Oracle 2012 Annual Report Download - page 78

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We cannot make a reasonably reliable estimate of the period in which the remainder of our unrecognized tax
benefits will be settled or released with the relevant tax authorities, although we believe it is reasonably possible
that certain of these liabilities could be settled or released during fiscal 2013.
As described in Note 2 of Notes to Consolidated Financial Statements included elsewhere in this Annual Report, we have
contingent consideration payable as a result of our acquisition of Pillar Data Systems, Inc. that will settle in fiscal 2015.
Subsequent to fiscal 2012, we agreed to acquire certain companies for amounts that are not material to our
business. We expect to close such acquisitions within the next twelve months.
We believe that our current cash, cash equivalents and marketable securities and cash generated from operations
will be sufficient to meet our working capital, capital expenditures and contractual obligation requirements. In
addition, we believe we could fund any future acquisitions, dividend payments and repurchases of common stock
or debt with our internally available cash, cash equivalents and marketable securities, cash generated from
operations, additional borrowings or from the issuance of additional securities.
Off-Balance Sheet Arrangements: We do not have any off-balance sheet arrangements that have or are reasonably
likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses,
results of operations, liquidity, capital expenditures or capital resources that are material to investors.
Selected Quarterly Financial Data
Quarterly revenues, expenses and operating income have historically been affected by a variety of seasonal
factors, including sales force incentive compensation plans. In addition, our European operations generally
provide lower revenues in our first fiscal quarter because of the reduced economic activity in Europe during the
summer. These seasonal factors are common in the high technology industry. These factors have caused a
decrease in our first quarter revenues as compared to revenues in the immediately preceding fourth quarter,
which historically has been our highest revenue quarter within a particular fiscal year. Similarly, the operating
income of our business is affected by seasonal factors in a consistent manner as our revenues (in particular, our
new software licenses segment) as certain expenses within our cost structure are relatively fixed in the short-
term. We expect these trends to continue in fiscal 2013.
The following tables set forth selected unaudited quarterly information for our last eight fiscal quarters. We
believe that all necessary adjustments, which consisted only of normal recurring adjustments, have been included
in the amounts stated below to present fairly the results of such periods when read in conjunction with the
consolidated financial statements and related notes included elsewhere in this Annual Report. The sum of the
quarterly financial information may vary from the annual data due to rounding.
Fiscal 2012 Quarter Ended (Unaudited)
(in millions, except per share amounts) August 31 November 30 February 29 May 31
Revenues ........................................... $ 8,374 $ 8,792 $ 9,039 $ 10,916
Gross profit ......................................... $ 6,339 $ 6,792 $ 7,088 $ 8,853
Operating income .................................... $ 2,683 $ 3,111 $ 3,317 $ 4,596
Net income ......................................... $ 1,840 $ 2,192 $ 2,498 $ 3,451
Earnings per share—basic .............................. $ 0.36 $ 0.43 $ 0.50 $ 0.70
Earnings per share—diluted ............................ $ 0.36 $ 0.43 $ 0.49 $ 0.69
Fiscal 2011 Quarter Ended (Unaudited)
(in millions, except per share amounts) August 31 November 30 February 28 May 31
Revenues ........................................... $ 7,502 $ 8,582 $ 8,764 $ 10,775
Gross profit ......................................... $ 5,401 $ 6,384 $ 6,707 $ 8,544
Operating income .................................... $ 1,917 $ 2,770 $ 2,987 $ 4,359
Net income ......................................... $ 1,352 $ 1,870 $ 2,116 $ 3,209
Earnings per share—basic .............................. $ 0.27 $ 0.37 $ 0.42 $ 0.63
Earnings per share—diluted ............................ $ 0.27 $ 0.37 $ 0.41 $ 0.62
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