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Oracle Corp (ORCL) SEC Filing 8-K Material Event for the period ending Monday, June 13, 2022

Oracle Corp

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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 Fourth Quarter and Fiscal Full Year Financial Results

 

•

Q4 GAAP Earnings per Share $1.16, Non-GAAP Earnings per Share $1.54

•

Total Q4 Revenue $11.8 billion, up 5% in USD, up 10% in constant currency

•

Total Q4 Cloud Revenue (IaaS plus SaaS) $2.9 billion, up 19% in USD, up 22% in constant currency

•

Infrastructure Cloud Revenue (IaaS) up 36% in USD, up 39% in constant currency

•

Fusion ERP Cloud Revenue (SaaS) up 20% in USD, up 23% in constant currency

•

NetSuite ERP Cloud Revenue (SaaS) up 27% in USD, up 30% in constant currency

AUSTIN, Texas, June 13, 2022 -- Oracle Corporation (NYSE: ORCL) today announced fiscal 2022 Q4 results. Total quarterly revenues were up 5% year-over-year in USD and up 10% in constant currency to $11.8 billion. Cloud services and license support revenues were up 3% in USD and up 7% in constant currency to $7.6 billion. Cloud license and on-premise license revenues were up 18% in USD and up 25% in constant currency to $2.5 billion.

Q4 GAAP operating income was $4.5 billion, down 1% in USD and up 6% in constant currency. Non-GAAP operating income was $5.6 billion, up 3% in USD and up 8% in constant currency. GAAP operating margin was 38%, and non-GAAP operating margin was 47%. GAAP net income was $3.2 billion, and non-GAAP net income was $4.2 billion. Q4 GAAP earnings per share was $1.16 while non-GAAP earnings per share was $1.54.

Short-term deferred revenues were $8.4 billion. Operating cash flow was $9.5 billion during the trailing twelve months.

Fiscal year 2022 total revenues were up 5% in USD and up 7% in constant currency to $42.4 billion. Cloud services and license support revenues were up 5% in USD and 6% in constant currency to $30.2 billion. Cloud license and on-premise license revenues were up 9% in USD and 12% in constant currency to $5.9 billion.

Fiscal year 2022 GAAP operating income was $10.9 billion, and GAAP operating margin was 26%. Non-GAAP operating income was $19.6 billion, and non-GAAP operating margin was 46%. GAAP net income was $6.7 billion, while non-GAAP net income was $13.7 billion. GAAP earnings per share was $2.41, while non-GAAP earnings per share was $4.90.

“We continued to improve our top line results again this quarter with total revenue growing 10% in constant currency,” said Oracle CEO, Safra Catz. “These consistent increases in our quarterly revenue growth rate typically have been driven by our market leading Fusion and NetSuite cloud applications. But this Q4, we also experienced a major increase in demand in our infrastructure cloud business—which grew 39% in constant currency. We believe that this revenue growth spike indicates that our infrastructure business has now entered a hyper-growth phase. Couple a high growth rate in our cloud infrastructure business with the newly acquired Cerner applications business—and Oracle finds itself in position to deliver stellar revenue growth over the next several quarters.”

“Cerner and Oracle together have all the technologies required to provide healthcare professionals with better information—and better information will fundamentally transform healthcare,” said Oracle Chairman and CTO, Larry Ellison. “Better information will lead to better patient outcomes, better public health policy, lower overall healthcare costs, and a better quality of life—not just in rich countries—but throughout the world. During the pandemic, an award-winning Oracle cloud system called v-safeSM collected over 150 million patient records in the United States. An Oracle cloud system also managed vaccine programs in Ghana, Tasmania and dozens of other states and countries. We partnered with the University of Oxford to develop and deploy the Global Pathogen Analysis System (GPAS) that identified variants of the COVID-19 virus wherever and whenever they first appeared. A few weeks ago, we turned on a system to help researchers study a promising new HIV vaccine. There are so many opportunities to use information technology to improve healthcare and save lives. We made a good beginning during the pandemic—and we fully comprehend the importance of what remains to be done.”

