Oracle 2008 Annual Report Download - page 49

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Table of Contents
Software
Software includes new software licenses and software license updates and product support.
New Software Licenses: New software license revenues represent fees earned from granting customers
licenses to use our database and middleware as well as our application software products. We continue to
place significant emphasis, both domestically and internationally, on direct sales through our own sales force.
We also continue to market our products through indirect channels. Sales and marketing expenses are largely
personnel related and include commissions earned by our sales force for the sale of our software products, and
also include marketing program costs and amortization of intangible assets.
Year Ended May 31,
Percent Change Percent Change
(Dollars in millions) 2009 Actual Constant 2008 Actual Constant 2007
New Software License
Revenues:
Americas $ 3,216 -7% -4% $ 3,467 26% 24% $ 2,751
EMEA 2,589 -6% 6% 2,766 35% 24% 2,043
Asia Pacific 1,318 3% 7% 1,282 18% 11% 1,088
Total revenues 7,123 -5% 1% 7,515 28% 21% 5,882
Expenses:
Sales and marketing(1) 4,571 -1% 4% 4,628 20% 14% 3,869
Stock-based compensation 67 31% 31% 51 32% 32% 38
Amortization of intangible
assets(2) 819 46% 46% 560 58% 58% 354
Total expenses 5,457 4% 9% 5,239 23% 18% 4,261
Total Margin $ 1,666 -27% -16% $ 2,276 40% 31% $ 1,621
Total Margin % 23% 30% 28%
% Revenues by Geography:
Americas 45% 46% 47%
EMEA 36% 37% 35%
Asia Pacific 19% 17% 18%
Revenues by Product:
Database and middleware $ 5,066 0% 7% $ 5,090 24% 17% $ 4,119
Applications 2,000 -16% -10% 2,369 38% 33% 1,716
Total revenues by product 7,066 -5% 1% 7,459 28% 21% 5,835
Other revenues 57 2% 5% 56 19% 15% 47
Total new software license
revenues $ 7,123 -5% 1% $ 7,515 28% 21% $ 5,882
% Revenues by Product:
Database and middleware 72% 68% 71%
Applications 28% 32% 29%
(1) Excluding stock-based compensation
(2) Included as a component of ‘Amortization of Intangible Assets’ in our consolidated statements of operations
Fiscal 2009 Compared to Fiscal 2008: New software license revenues growth was unfavorably affected by
foreign currency rate fluctuations of 6 percentage points in fiscal 2009. Excluding the effect of currency rate
fluctuations, total new software license revenues increased slightly in fiscal 2009 as a result of a 7% increase
in database and middleware revenues, partially offset by a 10% decrease in applications revenues. Excluding
the effect of currency rate fluctuations, the EMEA and Asia Pacific regions increased new software license
revenues by 6% and 7%, respectively, and were partially offset by a decrease of 4% in the Americas region.
Excluding the effect of currency rate fluctuations of 7 percentage points, database and middleware revenues
grew 7% in fiscal 2009 due primarily to BEA products and, to a lesser extent, other recently acquired
products. In
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Source: ORACLE CORP, 10-K, June 29, 2009 Powered by Morningstar® Document Research℠