Oracle 2008 Annual Report Download - page 65

Table of Contents
The following tables set forth selected unaudited quarterly information for our last eight fiscal quarters. We
believe that all necessary adjustments, which consisted only of normal recurring adjustments, have been
included in the amounts stated below to present fairly the results of such periods when read in conjunction
with the consolidated 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 2009 Quarter Ended (Unaudited)
(in millions, except per share amounts) August 31 November 30 February 28 May 31
Revenues $ 5,331 $ 5,607 $ 5,453 $ 6,861
Gross profit $ 3,805 $ 4,185 $ 4,119 $ 5,441
Operating income $ 1,521 $ 1,975 $ 1,940 $ 2,884
Net income $ 1,077 $ 1,296 $ 1,329 $ 1,891
Earnings per share—basic $ 0.21 $ 0.25 $ 0.27 $ 0.38
Earnings per share—diluted $ 0.21 $ 0.25 $ 0.26 $ 0.38
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 $ 3,193 $ 3,902 $ 3,931 $ 5,700
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
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, 2006 has been a weighted average annualized rate of 1.3% 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 generally have 10 year exercise periods, have exercise prices substantially
higher than the current market price of our common stock. At May 31, 2009, 45% 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. In recent 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 pay dividends, to repay or repurchase
indebtedness or for other purposes. At May 31, 2009, 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 7.2%.
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Source: ORACLE CORP, 10-K, June 29, 2009 Powered by Morningstar® Document Research℠