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Oracle Corp (ORCL) SEC Filing 8-K Material Event for the period ending Thursday, December 9, 2021

Oracle Corp

CIK: 1341439 Ticker: ORCL

Exhibit 99.1

 

For Immediate Release

 

 

 

 

 

 

Contact:

  

Ken Bond

  

Deborah Hellinger

 

  

Oracle Investor Relations

  

Oracle Corporate Communications

 

  

1.650.607.0349

  

1.212.508.7935

 

  

ken.bond@oracle.com

  

deborah.hellinger@oracle.com

 

Oracle Announces Fiscal 2022 Second Quarter Financial Results

 

Total Revenue up 6% to $10.4 Billion

Total Cloud Revenue (IaaS plus SaaS) up 22% to $2.7 Billion

Fusion ERP cloud revenue up 35%, NetSuite ERP cloud revenue up 29%

AUSTIN, Texas, December 9, 2021 -- Oracle Corporation (NYSE: ORCL) today announced fiscal 2022 Q2 results. Total quarterly revenues were up 6% year-over-year to $10.4 billion. Cloud services and license support revenues were up 6% to $7.6 billion. Cloud license and on-premise license revenues were up 13% to $1.2 billion.

Oracle’s Q2 GAAP results were adversely impacted by the payment of a judgment related to a ten year old dispute surrounding former CEO Mark Hurd’s employment. That payment resulted in a Q2 GAAP operating loss of $824 million and a loss per share of $0.46. Q2 Non-GAAP operating income was up 6% to $4.9 billion and earnings per share was up 14% to $1.21.

Short-term deferred revenues were $7.9 billion. Operating cash flow was $10.3 billion during the trailing twelve months.

“Oracle’s Q2 Non-GAAP earnings per share was up 14% to $1.21—beating guidance by $0.10,” said Oracle CEO, Safra Catz. “Constant currency revenue beat guidance by $200 million. These strong results are being driven by the 22% growth of our infrastructure and applications cloud businesses which are approaching $11 billion in annualized revenue. We now have 8,500 Fusion ERP customers with revenue growing 35%, 28,400 NetSuite ERP customers with revenue growing 29%, and our Gen2 infrastructure businesses are growing even faster—and accelerating.”

“Oracle’s Autonomous Database and new MySQL Database with HeatWave are the world’s two highest-performance databases,” said Oracle Chairman and CTO, Larry Ellison. “Because of their extreme high-performance, both products present huge growth opportunities for our cloud infrastructure business. Oracle database on-premise customers are choosing our Autonomous Database as they move to the public cloud and our unique Cloud@Customer service. Amazon Aurora customers are discovering that moving to MySQL with HeatWave can increase their performance by more than ten-times—with a corresponding reduction in cost. These two databases will sustain Oracle’s database market and technology leadership for years to come.”

The board of directors increased the authorization for share repurchases by $10 billion. The board of directors also declared a quarterly cash dividend of $0.32 per share of outstanding common stock. This dividend will be paid to stockholders of record as of the close of business on January 7, 2022, with a payment date of January 19, 2022.

 

A sample list of customers which purchased Oracle Cloud services during the quarter will be available at www.oracle.com/customers/earnings/.

 

A list of recent technical innovations and announcements is available at www.oracle.com/news/.

 

To learn what industry analysts have been saying about Oracle’s products and services see www.oracle.com/corporate/analyst-reports.html.

Earnings Conference Call and Webcast

Oracle will hold a conference call and webcast today to discuss these results at 4:00 p.m. Central. A live and replay webcast will be available on the Oracle Investor Relations website at www.oracle.com/investor/.

 


About Oracle

Oracle offers integrated suites of applications plus secure, autonomous infrastructure in the Oracle Cloud. For more information about Oracle (NYSE: ORCL), please visit us at www.oracle.com.

# # #

Trademarks

Oracle, Java, and MySQL are registered trademarks of Oracle Corporation.

