Oracle 2008 Annual Report Download - page 50

Table of Contents
reported currency, BEA products contributed $459 million, and other recently acquired products contributed
$21 million to the total database and middleware revenues growth in fiscal 2009. The revenue contributions
from BEA products, which already have been integrated with Oracle’s Fusion Middleware and are sold
together, are based on our internal allocations consistent with previous periods.
Excluding the effect of currency rate fluctuations of 6 percentage points, application new software license
revenues decreased in fiscal 2009 due to weaker global economic conditions and were partially offset by
incremental revenues from our recent acquisitions. In reported currency, Primavera products contributed
$33 million and our other recently acquired products contributed an incremental $27 million to our
applications revenues in fiscal 2009.
In reported currency, new software license revenues earned from transactions over $0.5 million declined by
7% in fiscal 2009, primarily due to unfavorable currency variations, and decreased to 50% of new software
license revenues in fiscal 2009 from 51% in fiscal 2008.
Total sales and marketing expenses were favorably impacted by 5 percentage points of currency variations
during fiscal 2009. Excluding the effect of currency rate fluctuations, sales and marketing expenses increased
in fiscal 2009 primarily due to higher salaries from increased headcount and higher amortization of intangible
assets. These constant currency increases were partially offset by a reduction in our commissions and bonus
expenses.
In both reported and constant currency, total new software license margin and margin as a percentage of
revenues decreased as our total new software license expenses growth, in particular higher amortization of
intangible assets, exceeded our revenues growth.
Fiscal 2008 Compared to Fiscal 2007: New software license revenues growth was positively affected by
foreign currency rate fluctuations of 7 percentage points in fiscal 2008. Excluding the effect of currency rate
fluctuations, new software license revenues grew in all major product lines and across all geographies, with
database and middleware revenues contributing 55% to the increase in new software license revenues and
applications revenues contributing 45%. Excluding the effect of currency rate fluctuations, the Americas
contributed 52%, EMEA contributed 39% and Asia Pacific contributed 9% to the increase in new software
license revenues.
Excluding the effect of currency rate fluctuations, database and middleware revenues grew 17% in fiscal 2008
as a result of increased demand for our database and middleware products as well as incremental revenues
from acquired companies. Hyperion products contributed $103 million, BEA products contributed
$93 million, Stellent products contributed $37 million, Tangosol products contributed $18 million and other
recently acquired products contributed $2 million to the total database and middleware revenues growth in
fiscal 2008.
On a constant currency basis, applications revenues increased 33% in fiscal 2008. Hyperion products
contributed $199 million, Agile products contributed $58 million, Metasolv products contributed $14 million,
and other recently acquired products contributed $42 million to the total applications revenues growth in
fiscal 2008.
In reported currency, new software license revenues earned from transactions over $0.5 million grew by 42%
in fiscal 2008 and increased from 46% of new software license revenues in fiscal 2007 to 51% in fiscal 2008.
Sales and marketing expenses were adversely impacted by 5 percentage points of unfavorable currency
variations during fiscal 2008. Excluding the effect of currency rate fluctuations, sales and marketing expenses
increased in fiscal 2008 primarily due to higher salaries, benefits and travel expenses resulting from increased
headcount, higher commissions expenses associated with both increased revenues and headcount levels, and
an increase in planned marketing program expenses. These increases were partially offset by a $42 million
reduction in litigation related expenses resulting primarily from the settlement of certain legal matters during
the third quarter of fiscal 2008.
Total new software license margin and margin as a percentage of revenues increased due to our new software
licenses revenues growth rate and a favorable foreign currency impact, partially offset by higher growth rates
in our amortization of intangible assets and stock-based compensation expenses.
Software License Updates and Product Support: Software license updates grant customers rights to
unspecified software product upgrades and maintenance releases issued during the support period. Product
support includes internet access to technical content as well as internet and telephone access to technical
support personnel in our global support centers. Expenses associated with our software license updates and
product support line of business include
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Source: ORACLE CORP, 10-K, June 29, 2009 Powered by Morningstar® Document Research℠