ORACLE CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
($ in thousands, except per share data)
(unaudited)
3rd Quarter Ended Nine Months Ended
February 28 February 28
1999 1998 1999 1998
REVENUES
Licenses and other 825,738 774,521 2,175,631 1,950,529
Services 1,253,181 974,236 3,708,343 2,780,784
Total Revenues 2,078,919 1,748,757 5,883,974 4,731,313
OPERATING EXPENSES
Sales and marketing
566,756 567,619 1,668,586 1,545,560
Cost of services 792,023 586,398 2,251,160 1,603,196
Research and
development (1) 209,798 184,106 598,099 526,990
General and administrative
103,663 92,361 299,546 249,258
Acquired in-process
research and
development (2) - - - 167,054
Total Operating
Expenses 1,672,240 1,430,484 4,817,391 4,092,058
OPERATING INCOME 406,679 318,273 1,066,583 639,255
Other income
(expense) (2)(3) 37,656 12,615 88,475 68,837
INCOME BEFORE TAXES
444,335 330,888 1,155,058 708,092
Provision for income taxes
151,074 115,811 392,720 297,220
NET INCOME (2) $ 293,261 $ 215,077 $ 762,338 $ 410,872
EARNINGS PER SHARE (2)(4)
Basic 0.20 0.15 0.53 0.28
Diluted 0.20 0.14 0.51 0.27
Shares Outstanding
Basic 1,440,352 1,462,421 1,448,484 1,468,361
Diluted 1,495,461 1,487,462 1,484,697 1,503,233
(1) In accordance with Statement of Financial Accounting Standards
No. 86, $9,261 and $12,526 were capitalized in the quarters ended
February 28, 1999 and 1998, respectively. Amortization of capitalized
software costs was $9,139 and $12,738 in the quarters ended
February 28, 1999 and 1998, respectively.
(2) Acquisition charges incurred in the first quarter of fiscal 1998
included in-process research and development charges of $91,500 and
$75,554, respectively, for the Treasury Services Corporation and Navio
Communications, Inc. merger transactions that closed in August, 1997.
Excluding the effect of these transactions, which also included a
credit of $25,726 for minority interest in other income (expense), the
provision for income taxes would have been 35% and net income and
diluted earnings per share for the nine months ended February 28, 1998
would have been $552,200 and $0.37 per share, respectively.
(3) Other income (expense) includes a gain on sale of existing shares in
Oracle Japan in the amount of $24,457.
(4) All earnings per share and shares outstanding amounts have been
adjusted to reflect a 3:2 stock split during February 1999.
ORACLE CORPORATION |
