWARE
 REVENUES                 (2%)         (3%)          4%            4%
  Cloud software
   as a service
   and platform
   as a service           42%          41%          46%           46%
  Cloud
   infrastructure
   as a service            7%           7%          12%           12%
  New software
   licenses              (16%)        (16%)        (11%)         (11%)
  Software
   license
   updates and
   product
   support                (1%)         (1%)          6%            6%

TOTAL HARDWARE
 REVENUES                (11%)        (11%)         (4%)          (4%)
  Hardware
   products              (13%)        (13%)         (6%)          (6%)
  Hardware
   support                (8%)         (9%)         (2%)          (2%)

TOTAL OPERATING
 EXPENSES                  1%           2%           6%            8%
  Stock-based
   compensation
   (3)                    12%           *           12%            *
  Amortization of
   intangible
   assets (4)            (22%)          *          (22%)           *
  Acquisition
   related and
   other                 201%           *          226%            *
  Restructuring           74%           *          100%            *

OPERATING INCOME         (13%)        (11%)         (4%)          (4%)

OPERATING MARGIN
 %                 (329) bp.    (344) bp.    (228) bp.     (293) bp.

INCOME TAX
 EFFECTS (5)             (17%)        (15%)         (8%)          (7%)

NET INCOME               (15%)        (13%)         (6%)          (6%)

DILUTED EARNINGS
 PER SHARE               (12%)         (9%)         (2%)          (2%)

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

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

(2) We compare the percent change in the results from one period to another
    period using constant currency disclosure. We present constant currency
    information to provide a framework for assessing how our underlying
    businesses performed excluding the effect of foreign currency rate
    fluctuations. To present this information, current and comparative prior
    period results for entities reporting in currencies other than United
    States dollars are converted into United States dollars at the exchange
    rates in effect on May 31, 2015, which was the last day of our prior
    fiscal year, rather than the actual exchange rates in effect during the
    respective periods.

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

                            Nine Months Ended          Nine Months Ended
                            February 29, 2016          February 28, 2015
                       -------------------------- --------------------------
                         GAAP     Adj.   Non-GAAP   GAAP     Adj.   Non-GAAP
                       -------- -------  -------- -------- -------  --------
    Sales and
     marketing         $    163 $  (163) $      - $    131 $  (131) $      -
    Cloud software as
     a service and
     platform as a
     service                 13     (13)        -        8      (8)        -
    Cloud
     infrastructure as
     a service                3      (3)        -        3      (3)        -
    Software license
     updates and
     product support         18     (18)        -       15     (15)        -
    Hardware products         4      (4)        -        4      (4)        -
    Hardware support          4      (4)        -        4      (4)        -
    Services                 22     (22)        -       23     (23)        -
    Research and
     development            452    (452)        -      380    (380)        -
    General and
     administrative          86     (86)        -      116    (116)        -
                       -------- -------  -------- -------- -------  --------
      Subtotal              765    (765)        -      684    (684)        -
                       -------- -------  -------- -------- -------  --------
    Acquisition
     related and other        3      (3)        -        5      (5)        -
                       -------- -------  -------- -------- -------  --------
      Total stock-
       based
       compensation    $    768 $  (768) $      - $    689 $  (689) $      -
                       ======== =======  ======== ======== =======  ========

(4) Estimated future annual amortization expense related to intangible
    assets as of February 29, 2016 was as follows:

    Remainder of
     Fiscal 2016       $    353
    Fiscal 2017           1,016
    Fiscal 2018             867
    Fiscal 2019             760
    Fiscal 2020             615
    Fiscal 2021             470
    Thereafter            1,168
                       --------
      Total intangible
       assets, net     $  5,249
                       ========

(5) Income tax effects were calculated reflecting an effective GAAP tax rate
    of 21.0% and 21.4% in the first nine months of fiscal 2016 and 2015,
    respectively, and an effective non-GAAP tax rate of 22.6% and 22.9% in
    the first nine months of fiscal 2016 and 2015, respectively. The
    differences between our GAAP and non-GAAP tax rates in the first nine
    months of fiscal 2016 and 2015 were primarily due to the net tax effects
    of acquisition related items, including the tax effects of amortization
    of intangible assets.