 


 

"Safe Harbor" Statement: Statements in this press release relating to Oracle's future plans, expectations, beliefs, intentions and prospects, including statements regarding growth in our infrastructure and applications cloud businesses and our future database market and technology leadership, are "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) The COVID-19 pandemic has affected how we and our customers are operating our respective businesses, and the duration and extent to which this will impact our future results of operations remains uncertain. (2) Our success depends upon our ability to develop new products and services, integrate acquired products and services and enhance our existing products and services. (3) Our cloud strategy, including our Oracle Cloud Software-as-a-Service and Infrastructure-as-a-Service offerings, may adversely affect our revenues and profitability. (4) We might experience significant coding, manufacturing or configuration errors in our cloud, license and hardware offerings. (5) If our security measures for our products and services are compromised and as a result, our data, 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, the IT services we provide to our customers could be disrupted, and customers may stop using our products and services, any of which could reduce our revenue and earnings, increase our expenses and expose us to legal claims and regulatory actions. (6) 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 privacy and data protection. (7) 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. (8) If we are unable to compete effectively, the results of operations and prospects for our business could be harmed. (9) Our international sales and operations subject us to additional risks that can adversely affect our operating results. (10) We are susceptible to third-party manufacturing and logistics delays, which could result in the loss of sales and customers. A detailed discussion of these factors and other risks that affect our business is contained in our 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 www.oracle.com/investor/. All information set forth in this press release is current as of December 9, 2021. Oracle undertakes no duty to update any statement in light of new information or future events.

 


 

ORACLE CORPORATION

Q2 FISCAL 2022 FINANCIAL RESULTS

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

($ in millions, except per share data)

 

 

 

Three Months Ended November 30,

 

% Increase

 

% Increase

(Decrease)

 

 

2021

 

 

% of

Revenues

 

2020

 

 

% of

Revenues

 

(Decrease)

in US $

 

in Constant

Currency (1)

REVENUES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cloud services and license support

 

$

7,554

 

 

73%

 

$

7,112

 

 

72%

 

6%

 

6%

Cloud license and on-premise license

 

 

1,237

 

 

12%

 

 

1,092

 

 

11%

 

13%

 

16%

Hardware

 

 

767

 

 

7%

 

 

844

 

 

9%

 

(9%)

 

(8%)

Services

 

 

802

 

 

8%

 

 

752

 

 

8%

 

7%

 

7%

Total revenues

 

 

10,360

 

 

100%

 

 

9,800

 

 

100%

 

6%

 

6%

OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cloud services and license support

 

 

1,259

 

 

12%

 

 

1,064

 

 

11%

 

18%

 

19%

Hardware

 

 

229

 

 

2%

 

 

244

 

 

2%

 

(6%)

 

(5%)

Services

 

 

671

 

 

7%

 

 

631

 

 

6%

 

6%

 

7%

Sales and marketing

 

 

1,954

 

 

19%

 

 

1,836

 

 

19%

 

6%

 

7%

Research and development

 

 

1,754

 

 

17%

 

 

1,601

 

 

16%

 

10%

 

9%

General and administrative

 

 

319

 

 

3%

 

 

324

 

 

3%

 

(2%)

 

(2%)

Amortization of intangible assets

 

 

299

 

 

3%

 

 

345

 

 

4%

 

(13%)

 

(13%)

Acquisition related and other (2)

 

 

4,667

 

 

45%

 

 

76

 

 

1%

 

*

 

*

Restructuring

 

 

32

 

 

0%

 

 

96

 

 

1%

 

(67%)

 

(67%)

Total operating expenses

 

 

11,184

 

 

108%

 

 

6,217

 

 

63%

 

80%

 

79%

OPERATING (LOSS) INCOME

 

 

(824

)

 

(8%)

 

 

3,583

 

 

37%

 

*

 

*

Interest expense

 

 

(679

)

 

(6%)

 

 

(600

)

 

(7%)

 

13%

 

13%

Non-operating income (expenses), net

 

 

7

 

 

0%

 

 

(11

)

 

0%

 

*

 

