Oracle 2010 Annual Report Download - page 60

Table of Contents
In reported currency, new software license revenues earned from transactions over $0.5 million increased by 36% in fiscal 2011 and represented 54% of our new
software license revenues in fiscal 2011 in comparison to 49% in fiscal 2010.
Excluding the effect of unfavorable foreign currency rate fluctuations, total software sales and marketing expenses increased in fiscal 2011 primarily due to
higher employee related and other operating expenses resulting from a full year of expense contributions from Sun to our fiscal 2011 operating results and higher
variable compensation expenses resulting from higher revenues.
Excluding the effect of favorable foreign currency rate fluctuations, new software license margin and margin as a percentage of revenues increased as our
revenues increased at a faster rate than our expenses.
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, and other recent acquisitions contributed $99 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.
In reported currency, new software license revenues earned from transactions over $0.5 million increased by 2% in fiscal 2010 and represented 49% of our new
software license revenues in fiscal 2010 in comparison to 50% in fiscal 2009.
Excluding the effect of unfavorable foreign currency rate fluctuations, total new software license expenses increased in fiscal 2010 primarily due to higher
variable compensation expenses and related payroll taxes resulting from higher revenues and due to additional operating expenses as a result of the Sun
acquisition. These increases were partially offset by lower travel and entertainment expenses and marketing communication expenses as a result of cost
management initiatives.
Excluding the effect of favorable foreign currency rate fluctuations of 4 percentage points, new software license margin and margin as a percentage of revenues
increased as our revenues increased at a faster rate than our expenses.
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Source: ORACLE CORP, 10-K, June 28, 2011 Powered by Morningstar® Document Research℠