*   Not meaningful



                             ORACLE CORPORATION

                      Q3 FISCAL 2016 FINANCIAL RESULTS
                    CONDENSED CONSOLIDATED BALANCE SHEETS
                               ($ in millions)

                                               February 29,       May 31,
                                                   2016            2015
                                              --------------  --------------
ASSETS
  Current Assets:
    Cash and cash equivalents                 $       15,583  $       21,716
    Marketable securities                             35,184          32,652
    Trade receivables, net                             3,844           5,618
    Inventories                                          212             314
    Prepaid expenses and other current assets          2,246           2,220
                                              --------------  --------------
      Total Current Assets                            57,069          62,520
  Non-Current Assets:
    Property, plant and equipment, net                 4,011           3,686
    Intangible assets, net                             5,249           6,406
    Goodwill, net                                     34,284          34,087
    Deferred tax assets                                1,382           1,458
    Other assets                                       2,899           2,746
                                              --------------  --------------
      Total Non-Current Assets                        47,825          48,383
                                              --------------  --------------
TOTAL ASSETS                                  $      104,894  $      110,903
                                              ==============  ==============
LIABILITIES AND EQUITY
  Current Liabilities:
    Notes payable, current                    $            -  $        1,999
    Accounts payable                                     410             806
    Accrued compensation and related benefits          1,536           1,839
    Deferred revenues                                  6,912           7,245
    Other current liabilities                          2,967           3,317
                                              --------------  --------------
      Total Current Liabilities                       11,825          15,206
  Non-Current Liabilities:
    Notes payable, non-current                        40,106          39,959
    Income taxes payable                               4,418           4,386
    Other non-current liabilities                      2,209           2,254
                                              --------------  --------------
      Total Non-Current Liabilities                   46,733          46,599
  Equity                                              46,336          49,098
                                              --------------  --------------
TOTAL LIABILITIES AND EQUITY                  $      104,894  $      110,903
                                              ==============  ==============



                             ORACLE CORPORATION

                      Q3 FISCAL 2016 FINANCIAL RESULTS
              CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                              ($ in millions)

                                                     Nine Months Ended
                                               ----------------------------
                                                February 29,   February 28,
                                                    2016           2015
                                               -------------  -------------
Cash Flows From Operating Activities:
  Net income                                   $       6,087  $       7,181
  Adjustments to reconcile net income to net
   cash provided by operating activities:
    Depreciation                                         643            502
    Amortization of intangible assets                  1,283          1,642
    Deferred income taxes                               (143)          (486)
    Stock-based compensation                             768            689
    Tax benefits on the exercise of stock
     options and vesting of restricted stock-
     based awards                                        188            284
    Excess tax benefits on the exercise of
     stock options and vesting of restricted
     stock-based awards                                  (61)          (167)
    Other, net                                           116            126
    Changes in operating assets and
     liabilities, net of effects from
     acquisitions:
      Decrease in trade receivables, net               1,746          1,867
      Decrease (increase) in inventories                  87            (78)
      Decrease in prepaid expenses and other
       assets                                             95            362
      Decrease in accounts payable and other
       liabilities                                      (890)        (1,204)
      Decrease in income taxes payable                  (112)          (369)
      Increase (decrease) in deferred revenues            24           (296)
                                               -------------  -------------

        Net cash provided by operating
         activities                                    9,831         10,053
                                               -------------  -------------

Cash Flows From Investing Activities:
  Purchases of marketable securities and other
   investments                                       (21,549)       (23,339)
  Proceeds from maturities and sales of
   marketable securities and other investments        18,845         15,042
  Acquisitions, net of cash acquired                    (313)        (6,232)
  Capital expenditures                                (1,009)          (794)
                                               -------------  -------------

        Net cash used for investing activities        (4,026)       (15,323)
                                               -------------  -------------