*

(LOSS) INCOME BEFORE INCOME TAXES

 

 

(1,496

)

 

(14%)

 

 

2,972

 

 

30%

 

*

 

*

Benefit from (provision for) income taxes

 

 

249

 

 

2%

 

 

(530

)

 

(5%)

 

*

 

*

NET (LOSS) INCOME

 

$

(1,247

)

 

(12%)

 

$

2,442

 

 

25%

 

*

 

*

(LOSS) EARNINGS PER SHARE:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.46

)

 

 

 

$

0.82

 

 

 

 

 

 

 

Diluted

 

$

(0.46

)

 

 

 

$

0.80

 

 

 

 

 

 

 

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

2,694

 

 

 

 

 

2,977

 

 

 

 

 

 

 

Diluted

 

 

2,694

 

 

 

 

 

3,046

 

 

 

 

 

 

 

 

(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, 2021, 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 November 30, 2021 compared with the corresponding prior year period increased our total operating expenses by 1 percentage point.

(2)

Acquisition related and other for the three months ended November 30, 2021 included the impact of litigation related charges totaling $4.7 billion.

*

Not meaningful

1


ORACLE CORPORATION

Q2 FISCAL 2022 FINANCIAL RESULTS

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

($ in millions, except per share data)

 

 

 

Three Months Ended November 30,

 

 

% Increase (Decrease)

in US $

 

% Increase (Decrease) in

Constant Currency (2)

 

 

2021

GAAP

 

 

Adj.

 

 

2021

Non-GAAP

 

 

2020

GAAP

 

 

Adj.

 

 

2020

Non-GAAP

 

 

GAAP

 

Non-GAAP

 

GAAP

 

Non-GAAP

TOTAL REVENUES

 

$

10,360

 

 

$

 

 

$

10,360

 

 

$

9,800

 

 

$

 

 

$

9,800

 

 

6%

 

6%

 

6%

 

6%

TOTAL OPERATING EXPENSES

 

$

11,184

 

 

$

(5,679

)

 

$

5,505

 

 

$

6,217

 

 

$

(1,005

)

 

$

5,212

 

 

80%

 

6%

 

79%

 

6%

Stock-based compensation (3)

 

 

681

 

 

 

(681

)

 

 

 

 

 

488

 

 

 

(488

)

 

 

 

 

39%

 

*

 

39%

 

*

Amortization of intangible assets (4)

 

 

299

 

 

 

(299

)

 

 

 

 

 

345

 

 

 

(345

)

 

 

 

 

(13%)

 

*

 

(13%)

 

*

Acquisition related and other

 

 

4,667

 

 

 

(4,667

)

 

 

 

 

 

76

 

 

 

(76

)

 

 

 

 

*

 

*

 

*

 

*

Restructuring

 

 

32

 

 

 

(32

)

 

 

 

 

 

96

 

 

 

(96

)

 

 

 

 

(67%)

 

*

 

(67%)

 

*

OPERATING (LOSS) INCOME

 

$

(824

)

 

$

5,679

 

 

$

4,855

 

 

$

3,583

 

 

$

1,005

 

 

$

4,588

 

 

*

 

6%

 

*

 

7%

OPERATING MARGIN %

 

(8%)

 

 

 

 

 

 

47%

 

 

37%

 

 

 

 

 

 

47%

 

 

*

 

5 bp.

 

*

 

14 bp.

INCOME TAX EFFECTS (5)

 

$

249

 

 

$

(1,052

)

 

$

(803

)

 

$

(530

)

 

$

(212

)

 

$

(742

)

 

*

 

8%

 

*

 

9%

NET (LOSS) INCOME

 

$

(1,247

)

 

$

4,627

 

 

$

3,380

 

 

$

2,442

 

 

$

793

 

 

$

3,235

 

 

*

 

4%

 

*

 

5%

DILUTED (LOSS) EARNINGS PER SHARE (6)

 

$

(0.46

)

 

 

 

 

 

$

1.21

 

 

$

0.80

 

 

 

 

 

 

$

1.06

 

 

*

 

14%

 

*

 

15%

DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING (6)

 

 

2,694

 

 

 

91

 

 

 

2,785

 

 

 

3,046

 

 

 

 

 

 

3,046

 

 

(12%)

 

(9%)

 

(12%)

 

(9%)

 

 

(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, 2021, which was the last day of our prior fiscal year, rather than the actual exchange rates in effect during the respective periods.

