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Oracle Corp (ORCL) SEC Filing 8-K Material Event for the period ending Thursday, March 10, 2022

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 Third Quarter Financial Results

 

Total Revenue $10.5 billion, up 4% and up 7% in constant currency

Total Cloud Revenue (IaaS plus SaaS) of $2.8 billion, up 24% and up 26% in constant currency

Fusion ERP Cloud Revenue up 33% and up 35% in constant currency

NetSuite ERP Cloud Revenue up 27% and up 29% in constant currency

AUSTIN, Texas, March 10, 2022 -- Oracle Corporation (NYSE: ORCL) today announced fiscal 2022 Q3 results. Total quarterly revenues were up 4% year-over-year in USD and up 7% in constant currency to $10.5 billion. Cloud services and license support revenues were up 5% in USD and up 8% in constant currency to $7.6 billion. Cloud license and on-premise license revenues were up 1% in USD and up 4% in constant currency to $1.3 billion.

Q3 GAAP operating income was $3.8 billion, down 1% in USD and up 3% in constant currency. Non-GAAP operating income was $4.8 billion, up 1% in USD and up 4% in constant currency. GAAP operating margin was 36%, and non-GAAP operating margin was 46%. GAAP net income was $2.3 billion, and non-GAAP net income was $3.1 billion.

Q3 GAAP earnings per share was $0.84 while non-GAAP earnings per share was $1.13, down 3% in USD and up 1% in constant currency. Q3 earnings per share was lowered by $0.05 primarily because of a decline in the share price of revolutionary gene sequencing company Oxford Nanopore, and an operating loss at Ampere, the maker of the world’s fastest ARM Server Chips. We remain confident that our investments in these two cutting-edge technology companies will deliver very strong returns for Oracle.

Short-term deferred revenues were $7.9 billion. Operating cash flow was $10.4 billion during the trailing twelve months.

“In Q3, Oracle delivered over 7% constant currency revenue growth—our highest quarterly organic revenue growth rate since we began our transition to the cloud,” said Oracle CEO, Safra Catz. “This strong top line growth was coupled with a solid non-GAAP constant currency operating profit growth of 4%, but the big story is that our overall revenue growth is being driven by both our rapidly growing Cloud Infrastructure and Cloud Applications businesses. Q3 Cloud Infrastructure revenue was up 47% in constant currency. Q3 Cloud Applications growth was led by Fusion ERP, which was up 35% in constant currency and NetSuite ERP which was up 29% in constant currency. Total Cloud revenue which includes Cloud Infrastructure and Cloud Applications is now over $11 billion a year.”

“In Q3, Oracle completed development of the multi-cloud version of our MySQL HeatWave open-source database,” said Oracle Chairman and CTO, Larry Ellison. “The MySQL HeatWave database is already running in the Oracle Gen2 Cloud. In a few weeks, MySQL HeatWave will also be available in the Amazon Cloud and the Microsoft Azure Cloud. MySQL HeatWave was designed to compete with Amazon’s version of MySQL called Aurora, Snowflake and other popular cloud databases. What customer and database analysts are saying about Oracle’s new MySQL HeatWave database is simply astonishing. Here are a couple of examples of what the database analysts are saying.”

“Oracle have shown AWS, Snowflake and other database providers how to design and architect a True MySQL Cloud Database. Customers can expect MySQL HeatWave to perform about 7 times faster than Amazon Redshift or Snowflake at 2-5 times lower cost. The benefits over Amazon Aurora are even greater.”

The following is an approved quote from the database analysts at Wikibon:

“We believe that the technology underlying MySQL HeatWave is an inflection point in database design and architecture. The MySQL HeatWave technology is by far the best in the market now, and we believe that the MySQL HeatWave competitive advantage is sustainable for at least three years. We also believe customers will demand that AWS provide similar converged functionality as HeatWave.”

The board of directors 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 April 8, 2022, with a payment date of April 21, 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 the future performance of certain of our investments and the competitive advantages of the MySQL HeatWave technology, 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's Investor Relations Department at (650) 506-4073 or by clicking on SEC Filings on the Oracle Investor Relations website at www.oracle.com/investor/. All information set forth in this press release is current as of March 10, 2022. Oracle undertakes no duty to update any statement in light of new information or future events.