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 July 12, 2022, with a payment date of July 26, 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 future revenue growth, the impact of the Cerner acquisition and our plans to manage a promising new HIV vaccine, 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) Our success depends upon our ability to develop new products and services, integrate acquired products and services and enhance our existing products and services. (2) Our cloud strategy, including our Oracle Cloud Software-as-a-Service and Oracle Cloud Infrastructure offerings, may adversely affect our revenues and profitability. (3) We might experience significant coding, manufacturing or configuration errors in our cloud, license and hardware offerings. (4) Acquisitions present many risks and we may not achieve the financial and strategic goals that were contemplated at the time of the transaction. (5) 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. (6) 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. (7) 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. (8) 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. (9) If we are unable to compete effectively, the results of operations and prospects for our business could be harmed. (10) Our international sales and operations subject us to additional risks that can adversely affect our operating results. (11) 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 June 13, 2022. Oracle undertakes no duty to update any statement in light of new information or future events.

 

 

 

ORACLE CORPORATION

Q4 FISCAL 2022 FINANCIAL RESULTS

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

($ in millions, except per share data)

 

 

 

Three Months Ended May 31,

 

% Increase

 

% Increase

(Decrease)

 

 

2022

 

 

% of

Revenues

 

2021

 

 

% of

Revenues

 

(Decrease)

in US $

 

in Constant

Currency (1)

REVENUES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cloud services and license support

 

$

7,612

 

 

64%

 

$

7,389

 

 

66%

 

3%

 

7%

Cloud license and on-premise license

 

 

2,539

 

 

22%

 

 

2,144

 

 

19%

 

18%

 

25%

Hardware

 

 

856

 

 

7%

 

 

882

 

 

8%

 

(3%)

 

2%

Services

 

 

833

 

 

7%

 

 

812

 

 

7%

 

3%

 

7%

Total revenues

 

 

11,840

 

 

100%

 

 

11,227

 

 

100%

 

5%

 

10%

OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cloud services and license support

 

 

1,435

 

 

12%

 

 

1,214

 

 

11%

 

18%

 

21%

Hardware

 

 

254

 

 

2%

 

 

253

 

 

2%

 

1%

 

6%

Services

 

 

707

 

 

6%

 

 

655

 

 

6%

 

8%

 

13%

Sales and marketing

 

 

2,238

 

 

19%

 

 

2,077

 

 

19%

 

8%

 

11%

Research and development

 

 

1,965

 

 

17%

 

 

1,715

 

 

15%

 

15%

 

16%

General and administrative

 

 

364

 

 

3%

 

 

306

 

 

3%

 

19%

 

21%

Amortization of intangible assets

 

 

268

 

 

2%

 

 

342

 

 

3%

 

(22%)

 

(21%)

Acquisition related and other

 

 

6

 

 

0%

 

 

30

 

 

0%

 

(82%)

 

(82%)

Restructuring

 

 

100

 

 

1%

 

 

94

 

 

1%

 

7%

 

7%

Total operating expenses

 

 

7,337

 

 

62%

 

 

6,686

 

 

60%

 

10%

 

12%

OPERATING INCOME

 

 

4,503

 

 

38%

 

 

4,541

 

 

40%

 

(1%)

 

6%

Interest expense

 

 

(704

)

 

(6%)

 

 

(697

)

 

(6%)

 

1%

 

1%

Non-operating (expenses) income, net

 

 

(175

)

 

(1%)

 

 

313

 

 

3%

 

*

 

*

INCOME BEFORE INCOME TAXES

 

 

3,624

 

 

31%

 

 

4,157

 

 

37%

 

(13%)

 

(6%)

Provision for income taxes

 

 

(435

)

 

(4%)

 

 

(124

)

 

(1%)

 

251%

 

280%

NET INCOME

 

$

3,189

 

 

27%

 

$

4,033

 

 

36%

 

(21%)

 

(14%)

EARNINGS PER SHARE:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

1.20

 

 

 

 

$

1.42

 

 

 

 

 

 

 

Diluted

 

$

1.16

 

 

 

 

$

1.37

 

 

 

 

 

 

 

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

2,667

 

 

 

 

 

2,847

 

 

 

 

 

 

 

Diluted

 

 

2,742

 

 

 

 

 

2,943

 

 

 

 

 

 

 

 

(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 May 31, 2022 compared with the corresponding prior year period decreased our total revenues by 5 percentage points, total operating expenses by 2 percentage points and operating income by 7 percentage points.