(3)

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

 

 

 

Three Months Ended

November 30, 2021

 

 

Three Months Ended

November 30, 2020

 

 

 

GAAP

 

 

Adj.

 

 

Non-GAAP

 

 

GAAP

 

 

Adj.

 

 

Non-GAAP

 

Cloud services and license support

 

$

50

 

 

$

(50

)

 

$

 

 

$

36

 

 

$

(36

)

 

$

 

Hardware

 

 

4

 

 

 

(4

)

 

 

 

 

 

3

 

 

 

(3

)

 

 

 

Services

 

 

18

 

 

 

(18

)

 

 

 

 

 

14

 

 

 

(14

)

 

 

 

Sales and marketing

 

 

120

 

 

 

(120

)

 

 

 

 

 

80

 

 

 

(80

)

 

 

 

Research and development

 

 

423

 

 

 

(423

)

 

 

 

 

 

314

 

 

 

(314

)

 

 

 

General and administrative

 

 

66

 

 

 

(66

)

 

 

 

 

 

41

 

 

 

(41

)

 

 

 

Total stock-based compensation

 

$

681

 

 

$

(681

)

 

$

 

 

$

488

 

 

$

(488

)

 

$

 

 

(4)

Estimated future annual amortization expense related to intangible assets as of November 30, 2021 was as follows:

 

Remainder of fiscal 2022

 

$

534

 

Fiscal 2023

 

 

716

 

Fiscal 2024

 

 

473

 

Fiscal 2025

 

 

124

 

Fiscal 2026

 

 

24

 

Fiscal 2027

 

 

6

 

Thereafter

 

 

4

 

Total intangible assets, net

 

$

1,881

 

 

(5)

Income tax effects were calculated reflecting an effective GAAP tax rate of (16.6%) and 17.8% in the second quarter of fiscal 2022 and 2021, respectively, and an effective non-GAAP tax rate of 19.2% and 18.7% in the second quarter of fiscal 2022 and 2021, respectively. The difference in our GAAP and non-GAAP tax rates in the second quarter of fiscal 2022 was primarily due to the net tax effects related to stock-based compensation expense and acquisition related and other items, including the net tax effects for litigation related charges (refer to Appendix A for additional information), and the net tax effects on amortization of intangible assets, partially offset by the net deferred tax effects related to an income tax benefit that was previously recorded due to the partial realignment of our legal entity structure. The difference in our GAAP and non-GAAP tax rates in the second quarter of fiscal 2021 was primarily due to the net tax effects on stock-based compensation expense and acquisition related and other items, including the tax effects on amortization of intangible assets.

(6)

In the second quarter of fiscal 2022, GAAP diluted loss per share was calculated excluding the dilutive effects of 91 million shares related to employee stock plans as the effect would be anti-dilutive.

*

Not meaningful

2


ORACLE CORPORATION

Q2 FISCAL 2022 YEAR TO DATE FINANCIAL RESULTS

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

($ in millions, except per share data)

 

 

 

Six Months Ended November 30,

 

% Increase

 

% Increase

(Decrease)

 

 

2021

 

 

% of

Revenues

 

2020

 

 

% of

Revenues

 

(Decrease)

in US $

 

in Constant

Currency (1)

REVENUES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cloud services and license support

 

$

14,925

 

 

74%

 

$

14,059

 

 

73%

 

6%

 

6%

Cloud license and on-premise license

 

 

2,049

 

 

10%

 

 

1,978

 

 

10%

 

4%

 

4%

Hardware

 

 

1,530

 

 

8%

 

