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Table of Contents
financial statements and related notes included elsewhere in this Annual Report. The sum of the quarterly financial
information may vary from the annual data due to rounding.
Fiscal 2008 Quarter Ended (Unaudited)
(in millions, except per share amounts) August 31 November 30 February 29 May 31
Revenues $ 4,529 $ 5,313 $ 5,349 $ 7,239
Gross profit $ 2,111 $ 2,690 $ 2,731 $ 4,028
Operating income $ 1,217 $ 1,782 $ 1,875 $ 2,971
Net income $ 840 $ 1,303 $ 1,340 $ 2,037
Earnings per share—basic $ 0.16 $ 0.25 $ 0.26 $ 0.40
Earnings per share—diluted $ 0.16 $ 0.25 $ 0.26 $ 0.39
Fiscal 2007 Quarter Ended (Unaudited)
(in millions, except per share amounts) August 31 November 30 February 28 May 31
Revenues $ 3,591 $ 4,163 $ 4,414 $ 5,828
Gross profit $ 1,666 $ 2,024 $ 2,197 $ 3,143
Operating income $ 943 $ 1,357 $ 1,394 $ 2,281
Net income $ 670 $ 967 $ 1,033 $ 1,604
Earnings per share—basic $ 0.13 $ 0.19 $ 0.20 $ 0.31
Earnings per share—diluted $ 0.13 $ 0.18 $ 0.20 $ 0.31
Stock Options
Our stock option program is a key component of the compensation package we provide to attract and retain certain of
our talented employees and align their interests with the interests of existing stockholders. We recognize that options
dilute existing stockholders and have sought to control the number of options granted while providing competitive
compensation packages. Consistent with these dual goals, our cumulative potential dilution since June 1, 2005 has
been a weighted average annualized rate of 1.5% per year. The potential dilution percentage is calculated as the
average annualized new options granted and assumed, net of options forfeited by employees leaving the company,
divided by the weighted average outstanding shares during the calculation period. This maximum potential dilution
will only result if all options are exercised. Some of these options, which have 10-year exercise periods, have
exercise prices substantially higher than the current market price of our common stock. At May 31, 2008, 11% of our
outstanding stock options had exercise prices in excess of the current market price. Consistent with our historical
practices, we do not expect that dilution from future grants before the effect of our stock repurchase program will
exceed 2.0% per year for our ongoing business. Over the last 10 years, our stock repurchase program has more than
offset the dilutive effect of our stock option program; however, we may reduce the level of our stock repurchases in
the future as we may use our available cash for acquisitions, to repay indebtedness or for other purposes. At May 31,
2008, the maximum potential dilution from all outstanding and unexercised option awards, regardless of when
granted and regardless of whether vested or unvested and including options where the strike price is higher than the
current market price, was 7.3%.
The Compensation Committee of the Board of Directors reviews and approves the organization-wide stock option
grants to selected employees, all stock option grants to executive officers and any individual stock option grants in
excess of 100,000 shares. A separate Plan Committee, which is an executive officer committee, approves individual
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Source: ORACLE CORP, 10-K, July 02, 2008 Powered by Morningstar® Document Research℠