Oracle 2009 Annual Report Download - page 58

Table of Contents
Software Business
Our software business consists of our new software licenses segment and software license updates and product support segment.
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,
2010
Percent Change
2009
Percent Change
2008
(Dollars in millions) Actual Constant Actual Constant
New Software License Revenues:
Americas $ 3,704 15% 14% $ 3,216 -7% -4% $ 3,467
EMEA 2,463 -5% -4% 2,589 -6% 6% 2,766
Asia Pacific 1,366 4% -3% 1,318 3% 7% 1,282
Total revenues 7,533 6% 4% 7,123 -5% 1% 7,515
Expenses:
Sales and marketing(1) 4,654 2% 1% 4,571 -1% 4% 4,628
Stock-based compensation 79 17% 17% 67 31% 31% 51
Amortization of intangible assets(2) 816 0% 0% 819 46% 46% 560
Total expenses 5,549 2% 1% 5,457 4% 9% 5,239
Total Margin $ 1,984 19% 15% $ 1,666 -27% -16% $ 2,276
Total Margin % 26% 23% 30%
% Revenues by Geography:
Americas 49% 45% 46%
EMEA 33% 36% 37%
Asia Pacific 18% 19% 17%
Revenues by Product:
Database and middleware $ 5,406 6% 4% $ 5,123 0% 7% $ 5,146
Applications 2,127 6% 5% 2,000 -16% -10% 2,369
Total new software license revenues $ 7,533 6% 4% $ 7,123 -5% 1% $ 7,515
% Revenues by Product:
Database and middleware 72% 72% 68%
Applications 28% 28% 32%
(1) Excluding stock-based compensation
(2) Included as a component of ‘Amortization of Intangible Assets’ in our consolidated statements of operations
Fiscal 2010 Compared to Fiscal 2009: Excluding the effect of favorable foreign currency rate fluctuations of 2 percentage points, total new software license
revenues increased by 4% in fiscal 2010 due to growth in the Americas region and incremental revenues from our acquisitions.
In constant currency, database and middleware revenues and applications revenues increased by 4% and 5% in fiscal 2010, respectively, primarily due to growth
in the second half of fiscal 2010 resulting from improved customer demand, our sales force’s execution and incremental revenues from our acquisitions. In
reported currency, our acquisition of Sun contributed $188 million, GoldenGate contributed $78 million and other recent acquisitions contributed $21 million to
the growth in our database and middleware revenues during fiscal 2010. Our recent acquisitions contributed $39 million to our fiscal 2010 applications revenues
growth.
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Source: ORACLE CORP, 10-K, July 01, 2010 Powered by Morningstar® Document Research℠