Q1 FY19 GAAP EPS UP 13% TO $0.57 and NON-GAAP EPS UP 18% TO $0.71

 

 

REDWOOD SHORES, Calif., Sept. 17, 2018 /PRNewswire/ -- Oracle Corporation (NYSE:ORCL) today announced fiscal 2019 Q1 results. Total Revenues were $9.2 billion, up 1% in U.S. dollars and up 2% in constant currency, compared to Q1 last year. Total Cloud Services and License Support plus Cloud License and On-Premise License revenues were up 2% to $7.5 billion. Cloud Services and License Support revenues were $6.6 billion, while Cloud License and On-Premise License revenues were $867 million. Without the strengthening of the U.S. dollar compared to foreign currencies, Oracle's reported GAAP and non-GAAP Total Revenues would have been $66 million higher, and Earnings Per Share would have been 1 cent higher.

GAAP Operating Income was up 1% to $2.8 billion and GAAP Operating Margin was 30%. Non-GAAP Operating Income was up 1% to $3.8 billion and non-GAAP Operating Margin was 41%. GAAP Net Income was up 6% to $2.3 billion and non-GAAP Net Income was up 10% to $2.8 billion. GAAP Earnings Per Share was up 13% to $0.57 while non-GAAP Earnings Per Share was up 18% to $0.71.

Short-term deferred revenues were up 2% to $10.3 billion compared to a year ago. Operating Cash Flow was up 5% to $15.5 billion during the trailing twelve months.

"We are off to an excellent start with Q1 non-GAAP earnings per share growing 19% in constant currency," said Oracle CEO, Safra Catz. "That strong earnings per share growth rate increases my confidence that we will deliver on another fiscal year of double-digit non-GAAP earnings per share growth."

"The vast majority of ERP applications running in the cloud are either Oracle Fusion or Oracle NetSuite systems," said Oracle CEO, Mark Hurd. "In the first quarter, we increased our market share as customers continued to buy Oracle Fusion ERP to replace their existing SAP and Workday ERP systems. The Oracle Fusion ERP customer count is now nearly 5,500, while the NetSuite ERP customer count is over 15,000. Virtually every analyst ranks Oracle as the market leader in cloud ERP."

"The Oracle Autonomous Database is now available on our second generation, highly-secure "Bare-Metal" cloud infrastructure," said Oracle CTO, Larry Ellison. "Oracle's Autonomous Database is faster, easier-to-use, more reliable, more secure and much lower cost than Amazon's databases. And Oracle is the only database that can automatically patch itself while running to protect your data from data theft. These are just some of the reasons why Amazon uses the Oracle database to run its business."

The Board of Directors increased the authorization for share repurchases by $12.0 billion. The Board of Directors also declared a quarterly cash dividend of $0.19 per share of outstanding common stock. This dividend will be paid to stockholders of record as of the close of business on October 16, 2018, with a payment date of October 30, 2018.

Q1 Fiscal 2019 Earnings Conference Call and Webcast

Oracle will hold a conference call and webcast today to discuss these results at 2:00 p.m. Pacific. You may listen to the call by dialing (816) 287-5563, Passcode: 425392. To access the live webcast, please visit the Oracle Investor Relations website at http://www.oracle.com/investor. In addition, Oracle's Q1 results and fiscal 2019 financial tables are available on the Oracle Investor Relations website.

A replay of the conference call will also be available by dialing (855) 859-2056 or (404) 537-3406, Passcode: 6387377.

About Oracle

Oracle offers a comprehensive and fully integrated stack of cloud applications and platform services. For more information about Oracle (NYSE:ORCL), visit www.oracle.com/investor or contact Investor Relations at investor_us@oracle.com or (650) 506-4073.  

Trademarks

Oracle and Java are registered trademarks of Oracle and/or its affiliates. Other names may be trademarks of their respective owners.

