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Table of Contents
Forward-Looking Statements
For purposes of this Annual Report, the terms “Oracle,” “we,” “us” and “our” refer to Oracle Corporation and
its consolidated subsidiaries. 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 2008 fiscal year, which
runs from June 1, 2007 to May 31, 2008.
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. We also provide support for the Linux open source operating
system through our Oracle Unbreakable Linux Support program, which provides our customers with our
industry-leading global support programs for Linux.
Our goal is to offer customers scalable, reliable, secure and integrated software systems that provide
transactional efficiencies, adapt to an organization’s unique needs and allow better ways to access and
manage information at a lower 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
2007, we focused on strengthening our competitive position and enhancing our existing portfolio of products
and services as well as acquiring and integrating businesses.
An active acquisition program is an important element of our corporate strategy. In the last three fiscal years,
we have invested over $25 billion, in the aggregate, to acquire a number of companies, products, services and
technologies, including the acquisition of PeopleSoft, Inc., Siebel Systems, Inc. and Hyperion Solutions
Corporation. Typically, the significant majority of our integration activities related to an acquisition are
substantially complete in the United States within three to six months after the closing of the acquisition. We
believe our acquisition program supports our long-term strategic direction, strengthens our competitive
position, expands our customer base and provides greater scale to accelerate innovation, grow our earnings
and increase stockholder value. 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.
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 and services businesses represented
79% and 21% of our total revenues, respectively, in fiscal 2007 and 80% and 20% of our total revenues,
respectively, in both fiscal 2006 and fiscal 2005. 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, June 29, 2007 Powered by Morningstar® Document Research℠