*

Not meaningful

1

ORACLE CORPORATION

Q4 FISCAL 2022 FINANCIAL RESULTS

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

($ in millions, except per share data)

 

 

 

Three Months Ended May 31,

 

 

% 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

 

$

11,840

 

 

$

—

 

 

$

11,840

 

 

$

11,227

 

 

$

—

 

 

$

11,227

 

 

5%

 

5%

 

10%

 

10%

TOTAL OPERATING EXPENSES

 

$

7,337

 

 

$

(1,087

)

 

$

6,250

 

 

$

6,686

 

 

$

(908

)

 

$

5,778

 

 

10%

 

8%

 

12%

 

11%

Stock-based compensation (3)

 

 

713

 

 

 

(713

)

 

 

—

 

 

 

442

 

 

 

(442

)

 

 

—

 

 

61%

 

*

 

61%

 

*

Amortization of intangible assets (4)

 

 

268

 

 

 

(268

)

 

 

—

 

 

 

342

 

 

 

(342

)

 

 

—

 

 

(22%)

 

*

 

(21%)

 

*

Acquisition related and other

 

 

6

 

 

 

(6

)

 

 

—

 

 

 

30

 

 

 

(30

)

 

 

—

 

 

(82%)

 

*

 

(82%)

 

*

Restructuring

 

 

100

 

 

 

(100

)

 

 

—

 

 

 

94

 

 

 

(94

)

 

 

—

 

 

7%

 

*

 

7%

 

*

OPERATING INCOME

 

$

4,503

 

 

$

1,087

 

 

$

5,590

 

 

$

4,541

 

 

$

908

 

 

$

5,449

 

 

(1%)

 

3%

 

6%

 

8%

OPERATING MARGIN %

 

38%

 

 

 

 

 

 

47%

 

 

40%

 

 

 

 

 

 

49%

 

 

(242) bp.

 

(132) bp.

 

(150) bp.

 

(73) bp.

INCOME TAX EFFECTS (5)

 

$

(435

)

 

$

(41

)

 

$

(476

)

 

$

(124

)

 

$

(417

)

 

$

(541

)

 

251%

 

(12%)

 

280%

 

(6%)

NET INCOME

 

$

3,189

 

 

$

1,046

 

 

$

4,235

 

 

$

4,033

 

 

$

491

 

 

$

4,524

 

 

(21%)

 

(6%)

 

(14%)

 

0%

DILUTED EARNINGS PER SHARE

 

$

1.16

 

 

 

 

 

 

$

1.54

 

 

$

1.37

 

 

 

 

 

 

$

1.54

 

 

(15%)

 

0%

 

(8%)

 

7%

DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING

 

 

2,742

 

 

 

—

 

 

 

2,742

 

 

 

2,943

 

 

 

—

 

 

 

2,943

 

 

(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, 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

May 31, 2022

 

 

Three Months Ended

May 31, 2021

 

 

 

GAAP

 

 

Adj.

 

 

Non-GAAP

 

 

GAAP

 

 

Adj.

 

 

Non-GAAP

 

Cloud services and license support

 

$

60

 

 

$

(60

)

 

$

—

 

 

$

35

 

 

$

(35

)

 

$

—

 

Hardware

 

 

4

 

 

 

(4

)

 

 

—

 

 

 

3

 

 

 

(3

)

 

 

—

 

Services

 

 

18

 

 

 

(18

)

 

 

—

 

 

 

14

 

 

 

(14

)

 

 

—

 

Sales and marketing

 

 

120

 

 

 

(120

)

 

 

—

 

 

 

80

 

 

 

(80

)

 

 

—

 

Research and development

 

 

445

 

 

 

(445

)

 

 

—

 

 

 

291

 

 

 

(291

)

 

 

—

 

General and administrative

 

 

66

 

 

 

(66

)

 

 

—

 

 

 

19

 

 

 

(19

)

 

 

—

 

Total stock-based compensation

 

$

713

 

 

$

(713

)

 

$

—

 

 

$

442

 

 

$

(442

)

 

$

—

 

 

(4)

Estimated future annual amortization expense related to intangible assets as of May 31, 2022 was as follows:

 

Fiscal 2023

 

$

750

 

Fiscal 2024

 

 

508

 

Fiscal 2025

 

 

148

 

Fiscal 2026

 

 

24

 

Fiscal 2027

 

 

6

 

Thereafter

 

 

4

 

Total intangible assets, net

 

$

1,440

 

 

(5)

Income tax effects were calculated reflecting an effective GAAP tax rate of 12.0% and 3.0% in the fourth quarter of fiscal 2022 and 2021, respectively, and an effective non-GAAP tax rate of 10.1% and 10.7% in the fourth quarter of fiscal 2022 and 2021, respectively. The difference in our GAAP and non-GAAP tax rates in each of the fourth quarter of fiscal 2022 and 2021 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 previously recorded due to the partial realignment of our legal entity structure.