Cash Flows From Financing Activities:
  Payments for repurchases of common stock            (8,467)        (6,079)
  Proceeds from issuances of common stock                802          1,456
  Shares repurchased for tax withholdings upon
   vesting of restricted stock-based awards              (82)           (11)
  Payments of dividends to stockholders               (1,918)        (1,600)
  Proceeds from borrowings, net of issuance
   costs                                                   -          9,945
  Repayments of borrowings                            (2,000)        (1,500)
  Excess tax benefits on the exercise of stock
   options and vesting of restricted stock-
   based awards                                           61            167
  Distributions to noncontrolling interests              (85)          (196)
                                               -------------  -------------

        Net cash (used for) provided by
         financing activities                        (11,689)         2,182
                                               -------------  -------------

Effect of exchange rate changes on cash and
 cash equivalents                                       (249)          (980)
                                               -------------  -------------

Net decrease in cash and cash equivalents             (6,133)        (4,068)
                                               -------------  -------------

Cash and cash equivalents at beginning of
 period                                               21,716         17,769
                                               -------------  -------------

Cash and cash equivalents at end of period     $      15,583  $      13,701
                                               =============  =============



                             ORACLE CORPORATION
                      Q3 FISCAL 2016 FINANCIAL RESULTS
                  FREE CASH FLOW - TRAILING 4-QUARTERS (1)
                               ($ in millions)

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

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

Capital Expenditures                  (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%

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


                                                 Fiscal 2016
                                  -----------------------------------------
                                     Q1         Q2         Q3         Q4
                                  --------   --------   --------   --------

GAAP Operating Cash Flow          $ 13,464   $ 12,903   $ 14,114

Capital Expenditures                (1,636)    (1,606)    (1,606)
                                  --------   --------   --------   --------

Free Cash Flow                    $ 11,828   $ 11,297   $ 12,508
                                  ========   ========   ========   ========

% Growth over prior year               (20)%      (22)%       (8)%

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

GAAP Net Income                   $  9,501   $  9,198   $  8,844

Free Cash Flow as a % of Net
 Income                                124%       123%       141%

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

(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.



                             ORACLE CORPORATION
                      Q3 FISCAL 2016 FINANCIAL RESULTS
          SUPPLEMENTAL ANALYSIS OF GAAP REVENUES AND HEADCOUNT (1)
                               ($ in millions)

                                          Fiscal 2015
                     ----------------------------------------------------
                        Q1         Q2         Q3         Q4        TOTAL
                     --------   --------   --------   --------   --------
REVENUES
  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
                     --------   --------   --------   --------   --------
    Total cloud
     revenues             475        516        527        576      2,093
  New software
   licenses             1,370      2,045      1,982      3,138      8,535
  Software license
   updates and
   product support      4,731      4,768      4,661      4,686     18,847
                     --------   --------   --------   --------   --------
    Total on-premise
     software
     revenues           6,101      6,813      6,643      7,824     27,382
                     --------   --------   --------   --------   --------
      Total cloud and
       on-premise
       software
       revenues         6,576      7,329      7,170      8,400     29,475

  Hardware products       578        717        712        818      2,825
  Hardware support        587        617        587        589      2,380
                     --------   --------   --------   --------   --------
    Total hardware
     revenues           1,165      1,334      1,299      1,407      5,205

    Total 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
  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%
    Total cloud
     revenues              31%        45%        29%        28%        33%
  New software
   licenses                (2%)       (4%)       (7%)      (17%)       (9%)
  Software license
   updates and
   product support          7%         6%         2%         0%         4%
    Total on-premise
     software
     revenues               5%         3%        (1%)       (8%)       (1%)
      Total cloud and
       on-premise
       software
       revenues             6%         5%         1%        (6%)        1%

  Hardware products       (14%)        0%        (2%)       (6%)       (5%)
  Hardware support         (1%)        1%        (2%)       (1%)       (1%)
      Total hardware
       revenues            (8%)        1%        (2%)       (4%)       (3%)

      Total services
       revenues            (7%)       (3%)       (3%)       (4%)       (4%)

