Oracle Corporation (
ORCL)
Q2 2010 Earnings Call Transcript
December 17, 2009 5:00 p.m. ET
Executives
Ken Bond – Vice President of Investor Relations
Jeff Epstein – Executive Vice President and Chief Financial Officer
Safra A. Catz - President
Charles E. Phillips - President
Lawrence J. Ellison – Chief Executive Officer
Analysts
Adam Holt - Morgan Stanley
Sarah Friar - Goldman Sachs
John DiFucci - JPMorgan
Heather Bellini - ISI Group
Israel Hernandez - Barclays Capital
Brent Thill - UBS
Kash Rangan - Merrill Lynch
Presentation
Operator
Good day, everyone, and welcome to today’s Oracle Corporation quarterly conference call. Today’s conference is being recorded. At this time, I would like to introduce Ken Bond, Vice President of Investor Relations, Oracle. Please go ahead, sir.
Ken Bond
Thank you, (Darren). Good afternoon, everyone, and welcome to Oracle’s second quarter fiscal year 2010 earnings conference call. I’m Ken Bond, Vice President of Investor Relations and with us on the call today are Chief Executive Officer, Larry Ellison; President, Safra Catz; President, Charles Phillips and our Chief Financial Officer, Jeff Epstein.
As a reminder, today’s discussion will include forward-looking statements, including predictions, expectations, estimates or other information that might be considered forward looking. While these forward-looking statements represent our current judgment on what the future holds, these statements are also subject to risks and uncertainties that may cause actual results to differ materially from statements being made today.
Throughout today’s discussion, we will attempt to present some important factors relating to our business, which may potentially affect these forward-looking statements. We would encourage you to review our most-recent reports on Form 10-K and 10-Q and any applicable amendments for a complete discussion of these factors and other risks that may affect our future results or the market price of our stock.
As a result, we caution you against placing undue reliance on these forward-looking statements, which reflect our opinion only as of today. As a reminder, we are not obligating ourselves to revise or publicly release the results of any revision of these forward-looking statements in light of new information or future events.
A copy of the press release and financial tables, which include a GAAP to non-GAAP reconciliation and other supplemental financial information can be viewed and downloaded from our website at www.oracle.com/investor.
We’ll begin with a few prepared remarks before taking questions from the audience. In today’s conference call, we will only be discussing Oracle’s Q2 fiscal year 2010 results. With that, I’d like to turn the call over to Jeff Epstein for his opening remarks. Jeff.
Jeff Epstein
Thank you, Ken. Good afternoon, everyone and thank you for joining us. I will review our non-GAAP financial results, focusing on constant currency growth rate unless otherwise stated.
First, a note about foreign exchange rate movements. In September, we told you that using then-current exchange rates would increase our Q2 revenue growth by four points compared to constant currency.
During the second quarter, the U.S. dollar weakened compared to last Q2, increasing our international revenues, expenses and profits when measured in U.S. dollars. As a result, currency movements increased new license revenues by 7%, total revenues by 5%, net income by 7% and earnings per share by 7% or $0.02 per share compared to Q2 of last year.
Now, let’s review the income statement. In the second quarter, our new software license revenues were $1.7 billion, down 5% in constant currency and up 2% in U.S. dollars. The Americas grew 1%, EMEA was down 11% and Asia declined 8%.