*

Not meaningful

2

ORACLE CORPORATION

FISCAL 2022 YEAR TO DATE FINANCIAL RESULTS

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

($ in millions, except per share data)

 

 

 

Year Ended May 31,

 

% Increase

 

% Increase

(Decrease)

 

 

2022

 

 

% of

Revenues

 

2021

 

 

% of

Revenues

 

(Decrease)

in US $

 

in Constant

Currency (1)

REVENUES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cloud services and license support

 

$

30,174

 

 

71%

 

$

28,700

 

 

71%

 

5%

 

6%

Cloud license and on-premise license

 

 

5,878

 

 

14%

 

 

5,399

 

 

13%

 

9%

 

12%

Hardware

 

 

3,183

 

 

7%

 

 

3,359

 

 

8%

 

(5%)

 

(3%)

Services

 

 

3,205

 

 

8%

 

 

3,021

 

 

8%

 

6%

 

8%

Total revenues

 

 

42,440

 

 

100%

 

 

40,479

 

 

100%

 

5%

 

7%

OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cloud services and license support

 

 

5,213

 

 

12%

 

 

4,353

 

 

11%

 

20%

 

21%

Hardware

 

 

972

 

 

2%

 

 

972

 

 

2%

 

0%

 

2%

Services

 

 

2,692

 

 

6%

 

 

2,530

 

 

6%

 

6%

 

8%

Sales and marketing

 

 

8,047

 

 

19%

 

 

7,682

 

 

19%

 

5%

 

6%

Research and development

 

 

7,219

 

 

17%

 

 

6,527

 

 

16%

 

11%

 

11%

General and administrative

 

 

1,317

 

 

3%

 

 

1,254

 

 

3%

 

5%

 

6%

Amortization of intangible assets

 

 

1,150

 

 

3%

 

 

1,379

 

 

4%

 

(17%)

 

(17%)

Acquisition related and other (2)

 

 

4,713

 

 

11%

 

 

138

 

 

0%

 

*

 

*

Restructuring

 

 

191

 

 

1%

 

 

431

 

 

1%

 

(56%)

 

(56%)

Total operating expenses

 

 

31,514

 

 

74%

 

 

25,266

 

 

62%

 

25%

 

26%

OPERATING INCOME

 

 

10,926

 

 

26%

 

 

15,213

 

 

38%

 

(28%)

 

(25%)

Interest expense

 

 

(2,755

)

 

(7%)

 

 

(2,496

)

 

(6%)

 

10%

 

10%

Non-operating (expenses) income, net

 

 

(522

)

 

(1%)

 

 

282

 

 

0%

 

*

 

*

INCOME BEFORE INCOME TAXES

 

 

7,649

 

 

18%

 

 

12,999

 

 

32%

 

(41%)

 

(37%)

(Provision for) benefit from income taxes

 

 

(932

)

 

(2%)

 

 

747

 

 

2%

 

*

 

*

NET INCOME

 

$

6,717

 

 

16%

 

$

13,746

 

 

34%

 

(51%)

 

(48%)

EARNINGS PER SHARE:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

2.49

 

 

 

 

$

4.67

 

 

 

 

 

 

 

Diluted

 

$

2.41

 

 

 

 

$

4.55

 

 

 

 

 

 

 

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

2,700

 

 

 

 

 

2,945

 

 

 

 

 

 

 

Diluted

 

 

2,786

 

 

 

 

 

3,022

 

 

 

 

 

 

 

 

(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 year ended May 31, 2022 compared with the corresponding prior year period decreased our total revenues by 2 percentage points, total operating expenses by 1 percentage point and operating income by 3 percentage points.

(2)

Acquisition related and other for fiscal 2022 included the impact of litigation related charges totaling $4.7 billion.