        Total
         revenues           3%         3%         0%        (5%)        0%

CONSTANT CURRENCY
 GROWTH RATES (2)
  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%
    Total cloud
     revenues              30%        47%        33%        34%        36%
  New software
   licenses                (2%)        0%         0%       (10%)       (4%)
  Software license
   updates and
   product support          6%         9%         8%         8%         8%
    Total on-premise
     software
     revenues               4%         6%         6%         0%         4%
      Total cloud and
       on-premise
       software
       revenues             6%         8%         7%         2%         5%

  Hardware products       (14%)        4%         6%         3%         0%
  Hardware support         (2%)        5%         4%         7%         4%
    Total hardware
     revenues              (8%)        4%         5%         5%         2%

    Total 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
                     ========   ========   ========   ========   ========

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


                                       Fiscal 2016
                     ----------------------------------------------
                        Q1         Q2         Q3       Q4    TOTAL
                     --------   --------   --------   ---- --------
REVENUES
  Cloud software as a
   service and
   platform as a
   service           $    451   $    484   $    583        $  1,517
  Cloud
   infrastructure as
   a service              160        165        152             477
                     --------   --------   --------   ---- --------
    Total cloud
     revenues             611        649        735           1,994
  New software
   licenses             1,151      1,677      1,680           4,509
  Software license
   updates and
   product support      4,696      4,683      4,669          14,048
                     --------   --------   --------   ---- --------
    Total on-premise
     software
     revenues           5,847      6,360      6,349          18,557
                     --------   --------   --------   ---- --------
      Total cloud and
       on-premise
       software
       revenues         6,458      7,009      7,084          20,551

  Hardware products       570        573        604           1,746
  Hardware support        558        550        531           1,639
                     --------   --------   --------   ---- --------
    Total hardware
     revenues           1,128      1,123      1,135           3,385

    Total services
     revenues             862        861        793           2,517

                     --------   --------   --------   ---- --------
      Total revenues $  8,448   $  8,993   $  9,012        $ 26,453
                     ========   ========   ========   ==== ========

AS REPORTED REVENUE
 GROWTH RATES
  Cloud software as a
   service and
   platform as a
   service                 34%        34%        57%             42%
  Cloud
   infrastructure as
   a service               16%         7%        (2%)             7%
    Total cloud
     revenues              29%        26%        40%             31%
  New software
   licenses               (16%)      (18%)      (15%)           (16%)
  Software license
   updates and
   product support         (1%)       (2%)        0%             (1%)
    Total on-premise
     software
     revenues              (4%)       (7%)       (4%)            (5%)
      Total cloud and
       on-premise
       software
       revenues            (2%)       (4%)       (1%)            (2%)

  Hardware products        (1%)      (20%)      (15%)           (13%)
  Hardware support         (5%)      (11%)      (10%)            (8%)
      Total hardware
       revenues            (3%)      (16%)      (13%)           (11%)

      Total services
       revenues             1%        (8%)       (7%)            (5%)

        Total
         revenues          (2%)       (6%)       (3%)            (4%)

CONSTANT CURRENCY
 GROWTH RATES (2)
  Cloud software as a
   service and
   platform as a
   service                 38%        39%        61%             46%
  Cloud
   infrastructure as
   a service               23%        11%         2%             12%
    Total cloud
     revenues              34%        31%        44%             36%
  New software
   licenses                (9%)      (12%)      (11%)           (11%)
  Software license
   updates and
   product support          8%         5%         5%              6%
    Total on-premise
     software
     revenues               4%         0%         0%              1%
      Total cloud and
       on-premise
       software
       revenues             6%         2%         3%              4%

  Hardware products         9%       (14%)      (10%)            (6%)
  Hardware support          4%        (5%)       (5%)            (2%)
    Total hardware
     revenues               6%       (10%)       (8%)            (4%)

    Total services
     revenues              10%         0%        (2%)             2%