 

 


 

 

ORACLE CORPORATION

Q3 FISCAL 2022 FINANCIAL RESULTS

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

($ in millions, except per share data)

 

 

 

Three Months Ended February 28,

 

% Increase

 

% Increase

(Decrease)

 

 

2022

 

 

% of

Revenues

 

2021

 

 

% of

Revenues

 

(Decrease)

in US $

 

in Constant

Currency (1)

REVENUES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cloud services and license support

 

$

7,637

 

 

73%

 

$

7,252

 

 

72%

 

5%

 

8%

Cloud license and on-premise license

 

 

1,289

 

 

12%

 

 

1,276

 

 

13%

 

1%

 

4%

Hardware

 

 

798

 

 

8%

 

 

820

 

 

8%

 

(3%)

 

1%

Services

 

 

789

 

 

7%

 

 

737

 

 

7%

 

7%

 

11%

Total revenues

 

 

10,513

 

 

100%

 

 

10,085

 

 

100%

 

4%

 

7%

OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cloud services and license support

 

 

1,305

 

 

13%

 

 

1,064

 

 

11%

 

23%

 

25%

Hardware

 

 

244

 

 

2%

 

 

230

 

 

2%

 

6%

 

11%

Services

 

 

669

 

 

7%

 

 

621

 

 

6%

 

8%

 

11%

Sales and marketing

 

 

2,004

 

 

19%

 

 

1,915

 

 

19%

 

5%

 

7%

Research and development

 

 

1,816

 

 

17%

 

 

1,621

 

 

16%

 

12%

 

13%

General and administrative

 

 

335

 

 

3%

 

 

330

 

 

3%

 

2%

 

3%

Amortization of intangible assets

 

 

279

 

 

3%

 

 

347

 

 

4%

 

(20%)

 

(19%)

Acquisition related and other

 

 

20

 

 

0%

 

 

13

 

 

0%

 

47%

 

54%

Restructuring

 

 

19

 

 

0%

 

 

66

 

 

1%

 

(71%)

 

(70%)

Total operating expenses

 

 

6,691

 

 

64%

 

 

6,207

 

 

62%

 

8%

 

10%

OPERATING INCOME

 

 

3,822

 

 

36%

 

 

3,878

 

 

38%

 

(1%)

 

3%

Interest expense

 

 

(667

)

 

(6%)

 

 

(585

)

 

(6%)

 

14%

 

14%

Non-operating expenses, net

 

 

(315

)

 

(3%)

 

 

(17

)

 

0%

 

*

 

*

INCOME BEFORE INCOME TAXES

 

 

2,840

 

 

27%

 

 

3,276

 

 

32%

 

(13%)

 

(8%)

(Provision for) benefit from income taxes

 

 

(521

)

 

(5%)

 

 

1,745

 

 

18%

 

*

 

*

NET INCOME

 

$

2,319

 

 

22%

 

$

5,021

 

 

50%

 

(54%)

 

(51%)

EARNINGS PER SHARE:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.87

 

 

 

 

$

1.72

 

 

 

 

 

 

 

Diluted

 

$

0.84

 

 

 

 

$

1.68

 

 

 

 

 

 

 

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

2,670

 

 

 

 

 

2,913

 

 

 

 

 

 

 

Diluted

 

 

2,754

 

 

 

 

 

2,994

 

 

 

 

 

 

 

 

(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 February 28, 2022 compared with the corresponding prior year period decreased our total revenues by 3 percentage points, total operating expenses by 2 percentage points and operating income by 4 percentage points.

*

Not meaningful

1


 

ORACLE CORPORATION

Q3 FISCAL 2022 FINANCIAL RESULTS

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

($ in millions, except per share data)

 

 

 

Three Months Ended February 28,

 

 

% Increase (Decrease)

in US $

 

% Increase (Decrease) in

Constant Currency (2)

 

 

2022

GAAP

 

 

Adj.

 

 

2022

Non-GAAP

 

 

2021

GAAP

 

 

Adj.