"Safe Harbor" Statement: Statements in this press release relating to Oracle's future plans, expectations, beliefs, intentions and prospects, including statements regarding the growth of our non-GAAP EPS are all "forward-looking statements" and are subject to material risks and uncertainties. Many factors could affect our current expectations and our actual results, and could cause actual results to differ materially. We presently consider the following to be among the important factors that could cause actual results to differ materially from expectations: (1) Our cloud strategy, including our Oracle Software as a Service, Platform as a Service, Infrastructure as a Service and Data as a Service offerings, may not be successful. (2) If we are unable to develop new or sufficiently differentiated products and services, integrate acquired products and services, or enhance and improve our existing products and support services in a timely manner, or price our products and services to meet market demand, customers may not purchase or subscribe to our software, hardware or cloud offerings or renew software support, hardware support or cloud subscriptions contracts. (3) Enterprise customers rely on our cloud, license and hardware offerings and related services to run their businesses and significant coding, manufacturing or configuration errors in our cloud, license and hardware offerings and related services could expose us to product liability, performance and warranty claims, as well as cause significant harm to our brand and reputation, which could impact our future sales. (4) If the security measures for our products and services are compromised and as a result, our customers' data or our IT systems are accessed improperly, made unavailable, or improperly modified, our products and services may be perceived as vulnerable, our brand and reputation could be damaged and we may experience legal claims and reduced sales. (5) Our business practices with respect to data could give rise to operational interruption, liabilities or reputational harm as a result of governmental regulation, legal requirements or industry standards relating to consumer privacy and data protection. (6) Economic, political and market conditions can adversely affect our business, results of operations and financial condition, including our revenue growth and profitability, which in turn could adversely affect our stock price. (7) Our international sales and operations subject us to additional risks that can adversely affect our operating results. (8) We have a selective and active acquisition program and our acquisitions may not be successful, may involve unanticipated costs or other integration issues or may disrupt our existing operations. A detailed discussion of these factors and other risks that affect our business is contained in our U.S. Securities and Exchange Commission (SEC) filings, including our most recent reports on Form 10-K and Form 10-Q, particularly under the heading "Risk Factors." Copies of these filings are available online from the SEC or by contacting Oracle Corporation's Investor Relations Department at (650) 506-4073 or by clicking on SEC Filings on Oracle's Investor Relations website at http://www.oracle.com/investor. All information set forth in this press release is current as of September 17, 2018. Oracle undertakes no duty to update any statement in light of new information or future events.

 













ORACLE  CORPORATION














 Q1 FISCAL 2019 FINANCIAL RESULTS
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

($ in millions, except per share data)
















Three Months Ended August 31,


% Increase










% Increase

(Decrease)







% of 


% of 

(Decrease)

in Constant






2018

Revenues

2017

Revenues

in US $

Currency (1)




REVENUES











Cloud services and license support 

$           6,609

72%

$           6,407

71%

3%

4%





Cloud license and on-premise license

867

9%

894

10%

(3%)

0%





Hardware

904

10%

943

10%

(4%)

(3%)





Services

813

9%

860

9%

(5%)

(4%)





      Total revenues

9,193

100%

9,104

100%

1%

2%




OPERATING EXPENSES











Cloud services and license support 

913

10%

857

9%

7%

8%





Hardware

326

4%

372

4%

(12%)

(11%)





Services

714

8%

699

8%

2%

4%





Sales and marketing

2,039

22%

1,989

22%

3%

4%





Research and development 

1,564

17%

1,572

17%

(1%)

0%





General and administrative

321

3%

319

4%

1%

2%





Amortization of intangible assets

434

5%

411

5%

6%

6%





Acquisition related and other

14

0%

12

0%

21%

23%





Restructuring

90

1%

124

1%

(28%)

(27%)





      Total operating expenses 

6,415

70%

6,355

70%

1%

2%




OPERATING INCOME 

2,778

30%

2,749

30%

1%

3%





Interest expense

(529)

(5%)

(469)

(5%)

13%

13%





Non-operating income, net 

291

3%

220

3%

33%

34%




INCOME BEFORE PROVISION FOR INCOME TAXES

2,540

28%

2,500

28%

2%

4%





Provision for income taxes

275

3%

356

4%

(23%)

(23%)




NET INCOME

$           2,265

25%

$           2,144

24%

6%

8%















EARNINGS PER SHARE:











Basic

$              0.58


$              0.52








Diluted

$              0.57


$              0.50







WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:











Basic

3,904


4,156








Diluted

3,999


4,284






























































(1)

We compare the percent change in the results from one period to another period using constant currency disclosure. We present constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars at the exchange rates in effect on May 31, 2018, which was the last day of our prior fiscal year, rather than the actual exchange rates in effect during the respective periods. Movements in international currencies relative to the United States dollar during the three months ended August 31, 2018 compared with the corresponding prior year period decreased our revenues by 1 percentage point, operating expenses by 1 percentage point and operating income by 2 percentage points.

