*

Not meaningful

3

ORACLE CORPORATION

FISCAL 2022 YEAR TO DATE FINANCIAL RESULTS

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

($ in millions, except per share data)

 

 

 

Year Ended May 31,

 

 

% 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

 

$

42,440

 

 

$

—

 

 

$

42,440

 

 

$

40,479

 

 

$

2

 

 

$

40,481

 

 

5%

 

5%

 

7%

 

7%

Cloud services and license support

 

 

30,174

 

 

 

—

 

 

 

30,174

 

 

 

28,700

 

 

 

2

 

 

 

28,702

 

 

5%

 

5%

 

6%

 

6%

TOTAL OPERATING EXPENSES

 

$

31,514

 

 

$

(8,667

)

 

$

22,847

 

 

$

25,266

 

 

$

(3,785

)

 

$

21,481

 

 

25%

 

6%

 

26%

 

8%

Stock-based compensation (3)

 

 

2,613

 

 

 

(2,613

)

 

 

—

 

 

 

1,837

 

 

 

(1,837

)

 

 

—

 

 

42%

 

*

 

42%

 

*

Amortization of intangible assets (4)

 

 

1,150

 

 

 

(1,150

)

 

 

—

 

 

 

1,379

 

 

 

(1,379

)

 

 

—

 

 

(17%)

 

*

 

(17%)

 

*

Acquisition related and other

 

 

4,713

 

 

 

(4,713

)

 

 

—

 

 

 

138

 

 

 

(138

)

 

 

—

 

 

*

 

*

 

*

 

*

Restructuring

 

 

191

 

 

 

(191

)

 

 

—

 

 

 

431

 

 

 

(431

)

 

 

—

 

 

(56%)

 

*

 

(56%)

 

*

OPERATING INCOME

 

$

10,926

 

 

$

8,667

 

 

$

19,593

 

 

$

15,213

 

 

$

3,787

 

 

$

19,000

 

 

(28%)

 

3%

 

(25%)

 

5%

OPERATING MARGIN %

 

26%

 

 

 

 

 

 

46%

 

 

38%

 

 

 

 

 

 

47%

 

 

*

 

(77) bp.

 

*

 

(51) bp.

INCOME TAX EFFECTS (5)

 

$

(932

)

 

$

(1,723

)

 

$

(2,655

)

 

$

747

 

 

$

(3,408

)

 

$

(2,661

)

 

*

 

0%

 

*

 

2%

NET INCOME

 

$

6,717

 

 

$

6,944

 

 

$

13,661

 

 

$

13,746

 

 

$

379

 

 

$

14,125

 

 

(51%)

 

(3%)

 

(48%)

 

(1%)

DILUTED EARNINGS PER SHARE

 

$

2.41

 

 

 

 

 

 

$

4.90

 

 

$

4.55

 

 

 

 

 

 

$

4.67

 

 

(47%)

 

5%

 

(43%)

 

8%

DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING

 

 

2,786

 

 

 

—

 

 

 

2,786

 

 

 

3,022

 

 

 

—

 

 

 

3,022

 

 

(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:

 

 

 

Year Ended

May 31, 2022

 

 

Year Ended

May 31, 2021

 

 

 

GAAP

 

 

Adj.

 

 

Non-GAAP

 

 

GAAP

 

 

Adj.

 

 

Non-GAAP

 

Cloud services and license support

 

$

205

 

 

$

(205

)

 

$

—

 

 

$

134

 

 

$

(134

)

 

$

—

 

Hardware

 

 

15

 

 

 

(15

)

 

 

—

 

 

 

11

 

 

 

(11

)

 

 

—

 

Services

 

 

67

 

 

 

(67

)

 

 

—

 

 

 

55

 

 

 

(55

)

 

 

—

 

Sales and marketing

 

 

448

 

 

 

(448

)

 

 

—

 

 

 

313

 

 

 

(313

)

 

 

—

 

Research and development

 

 

1,633

 

 

 

(1,633

)

 

 

—

 

 

 

1,188

 

 

 

(1,188

)

 

 

—

 

General and administrative

 

 

245

 

 

 

(245

)

 

 

—

 

 

 

136

 

 

 

(136

)

 

 

—

 

Total stock-based compensation

 

$

2,613

 

 

$

(2,613

)

 

$

—

 

 

$

1,837

 

 

$

(1,837

)

 

$

—

 

 

(4)

Estimated future annual amortization expense related to intangible assets as of May 31, 2022 was as follows:

 

Fiscal 2023

 

$