 

 

2021

Non-GAAP

 

 

GAAP

 

Non-GAAP

 

GAAP

 

Non-GAAP

TOTAL REVENUES

 

$

10,513

 

 

$

 

 

$

10,513

 

 

$

10,085

 

 

$

1

 

 

$

10,086

 

 

4%

 

4%

 

7%

 

7%

Cloud services and license support

 

 

7,637

 

 

 

 

 

 

7,637

 

 

 

7,252

 

 

 

1

 

 

 

7,253

 

 

5%

 

5%

 

8%

 

8%

TOTAL OPERATING EXPENSES

 

$

6,691

 

 

$

(992

)

 

$

5,699

 

 

$

6,207

 

 

$

(905

)

 

$

5,302

 

 

8%

 

8%

 

10%

 

10%

Stock-based compensation (3)

 

 

674

 

 

 

(674

)

 

 

 

 

 

479

 

 

 

(479

)

 

 

 

 

41%

 

*

 

41%

 

*

Amortization of intangible assets (4)

 

 

279

 

 

 

(279

)

 

 

 

 

 

347

 

 

 

(347

)

 

 

 

 

(20%)

 

*

 

(19%)

 

*

Acquisition related and other

 

 

20

 

 

 

(20

)

 

 

 

 

 

13

 

 

 

(13

)

 

 

 

 

47%

 

*

 

54%

 

*

Restructuring

 

 

19

 

 

 

(19

)

 

 

 

 

 

66

 

 

 

(66

)

 

 

 

 

(71%)

 

*

 

(70%)

 

*

OPERATING INCOME

 

$

3,822

 

 

$

992

 

 

$

4,814

 

 

$

3,878

 

 

$

906

 

 

$

4,784

 

 

(1%)

 

1%

 

3%

 

4%

OPERATING MARGIN %

 

36%

 

 

 

 

 

 

46%

 

 

38%

 

 

 

 

 

 

47%

 

 

(210) bp.

 

(165) bp.

 

(155) bp.

 

(132) bp.

INCOME TAX EFFECTS (5)

 

$

(521

)

 

$

(209

)

 

$

(730

)

 

$

1,745

 

 

$

(2,442

)

 

$

(697

)

 

*

 

5%

 

*

 

9%

NET INCOME

 

$

2,319

 

 

$

783

 

 

$

3,102

 

 

$

5,021

 

 

$

(1,536

)

 

$

3,485

 

 

(54%)

 

(11%)

 

(51%)

 

(7%)

DILUTED EARNINGS PER SHARE

 

$

0.84

 

 

 

 

 

 

$

1.13

 

 

$

1.68

 

 

 

 

 

 

$

1.16

 

 

(50%)

 

(3%)

 

(47%)

 

1%

DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING

 

 

2,754

 

 

 

 

 

 

2,754

 

 

 

2,994

 

 

 

 

 

 

2,994

 

 

(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:

 

 

 

Three Months Ended

February 28, 2022

 

 

Three Months Ended

February 28, 2021

 

 

 

GAAP

 

 

Adj.

 

 

Non-GAAP

 

 

GAAP

 

 

Adj.

 

 

Non-GAAP

 

Cloud services and license support

 

$

55

 

 

$

(55

)

 

$

 

 

$

33

 

 

$

(33

)

 

$

 

Hardware

 

 

4

 

 

 

(4

)

 

 

 

 

 

2

 

 

 

(2

)

 

 

 

Services

 

 

17

 

 

 

(17

)

 

 

 

 

 

15

 

 

 

(15

)

 

 

 

Sales and marketing

 

 

113

 

 

 

(113

)

 

 

 

 

 

82

 

 

 

(82

)

 

 

 

Research and development

 

 

421

 

 

 

(421

)

 

 

 

 

 

307

 

 

 

(307

)

 

 

 

General and administrative

 

 

64

 

 

 

(64

)

 

 

 

 

 

40

 

 

 

(40

)

 

 

 

Total stock-based compensation

 

$

674

 

 

$

(674

)

 

$

 

 

$

479

 

 

$

(479

)

 

$

 

 

(4)

Estimated future annual amortization expense related to intangible assets as of February 28, 2022 was as follows:

 

Remainder of fiscal 2022

 

$

267

 

Fiscal 2023

 

 

744

 

Fiscal 2024

 

 

501

 

Fiscal 2025

 

 

142

 

Fiscal 2026

 

 

24

 

Fiscal 2027

 

 

6

 

Thereafter

 

 

4

 

Total intangible assets, net

 

$

1,688

 

 

(5)

Income tax effects were calculated reflecting an effective GAAP tax rate of 18.4% and (53.3%) in the third quarter of fiscal 2022 and 2021, respectively, and an effective non-GAAP tax rate of 19.0% and 16.7% in the third quarter of fiscal 2022 and 2021, respectively. The difference in our GAAP and non-GAAP tax rates in the third 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 tax effects on amortization of intangible assets, partially offset by the net deferred tax effects related to an income tax benefit that was recorded in the third quarter of fiscal 2021 due to the partial realignment of our legal entity structure. The difference in our GAAP and non-GAAP tax rates in the third quarter of fiscal 2021 was primarily due to a net tax benefit of $2.3 billion related to the partial realignment of our legal entity structure (refer to Appendix A for additional information), the net tax effects related to stock-based compensation expense, and the net tax effects related to acquisition related and other items, including the net tax effects on amortization of intangible assets.