      Total revenues        7%         0%         1%              2%

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

GEOGRAPHIC REVENUES

REVENUES
  Americas           $  4,716   $  4,960   $  4,942        $ 14,620
  Europe, Middle East
   & Africa             2,456      2,645      2,661           7,761
  Asia Pacific          1,276      1,388      1,409           4,072
                     --------   --------   --------   ---- --------
      Total revenues $  8,448   $  8,993   $  9,012        $ 26,453
                     ========   ========   ========   ==== ========

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

HEADCOUNT

GEOGRAPHIC AREA
  Americas             59,901     59,999     60,437
  Europe, Middle East
   & Africa            27,030     27,541     27,275
  Asia Pacific         48,139     48,620     48,694
                     --------   --------   --------   ---- --------
      Total company   135,070    136,160    136,406
                     ========   ========   ========   ==== ========

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

(1) The sum of the quarterly information presented may vary from the year-
    to-date information presented 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, 2015 and 2014 for the fiscal 2016 and fiscal
    2015 constant currency growth rate calculations presented, respectively,
    rather than the actual exchange rates in effect during the respective
    periods.



                             ORACLE CORPORATION
                      Q3 FISCAL 2016 FINANCIAL RESULTS
                SUPPLEMENTAL GEOGRAPHIC REVENUES ANALYSIS (1)
                               ($ in millions)

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

AMERICAS
  Total cloud and on-
   premise software
   revenues               $ 3,614   $ 4,044   $ 4,021   $ 4,926   $16,604
                          =======   =======   =======   =======   =======
  Total hardware revenues $   583   $   716   $   686   $   751   $ 2,737
                          =======   =======   =======   =======   =======

AS REPORTED GROWTH RATES
  Total cloud and on-
   premise software
   revenues                     5%        6%        5%        6%        6%
  Total hardware revenues      (9%)       3%        5%        1%        0%

CONSTANT CURRENCY GROWTH
 RATES (2)
  Total cloud and on-
   premise software
   revenues                     6%        8%        7%        9%        7%
  Total hardware revenues      (8%)       5%        7%        4%        2%

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

EUROPE / MIDDLE EAST /
 AFRICA
  Total cloud and on-
   premise software
   revenues               $ 1,992   $ 2,234   $ 2,169   $ 2,369   $ 8,764
                          =======   =======   =======   =======   =======
  Total hardware revenues $   338   $   380   $   379   $   423   $ 1,519
                          =======   =======   =======   =======   =======

AS REPORTED GROWTH RATES
  Total cloud and on-
   premise software
   revenues                    10%        4%       (3%)     (22%)      (5%)
  Total hardware revenues      (6%)       2%       (6%)      (4%)      (3%)

CONSTANT CURRENCY GROWTH
 RATES (2)
  Total cloud and on-
   premise software
   revenues                     7%        9%        9%       (8%)       3%
  Total hardware revenues      (7%)       8%        8%       15%        6%

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

ASIA PACIFIC
  Total cloud and on-
   premise software
   revenues               $   970   $ 1,051   $   980   $ 1,105   $ 4,107
                          =======   =======   =======   =======   =======
  Total hardware revenues $   244   $   238   $   234   $   233   $   949
                          =======   =======   =======   =======   =======

AS REPORTED GROWTH RATES
  Total cloud and on-
   premise software
   revenues                     3%        2%       (3%)     (10%)      (3%)
  Total hardware revenues      (8%)      (7%)     (12%)     (16%)     (11%)

CONSTANT CURRENCY GROWTH
 RATES (2)
  Total cloud and on-
   premise software
   revenues                     2%        7%        4%       (1%)       3%
  Total hardware revenues      (8%)      (3%)      (6%)      (8%)      (6%)

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

TOTAL COMPANY
  Total cloud and on-
   premise software
   revenues               $ 6,576   $ 7,329   $ 7,170   $ 8,400   $29,475
                          =======   =======   =======   =======   =======
  Total hardware revenues $ 1,165   $ 1,334   $ 1,299   $ 1,407   $ 5,205
                          =======   =======   =======   =======   =======

