Oracle 2010 Annual Report Download - page 56

Table of Contents
Total Revenues and Operating Expenses
Year Ended May 31,
Percent Change Percent Change
(Dollars in millions) 2011 Actual Constant 2010 Actual Constant 2009
Total Revenues by Geography:
Americas $ 18,352 33% 32% $ 13,819 16% 15% $ 11,900
EMEA(1) 11,497 29% 28% 8,938 12% 13% 7,948
Asia Pacific(2) 5,773 42% 32% 4,063 19% 12% 3,404
Total revenues 35,622 33% 30% 26,820 15% 14% 23,252
Total Operating Expenses 23,589 33% 31% 17,758 19% 18% 14,931
Total Operating Margin $ 12,033 33% 29% $ 9,062 9% 6% $ 8,321
Total Operating Margin % 34% 34% 36%
% Revenues by Geography:
Americas 52% 52% 51%
EMEA 32% 33% 34%
Asia Pacific 16% 15% 15%
Total Revenues by Business:
Software $ 24,031 17% 15% $ 20,625 9% 8% $ 18,877
Hardware Systems 6,944 203% 195% 2,290 * * —
Services 4,647 19% 17% 3,905 -11% -12% 4,375
Total revenues $ 35,622 33% 30% $ 26,820 15% 14% $ 23,252
% Revenues by Business:
Software 68% 77% 81%
Hardware Systems 19% 9% 0%
Services 13% 14% 19%
(1) Comprised of Europe, the Middle East and Africa
(2) Asia Pacific includes Japan
* Not meaningful
Fiscal 2011 Compared to Fiscal 2010: Our total revenues increased in fiscal 2011 due to $4.7 billion of incremental revenue contribution from our hardware
systems business and significant increases in our software and services businesses’ revenues. Our total revenues growth across all of our businesses in fiscal 2011
was favorably affected by a full year of revenue contributions from Sun as compared to our fiscal 2010 operating results, for which Sun’s revenue contributions
were limited to only a portion of the fiscal 2010 period. In addition, our software business revenues increased as a result of the growth in our new software
license revenues and our software license updates and product support revenues. Excluding the effect of currency rate fluctuations, the Americas contributed
55%, EMEA contributed 29% and APAC contributed 16% to our total revenues growth.
Excluding the effect of foreign currency rate fluctuations, the increase in total operating expenses in fiscal 2011 was due to a full year of expense contributions
from Sun to our fiscal 2011 operating results, including increased expenses pertaining to hardware systems products sold and related hardware systems support
offerings, additional employee related expenses, and an increase in intangible asset amortization. These increases were partially offset by a reduction in
restructuring expenses relating to our Sun Restructuring Plan and certain other Oracle-based restructuring plans, and were also favorably affected by a $120
million benefit related to the recovery of legal costs, and certain other insurance recoveries in fiscal 2011.
On a constant currency basis, our operating margin increased during fiscal 2011 due to our total revenues growth. Our operating margin as a percentage of
revenues remained flat in fiscal 2011 as our revenues and expenses grew at approximately the same rates.
52
Source: ORACLE CORP, 10-K, June 28, 2011 Powered by Morningstar® Document Research℠