 

 

























ORACLE  CORPORATION


























 Q1 FISCAL 2019 FINANCIAL RESULTS



RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1) 



($ in millions, except per share data)





























Three Months Ended August 31,


% Increase (Decrease)
in US $

% Increase (Decrease) in
Constant Currency (2) 






2018




2018



2017




2017


GAAP

Non-GAAP

GAAP

Non-GAAP







GAAP


Adj.


Non-GAAP



GAAP


Adj.


Non-GAAP




























TOTAL REVENUES


$     9,193


$            8


$     9,201



$     9,104


$          25


$     9,129


1%

1%

2%

2%





Cloud services and license support


6,609


8


6,617



6,407


25


6,432


3%

3%

4%

4%



























TOTAL OPERATING EXPENSES


$     6,415


$      (974)


$     5,441



$     6,355


$      (938)


$     5,417


1%

0%

2%

2%





Sales and marketing (3)


2,039


(94)


1,945



1,989


(78)


1,911


3%

2%

4%

3%





Stock-based compensation (4)


342


(342)


-



313


(313)


-


9%

*

9%

*





Amortization of intangible assets (5)


434


(434)


-



411


(411)


-


6%

*

6%

*





Acquisition related and other


14


(14)


-



12


(12)


-


21%

*

23%

*





Restructuring


90


(90)


-



124


(124)


-


(28%)

*

(27%)

*




OPERATING INCOME


$     2,778


$        982


$     3,760



$     2,749


$        963


$     3,712


1%

1%

3%

3%




OPERATING MARGIN %


30%




41%



30%




41%


2 bp.

20 bp.

13 bp.

19 bp.




INCOME TAX EFFECTS (6)


$        275


$        398


$        673



$        356


$        510


$        866


(23%)

(22%)

(23%)

(21%)




NET INCOME


$     2,265


$        584


$     2,849



$     2,144


$        453


$     2,597


6%

10%

8%

12%




DILUTED EARNINGS PER SHARE 


$       0.57




$       0.71



$       0.50




$       0.61


13%

18%

16%

19%




DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 


3,999


-


3,999



4,284


-


4,284


(7%)

(7%)

(7%)

(7%)


















































(1)

This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures, the usefulness of these measures and the material limitations on the usefulness of these measures, please see Appendix A.



























(2)

We compare the percent change in the results from one period to another period using constant currency disclosure. We present constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars at the exchange rates in effect on May 31, 2018, which was the last day of our prior fiscal year, rather than the actual exchange rates in effect during the respective periods.



























(3)

Non-GAAP adjustments to sales and marketing expenses were as follows:











Three Months Ended





















August 31,





















2018


2017



















Stock-based compensation (4)


$         (94)


$         (89)



















Acquired deferred sales commissions amortization


-


11



















           Total non-GAAP sales and marketing adjustments


$         (94)


$         (78)









































(4)

Stock-based compensation was included in the following GAAP operating expense categories:


































Three Months Ended



Three Months Ended












August 31, 2018



August 31, 2017












GAAP


Adj.


Non-GAAP



GAAP


Adj.


Non-GAAP










Cloud services and license support


$          24


$         (24)


$           -



$          18


$         (18)


$           -










Hardware


3


(3)


-



3


(3)


-










Services


13


(13)


-



14


(14)


-










Research and development


257


(257)


-



234


(234)


-










General and administrative


45


(45)


-



44


(44)


-










           Subtotal


342


(342)


-



313


(313)


-










Sales and marketing


94


(94)


-



89


(89)


-



This article was written by cool news network.

 

 

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