AS REPORTED GROWTH RATES
  Total cloud and on-
   premise software
   revenues                     6%        5%        1%       (6%)       1%
  Total hardware revenues      (8%)       1%       (2%)      (4%)      (3%)

CONSTANT CURRENCY GROWTH
 RATES (2)
  Total cloud and on-
   premise software
   revenues                     6%        8%        7%        2%        5%
  Total hardware revenues      (8%)       4%        5%        5%        2%

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


                          ------------------------------------------
                                          Fiscal 2016
                          ------------------------------------------
                             Q1        Q2        Q3      Q4   TOTAL
                          -------   -------   -------   ---- -------

AMERICAS
  Total cloud and on-
   premise software
   revenues               $ 3,684   $ 3,927   $ 3,964        $11,576
                          =======   =======   =======   ==== =======
  Total hardware revenues $   589   $   595   $   571        $ 1,755
                          =======   =======   =======   ==== =======

AS REPORTED GROWTH RATES
  Total cloud and on-
   premise software
   revenues                     2%       (3%)      (1%)           (1%)
  Total hardware revenues       1%      (17%)     (17%)          (12%)

CONSTANT CURRENCY GROWTH
 RATES (2)
  Total cloud and on-
   premise software
   revenues                     6%        0%        1%             2%
  Total hardware revenues       6%      (14%)     (13%)           (8%)

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

EUROPE / MIDDLE EAST /
 AFRICA
  Total cloud and on-
   premise software
   revenues               $ 1,873   $ 2,066   $ 2,069        $ 6,008
                          =======   =======   =======   ==== =======
  Total hardware revenues $   330   $   316   $   349        $   995
                          =======   =======   =======   ==== =======

AS REPORTED GROWTH RATES
  Total cloud and on-
   premise software
   revenues                    (6%)      (8%)      (5%)           (6%)
  Total hardware revenues      (2%)     (17%)      (8%)           (9%)

CONSTANT CURRENCY GROWTH
 RATES (2)
  Total cloud and on-
   premise software
   revenues                     7%        3%        2%             4%
  Total hardware revenues      14%       (6%)      (1%)            2%

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

ASIA PACIFIC
  Total cloud and on-
   premise software
   revenues               $   901   $ 1,016   $ 1,051        $ 2,967
                          =======   =======   =======   ==== =======
  Total hardware revenues $   209   $   212   $   215        $   635
                          =======   =======   =======   ==== =======

AS REPORTED GROWTH RATES
  Total cloud and on-
   premise software
   revenues                    (7%)      (3%)       7%            (1%)
  Total hardware revenues     (14%)     (11%)      (8%)          (11%)

CONSTANT CURRENCY GROWTH
 RATES (2)
  Total cloud and on-
   premise software
   revenues                     7%        6%       13%             9%
  Total hardware revenues      (3%)      (3%)      (3%)           (3%)

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

TOTAL COMPANY
  Total cloud and on-
   premise software
   revenues               $ 6,458   $ 7,009   $ 7,084        $20,551
                          =======   =======   =======   ==== =======
  Total hardware revenues $ 1,128   $ 1,123   $ 1,135        $ 3,385
                          =======   =======   =======   ==== =======

AS REPORTED GROWTH RATES
  Total cloud and on-
   premise software
   revenues                    (2%)      (4%)      (1%)           (2%)
  Total hardware revenues      (3%)     (16%)     (13%)          (11%)

CONSTANT CURRENCY GROWTH
 RATES (2)
  Total cloud and on-
   premise software
   revenues                     6%        2%        3%             4%
  Total hardware revenues       6%      (10%)      (8%)           (4%)

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

(1) The sum of the quarterly information presented may vary from the year-
    to-date information presented 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, 2015 and 2014 for the fiscal 2016 and fiscal
    2015 constant currency growth rate calculations presented, respectively,
    rather than the actual exchange rates in effect during the respective
    periods.



                                                                  APPENDIX A

                             ORACLE CORPORATION
                      Q3 FISCAL 2016 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 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 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 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 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 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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