*

Not meaningful

2


 

ORACLE CORPORATION

Q3 FISCAL 2022 YEAR TO DATE FINANCIAL RESULTS

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

($ in millions, except per share data)

 

 

 

Nine Months Ended February 28,

 

% Increase

 

% Increase

(Decrease)

 

 

2022

 

 

% of

Revenues

 

2021

 

 

% of

Revenues

 

(Decrease)

in US $

 

in Constant

Currency (1)

REVENUES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cloud services and license support

 

$

22,562

 

 

74%

 

$

21,311

 

 

73%

 

6%

 

6%

Cloud license and on-premise license

 

 

3,339

 

 

11%

 

 

3,254

 

 

11%

 

3%

 

4%

Hardware

 

 

2,328

 

 

7%

 

 

2,478

 

 

8%

 

(6%)

 

(5%)

Services

 

 

2,371

 

 

8%

 

 

2,209

 

 

8%

 

7%

 

8%

Total revenues

 

 

30,600

 

 

100%

 

 

29,252

 

 

100%

 

5%

 

5%

OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cloud services and license support

 

 

3,778

 

 

12%

 

 

3,139

 

 

11%

 

20%

 

21%

Hardware

 

 

718

 

 

2%

 

 

719

 

 

2%

 

0%

 

1%

Services

 

 

1,984

 

 

7%

 

 

1,875

 

 

6%

 

6%

 

7%

Sales and marketing

 

 

5,811

 

 

19%

 

 

5,605

 

 

19%

 

4%

 

4%

Research and development

 

 

5,254

 

 

17%

 

 

4,812

 

 

17%

 

9%

 

9%

General and administrative

 

 

953

 

 

3%

 

 

949

 

 

3%

 

0%

 

0%

Amortization of intangible assets

 

 

882

 

 

3%

 

 

1,037

 

 

4%

 

(15%)

 

(15%)

Acquisition related and other (2)

 

 

4,707

 

 

16%

 

 

107

 

 

1%

 

*

 

*

Restructuring

 

 

89

 

 

0%

 

 

337

 

 

1%

 

(74%)

 

(73%)

Total operating expenses

 

 

24,176

 

 

79%

 

 

18,580

 

 

64%

 

30%

 

30%

OPERATING INCOME

 

 

6,424

 

 

21%

 

 

10,672

 

 

36%

 

(40%)

 

(38%)

Interest expense

 

 

(2,051

)

 

(7%)

 

 

(1,799

)

 

(6%)

 

14%

 

14%

Non-operating expenses, net

 

 

(348

)

 

(1%)

 

 

(30

)

 

0%

 

*

 

*

INCOME BEFORE INCOME TAXES

 

 

4,025

 

 

13%

 

 

8,843

 

 

30%

 

(54%)

 

(51%)

(Provision for) benefit from income taxes

 

 

(497

)

 

(1%)

 

 

871

 

 

3%

 

*

 

*

NET INCOME

 

$

3,528

 

 

12%

 

$

9,714

 

 

33%

 

(64%)

 

(61%)

EARNINGS PER SHARE:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

1.30

 

 

 

 

$

3.26

 

 

 

 

 

 

 

Diluted

 

$

1.26

 

 

 

 

$

3.19

 

 

 

 

 

 

 

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

2,711

 

 

 

 

 

2,977

 

 

 

 

 

 

 

Diluted

 

 

2,800

 

 

 

 

 

3,049

 

 

 

 

 

 

 

 

(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 nine months ended February 28, 2022 compared with the corresponding prior year period decreased our operating income by 2 percentage points.

(2)

Acquisition related and other for the nine months ended February 28, 2022 included the impact of litigation related charges totaling $4.7 billion.

