Oracle 2009 Annual Report Download - page 62

Table of Contents
Hardware Systems Products: Hardware systems products revenues are primarily generated from the sales of our computer server and storage products. We
market and sell our hardware systems products through our direct sales force and indirect channels such as independent distributors and value added resellers.
Operating expenses associated with our hardware systems products include the cost of hardware systems products, which consist of expenses for materials and
labor used to produce these products by our internal manufacturing operations or by third party manufacturers, warranty expenses and the impact of periodic
changes in inventory valuation, including the impact of inventory determined to be excess and obsolete. Operating expenses associated with our hardware
systems products also include sales and marketing expenses, which are largely personnel related and include variable compensation earned by our sales force for
the sales of our hardware products, and amortization of intangible assets.
Year Ended May 31,
Percent Change
(Dollars in millions) 2010 Actual Constant 2009
Hardware Systems Products Revenues:
Americas $ 747 * * $ —
EMEA 485 * * —
Asia Pacific 274 * * —
Total revenues 1,506 * * —
Expenses:
Hardware systems products(1) 877 * * —
Sales and marketing(1) 342 * * —
Stock-based compensation 5 * * —
Amortization of intangible assets(2) 162 * * —
Total expenses 1,386 * * —
Total Margin $ 120 * * $ —
Total Margin % 8% *
% Revenues by Geography:
Americas 50% *
EMEA 32% *
Asia Pacific 18% *
(1) Excluding stock-based compensation
(2) Included as a component of ‘Amortization of Intangible Assets’ in our consolidated statements of operations
*Not meaningful
Hardware systems products revenues and expenses for fiscal 2010 resulted from our acquisition of Sun. Our hardware systems products expenses were
unfavorably affected by $29 million of fair value adjustments made pursuant to ASC 805, Business Combinations, for inventories we assumed from Sun and sold
to customers in the post-combination period.
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Source: ORACLE CORP, 10-K, July 01, 2010 Powered by Morningstar® Document Research℠