 

1,658

 

 

9%

 

(8%)

 

(8%)

Services

 

 

1,583

 

 

8%

 

 

1,472

 

 

8%

 

8%

 

7%

Total revenues

 

 

20,087

 

 

100%

 

 

19,167

 

 

100%

 

5%

 

4%

OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cloud services and license support

 

 

2,472

 

 

12%

 

 

2,075

 

 

11%

 

19%

 

19%

Hardware

 

 

474

 

 

2%

 

 

490

 

 

3%

 

(3%)

 

(3%)

Services

 

 

1,315

 

 

7%

 

 

1,254

 

 

7%

 

5%

 

4%

Sales and marketing

 

 

3,808

 

 

19%

 

 

3,690

 

 

19%

 

3%

 

3%

Research and development

 

 

3,438

 

 

17%

 

 

3,190

 

 

17%

 

8%

 

7%

General and administrative

 

 

618

 

 

3%

 

 

619

 

 

3%

 

0%

 

(1%)

Amortization of intangible assets

 

 

603

 

 

3%

 

 

690

 

 

4%

 

(13%)

 

(13%)

Acquisition related and other (2)

 

 

4,687

 

 

24%

 

 

95

 

 

0%

 

*

 

*

Restructuring

 

 

70

 

 

0%

 

 

270

 

 

1%

 

(74%)

 

(74%)

Total operating expenses

 

 

17,485

 

 

87%

 

 

12,373

 

 

65%

 

41%

 

40%

OPERATING INCOME

 

 

2,602

 

 

13%

 

 

6,794

 

 

35%

 

(62%)

 

(60%)

Interest expense

 

 

(1,384

)

 

(7%)

 

 

(1,214

)

 

(6%)

 

14%

 

14%

Non-operating expenses, net

 

 

(34

)

 

0%

 

 

(13

)

 

0%

 

158%

 

97%

INCOME BEFORE INCOME TAXES

 

 

1,184

 

 

6%

 

 

5,567

 

 

29%

 

(79%)

 

(76%)

Benefit from (provision for) income taxes

 

 

25

 

 

0%

 

 

(874

)

 

(5%)

 

*

 

*

NET INCOME

 

$

1,209

 

 

6%

 

$

4,693

 

 

24%

 

(74%)

 

(71%)

EARNINGS PER SHARE:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.44

 

 

 

 

$

1.56

 

 

 

 

 

 

 

Diluted

 

$

0.43

 

 

 

 

$

1.53

 

 

 

 

 

 

 

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

2,731

 

 

 

 

 

3,009

 

 

 

 

 

 

 

Diluted

 

 

2,823

 

 

 

 

 

3,076

 

 

 

 

 

 

 

 

(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, 2021, 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 six months ended November 30, 2021 compared with the corresponding prior year period increased our total revenues and total operating expenses, each by 1 percentage point, and decreased our operating income by 2 percentage points.

(2)

Acquisition related and other for the six months ended November 30, 2021 included the impact of litigation related charges totaling $4.7 billion.

*

Not meaningful

3


ORACLE CORPORATION

Q2 FISCAL 2022 YEAR TO DATE FINANCIAL RESULTS

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

($ in millions, except per share data)

 

 

 

Six Months Ended November 30,

 

 

% Increase (Decrease)

in US $

 

% Increase  (Decrease) in

Constant Currency (2)

 

 

2021

GAAP

 

 

Adj.

 

 

2021

Non-GAAP

 

 

2020

GAAP

 

 

Adj.