*

Not meaningful

3


 

ORACLE CORPORATION

Q3 FISCAL 2022 YEAR TO DATE FINANCIAL RESULTS

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

($ in millions, except per share data)

 

 

 

Nine Months Ended February 28,

 

 

% Increase (Decrease)

in US $

 

% Increase (Decrease) in

Constant Currency (2)

 

 

2022

GAAP

 

 

Adj.

 

 

2022

Non-GAAP

 

 

2021

GAAP

 

 

Adj.

 

 

2021

Non-GAAP

 

 

GAAP

 

Non-GAAP

 

GAAP

 

Non-GAAP

TOTAL REVENUES

 

$

30,600

 

 

$

 

 

$

30,600

 

 

$

29,252

 

 

$

2

 

 

$

29,254

 

 

5%

 

5%

 

5%

 

5%

Cloud services and license support

 

 

22,562

 

 

 

 

 

 

22,562

 

 

 

21,311

 

 

 

2

 

 

 

21,313

 

 

6%

 

6%

 

6%

 

6%

TOTAL OPERATING EXPENSES

 

$

24,176

 

 

$

(7,578

)

 

$

16,598

 

 

$

18,580

 

 

$

(2,876

)

 

$

15,704

 

 

30%

 

6%

 

30%

 

6%

Stock-based compensation (3)

 

 

1,900

 

 

 

(1,900

)

 

 

 

 

 

1,395

 

 

 

(1,395

)

 

 

 

 

36%

 

*

 

36%

 

*

Amortization of intangible assets (4)

 

 

882

 

 

 

(882

)

 

 

 

 

 

1,037

 

 

 

(1,037

)

 

 

 

 

(15%)

 

*

 

(15%)

 

*

Acquisition related and other

 

 

4,707

 

 

 

(4,707

)

 

 

 

 

 

107

 

 

 

(107

)

 

 

 

 

*

 

*

 

*

 

*

Restructuring

 

 

89

 

 

 

(89

)

 

 

 

 

 

337

 

 

 

(337

)

 

 

 

 

(74%)

 

*

 

(73%)

 

*

OPERATING INCOME

 

$

6,424

 

 

$

7,578

 

 

$

14,002

 

 

$

10,672

 

 

$

2,878

 

 

$

13,550

 

 

(40%)

 

3%

 

(38%)

 

4%

OPERATING MARGIN %

 

21%

 

 

 

 

 

 

46%

 

 

36%

 

 

 

 

 

 

46%

 

 

*

 

(56) bp.

 

*

 

(45) bp.

INCOME TAX EFFECTS (5)

 

$

(497

)

 

$

(1,680

)

 

$

(2,177

)

 

$

871

 

 

$

(2,990

)

 

$

(2,119

)

 

*

 

3%

 

*

 

4%

NET INCOME

 

$

3,528

 

 

$

5,898

 

 

$

9,426

 

 

$

9,714

 

 

$

(112

)

 

$

9,602

 

 

(64%)

 

(2%)

 

(61%)

 

(1%)

DILUTED EARNINGS PER SHARE

 

$

1.26

 

 

 

 

 

 

$

3.37

 

 

$

3.19

 

 

 

 

 

 

$

3.15

 

 

(60%)

 

7%

 

(58%)

 

8%

DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING

 

 

2,800

 

 

 

 

 

 

2,800

 

 

 

3,049

 

 

 

 

 

 

3,049

 

 

(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:

 

 

 

Nine Months Ended

February 28, 2022

 

 

Nine Months Ended

February 28, 2021

 

 

 

GAAP

 

 

Adj.

 

 

Non-GAAP

 

 

GAAP

 

 

Adj.

 

 

Non-GAAP

 

Cloud services and license support

 

$

145

 

 

$

(145

)

 

$

 

 

$

99

 

 

$

(99

)

 

$

 

Hardware

 

 

11

 

 

 

(11

)

 

 

 

 

 

8

 

 

 

(8

)

 

 

 

Services

 

 

49

 

 

 

(49

)

 

 

 

 

 

41

 

 

 

(41

)

 

 

 

Sales and marketing

 

 

328

 

 

 

(328

)

 

 

 

 

 

233

 

 

 

(233

)

 

 

 

Research and development

 

 

1,188

 

 

 

(1,188

)

 

 

 

 

 

897

 

 

 

(897

)

 

 

 

General and administrative

 

 

179

 

 

 

(179

)

 

 

 

 

 

117

 

 

 

(117

)

 

 

 

Total stock-based compensation