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Table of Contents
Forward-Looking Statements
In addition to historical information, this Annual Report on Form 10-K contains forward-looking statements that involve risks and uncertainties that could cause
our actual results to differ materially. Factors that might cause or contribute to such differences include, but are not limited to, those discussed in Item 1A. “Risk
Factors.” When used in this report, the words “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” and similar expressions are generally
intended to identify forward-looking statements. You should not place undue reliance on these forward-looking statements, which reflect our opinions only as of
the date of this Annual Report. We undertake no obligation to publicly release any revisions to the forward-looking statements after the date of this document.
You should carefully review the risk factors described in other documents we file from time to time with the Securities and Exchange Commission, including the
Quarterly Reports on Form 10-Q to be filed by us in our 2007 fiscal year, which runs from June 1, 2006 to May 31, 2007.
PART I
Item 1. Business
General
We are the world’s largest enterprise software company. We develop, manufacture, market, distribute and service database and middleware software as well as
applications software designed to help our customers manage and grow their business operations.
Our goal is to offer customers scalable, reliable, secure and integrated database, middleware and applications software that provides transactional efficiencies,
adapts to an organization’s unique needs and allows better ways to access and manage information at a low total cost of ownership. We seek to be an industry
leader in each of the specific product categories in which we compete and to expand into new and emerging markets. In fiscal 2006, we focused on strengthening
our market position and enhancing our existing portfolio of products and services as well as acquiring and integrating businesses that we believe will improve our
competitive position, expand our customer base, provide greater scale to increase our research and development and accelerate innovation.
An active acquisition program is an important element of our corporate strategy. In the last two years, we have paid an aggregate of $19.5 billion for our
acquisitions, including PeopleSoft, Inc. and Siebel Systems, Inc. Our planned legal-entity mergers, information system conversions and integration related to
these acquisitions are substantially complete. We expect to complete all other planned integration activities in the next three months. We expect to continue to
acquire companies, products, services and technologies.
Oracle Corporation was incorporated in 2005 as a Delaware corporation and is the successor to operations originally begun in June 1977. The corporate entity
structure was reorganized in January 2006 in connection with our acquisition of Siebel Systems. See Note 1 of Notes to Consolidated Financial Statements for
additional information related to the reorganization.
Software and Services
We are organized into two businesses, software and services, which are further divided into five operating segments. Our software business is comprised of two
operating segments: (1) new software licenses and (2) software license updates and product support. Our services business is comprised of three operating
segments: (1) consulting, (2) On Demand and (3) education. Our software business represented 80%, 80% and 79% of total revenues and our services business
represented 20%, 20% and 21% of total revenues in fiscal 2006, 2005 and 2004, respectively. See Note 15 of Notes to Consolidated Financial Statements for
additional information related to our operating segments.
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Source: ORACLE CORP, 10-K, July 21, 2006 Powered by Morningstar® Document Research℠