Oracle 2009 Annual Report Download - page 61

Table of Contents
On a constant currency basis, total software license updates and product support expenses decreased due to reductions in our bad debt expenses from improved
collections during fiscal 2010 and were partially offset by an increase in salary and benefits expenses from increased headcount, including headcount assumed
from Sun.
Excluding the effect of currency rate fluctuations, total software license updates and product support margin and margin as a percentage of total revenues
increased as our total revenues grew while our total expenses declined.
Fiscal 2009 Compared to Fiscal 2008: The growth in our software license updates and product support revenues was unfavorably affected by foreign currency
rate fluctuations of 5 percentage points in fiscal 2009. Excluding the effect of currency rate fluctuations, software license updates and product support revenues
increased in fiscal 2009 for similar reasons as noted above. Excluding the effect of currency rate fluctuations, the Americas contributed 49%, EMEA contributed
38% and Asia Pacific contributed 13% to the increase in software license updates and product support revenues.
In reported currency, software license updates and product support revenues in fiscal 2009 included incremental revenues of $540 million from BEA and $69
million from other recently acquired companies. As described above, the amounts of software license updates and product support revenues that we recognized in
fiscal 2009 and fiscal 2008 were affected by business combination accounting rules.
Total software license updates and product support expenses were favorably impacted by 3 percentage points of currency variations during fiscal 2009.
Excluding the effect of currency rate fluctuations, software license updates and product support expenses increased due to higher salary expenses associated with
increased headcount to support the expansion of our customer base and higher amortization expenses resulting from additional intangible assets acquired since
the beginning of fiscal 2008, both of which were primarily attributable to our acquisition of BEA in the fourth quarter of fiscal 2008.
Total software license updates and product support margin increased due to an increase in revenues, while margin as a percentage of revenues decreased slightly
as the growth in our amortization of intangible assets exceeded our revenues growth rate.
Hardware Systems Business
As a result of our acquisition of Sun, we entered into a new hardware systems business in fiscal 2010. Our hardware systems business consists of two operating
segments: hardware systems products and hardware systems support.
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Source: ORACLE CORP, 10-K, July 01, 2010 Powered by Morningstar® Document Research℠