Oracle 2012 Annual Report Download - page 62

New Software Licenses: New software license revenues substantially represent fees earned from granting
customers licenses to use our database and middleware and our application software, and also include fees earned
from cloud software subscription contracts. 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. Expenses associated with our new software license revenues are sales and marketing expenses,
which are largely personnel related and include commissions earned by our sales force for the sale of our
software products, marketing program costs, and amortization of intangible assets.
Year Ended May 31,
Percent Change Percent Change
(Dollars in millions) 2012 Actual Constant 2011 Actual Constant 2010
New Software License Revenues:
Americas .............................. $5,107 10% 11% $ 4,662 26% 24% $ 3,704
EMEA ................................ 2,884 1% 4% 2,861 16% 13% 2,463
Asia Pacific ........................... 1,915 12% 11% 1,712 25% 16% 1,366
Total revenues ..................... 9,906 7% 8% 9,235 23% 19% 7,533
Expenses:
Sales and marketing(1) ................... 5,899 8% 8% 5,455 17% 16% 4,654
Stock-based compensation ................ 120 43% 43% 84 5% 5% 79
Amortization of intangible assets(2) ......... 822 1% 1% 811 0% 0% 816
Total expenses ..................... 6,841 8% 8% 6,350 14% 13% 5,549
Total Margin .......................... $3,065 6% 10% $ 2,885 45% 37% $ 1,984
Total Margin % ....................... 31% 31% 26%
% Revenues by Geography:
Americas .............................. 52% 50% 49%
EMEA ................................ 29% 31% 33%
Asia Pacific ........................... 19% 19% 18%
Revenues by Product:
Database and middleware ................. $6,971 5% 6% $ 6,626 23% 19% $ 5,406
Applications ........................... 2,935 13% 14% 2,609 23% 20% 2,127
Total new software license revenues .... $ 9,906 7% 8% $ 9,235 23% 19% $ 7,533
% Revenues by Product:
Database and middleware ................. 70% 72% 72%
Applications ........................... 30% 28% 28%
(1) Excluding stock-based compensation
(2) Included as a component of ‘Amortization of Intangible Assets’ in our consolidated statements of operations
Fiscal 2012 Compared to Fiscal 2011: Excluding the effect of foreign currency rate fluctuations, total new
software license revenues increased by 8% in fiscal 2012 due to growth across all major regions and product
types and due to incremental revenues from our acquisitions. On a constant currency basis, the Americas
contributed 63%, EMEA contributed 13% and Asia Pacific contributed 24% to our new software license
revenues growth during fiscal 2012.
In constant currency, database and middleware revenues and applications revenues increased by 6% and 14%,
respectively, in fiscal 2012 primarily due to growth resulting from improved customer demand for our products,
our sales force’s execution and incremental revenues from our acquisitions. The growth rates of our new software
license revenues for fiscal 2012 were affected by the high growth rates that we experienced in fiscal 2011 against
which our fiscal 2012 revenues were compared. In reported currency, products from our recent acquisitions
contributed $63 million to the growth in our database and middleware revenues and $254 million to the growth in
our applications revenues during fiscal 2012.
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