 

 

2020

Non-GAAP

 

 

GAAP

 

Non-GAAP

 

GAAP

 

Non-GAAP

TOTAL REVENUES

 

$

20,087

 

 

$

 

 

$

20,087

 

 

$

19,167

 

 

$

1

 

 

$

19,168

 

 

5%

 

5%

 

4%

 

4%

Cloud services and license support

 

 

14,925

 

 

 

 

 

 

14,925

 

 

 

14,059

 

 

 

1

 

 

 

14,060

 

 

6%

 

6%

 

6%

 

6%

TOTAL OPERATING EXPENSES

 

$

17,485

 

 

$

(6,586

)

 

$

10,899

 

 

$

12,373

 

 

$

(1,971

)

 

$

10,402

 

 

41%

 

5%

 

40%

 

4%

Stock-based compensation (3)

 

 

1,226

 

 

 

(1,226

)

 

 

 

 

 

916

 

 

 

(916

)

 

 

 

 

34%

 

*

 

34%

 

*

Amortization of intangible assets (4)

 

 

603

 

 

 

(603

)

 

 

 

 

 

690

 

 

 

(690

)

 

 

 

 

(13%)

 

*

 

(13%)

 

*

Acquisition related and other

 

 

4,687

 

 

 

(4,687

)

 

 

 

 

 

95

 

 

 

(95

)

 

 

 

 

*

 

*

 

*

 

*

Restructuring

 

 

70

 

 

 

(70

)

 

 

 

 

 

270

 

 

 

(270

)

 

 

 

 

(74%)

 

*

 

(74%)

 

*

OPERATING INCOME

 

$

2,602

 

 

$

6,586

 

 

$

9,188

 

 

$

6,794

 

 

$

1,972

 

 

$

8,766

 

 

(62%)

 

5%

 

(60%)

 

4%

OPERATING MARGIN %

 

13%

 

 

 

 

 

 

46%

 

 

35%

 

 

 

 

 

 

46%

 

 

*

 

1 bp.

 

*

 

0 bp.

INCOME TAX EFFECTS (5)

 

$

25

 

 

$

(1,473

)

 

$

(1,448

)

 

$

(874

)

 

$

(548

)

 

$

(1,422

)

 

*

 

2%

 

*

 

1%

NET INCOME

 

$

1,209

 

 

$

5,113

 

 

$

6,322

 

 

$

4,693

 

 

$

1,424

 

 

$

6,117

 

 

(74%)

 

3%

 

(71%)

 

3%

DILUTED EARNINGS PER SHARE

 

$

0.43

 

 

 

 

 

 

$

2.24

 

 

$

1.53

 

 

 

 

 

 

$

1.99

 

 

(72%)

 

13%

 

(68%)

 

12%

DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING

 

 

2,823

 

 

 

 

 

 

2,823

 

 

 

3,076

 

 

 

 

 

 

3,076

 

 

(8%)

 

(8%)

 

(8%)

 

(8%)

 

(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, 2021, which was the last day of our prior fiscal year, rather than the actual exchange rates in effect during the respective periods.

(3)

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

 

 

 

Six Months Ended

November 30, 2021

 

 

Six Months Ended

November 30, 2020

 

 

 

GAAP

 

 

Adj.

 

 

Non-GAAP

 

 

GAAP

 

 

Adj.

 

 

Non-GAAP

 

Cloud services and license support

 

$

90

 

 

$

(90

)

 

$

 

 

$

66

 

 

$

(66

)

 

$

 

Hardware

 

 

7

 

 

 

(7

)

 

 

 

 

 

6

 

 

 

(6

)

 

 

 

Services

 

 

32

 

 

 

(32

)

 

 

 

 

 

26

 

 

 

(26

)

 

 

 

Sales and marketing

 

 

215

 

 

 

(215

)

 

 

 

 

 

151

 

 

 

(151

)

 

 

 

Research and development

 

 

767

 

 

 

(767

)

 

 

 

 

 

590

 

 

 

(590

)

 

 

 

General and administrative

 

 

115

 

 

 

(115

)

 

 

 

 

 

77

 

 

 

(77

)

 

 

 

Total stock-based compensation

 

$

1,226

 

 

$

(1,226

)

 

$

 

 

$

916

 

 

$

(916

)

 

$

 

 

(4)

Estimated future annual amortization expense related to intangible assets as of November 30, 2021 was as follows:

 

Remainder of fiscal 2022

 

$

534

 

Fiscal 2023