Oracle Corporation et al v. SAP AG et al

Filing 854

Declaration of Stephen K. Clarke in Support of 851 Memorandum in Opposition, To Plaintiffs' Motion No. 1 To Exclude Expert Testimony Of Stephen K. Clarke [REDACTED] filed by SAP AG, SAP America Inc, Tomorrownow Inc. (Attachments: # 1 Exhibit 1, # 2 Exhibit 2, # 3 Exhibit 3, # 4 Exhibit 4, # 5 Exhibit 5, # 6 Exhibit 6, # 7 Exhibit 7, # 8 Exhibit 8, # 9 Exhibit 9, # 10 Exhibit 10, # 11 Exhibit 11, # 12 Exhibit 12, # 13 Exhibit 13, # 14 Exhibit 14, # 15 Exhibit 15, # 16 Exhibit 16, # 17 Exhibit 17, # 18 Exhibit 18, # 19 Exhibit 19, # 20 Exhibit 20)(Related document(s) 851 ) (McDonell, Jason) (Filed on 9/9/2010) Modified on 9/10/2010 (vlk, COURT STAFF).

Oracle Corporation et al v. SAP AG et al

Doc. 854 Att. 18

EXHIBIT 18

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM lO-K
~

ANNUAL R E P O R T PURSUANT T O S E C T I O N 13 O R 1 5 ( d ) O F T H E SECURITIES EXCHANGE ACT O F 1934
F o r the fiscal year ended May 31, 2007

OR

o T R A N S I T I O N R E P O R T PURSUANT T O S E C T I O N 1 3 O R
T H E S E C U R I T I E S EXCHANGE ACT O F 1934
Commission file n u m b e r : 000-51788

15(d) O F

Oracle Corporation
( E x a c t n a m e o f r e g i s t r a n t as s p e c i f i e d i n i t s c h a r t e r )

Delaware
(State o r o t h e r j u r i s d i c t i o n o f i n c o r p o r a t i o n o r organization)

54-2185193
(I.R.S. e m p l o y e r identification no.)

.$'

500 Oracle P a r k w a y Redwood City, California 94065
(Address o f principal executive offices, including zip code)

,~wV'\

Exhibit

-'2 \ J '.

[phone]
( R e g i s t r a n t ' s t e l e p h o n e n u m b e r , i n c l u d i n g a r e a code)

HO~ ~it~~n . CSR

S e c u r i t i e s r e g i s t e r e d p u r s u a n t to S e c t i o n 1 2 ( b ) o f t h e A c t :
T i t l e o f E a c h Class Name o f E a c h EXchange on Which Registered

Common Stock, par value $0.01 per share P r e f e r r e d Stock P u r c h a s e Rights

The NASDAQ Stock Market LLC The NASDAQ Stock Market LLC

Securities registered p u r s u a n t to Section 12(g) o f the Act: None
Indicate by check mark i f the registrant is a well-known seasoned issuer, as defined in Rule 405 o f the Securities A c t YES ~ NO 0 Indicate by check mark i f the registrant is not required to file reports pursuant to Section 13 or Section 15(d) o f the A c t YES 0 NO I8J Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) o f the Securities Exchange Act o f 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such NO 0 reports), and (2) has been subject to such tiling requirements for the past 90 days, YES ~ Indicate by check mark i f disclosure o f delinquent filers pursuant to Item 405 o f Regulation S-K is not contained herein and will not be contained, to the best o f registrant's knowledge, in definitive proxy o r information statements incorporated by reference in Part III o f this Form 10-K o r any amendment to this Form lOoK. ~ Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See detinition o f "accelerated filer and large accelerated tiler" in Rule 12b-2 o f the Exchange A c t L a r g e A c c e l e r a t e d filer
~

A c c e l e r a t e d filer 0

N o n - a c c e l e r a t e d filer 0

Indicate by check mark whether the registrant is a shell company (as detined in Rule 12b-2 o f the Exchange Act). YES 0 NO ~ The aggregate market value o f the voting stock held by non-affiliates o f the registrant was $74,136,594,087 based on the number o f sharcs held by non-affiliates o f the registrant as o f May 31, 2007, and based on the closing sale price o f common stock as reported by the NASDAQ Global Select Market on November 30, 2006, which is the last business day o f the registrant's most recently completed second tiscal quarter. This calculation does not r e n e c t a determination that persons are affiliates for any o t h e r purposes. Number o f shares o f common stock outstanding as o f June 25, 2007: 5,113,035,975

Documents I n c o r p o r a t e d by Reference:
Part I I I - P o r t i o n s o f the registrant's definitive proxy statement to be issued in conjunction with registrant's annual stockholders' meeting to be held on November 2, 2007.

ORACLE CORPORATION NOTES T O C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S - ( C o n t i n u e d ) May 31, 2007
T h e following table p r e s e n t s a s u m m a r y o f o u r b u s i n e s s e s a n d o p e r a t i n g s e g m e n t s :
( i n millions)

2007

Year Ended May 31, 2006 2005

N e w software licenses: Revenues(l) S a l e s and d i s t r i b u t i o n e x p e n s e s
Margin(~)

--$ 4,082 2,055 $ 2,027

. .

$ 5,874 3,326

$ 4,897 2,638 $ 2,259 $ 7,027 673 $ 6,354

. $ 2,548 . . . . . . . . . . . .
.

S o f t w a r e l i c e n s e u p d a t e s a n d p r o d u c t support: Revenues'l) Cost o f services Margin(2) Total software business: Revenues(l) Expenses Margin(2) Consulting: Revenues(1) C o s t o f services Margin(2) O n Demand: Revenues(l) C o s t o f services
Margin(~)

$ 8,541 788

$ 7,753
$ 14,415 4,114

--$ 5,081 $ 9,732 2,624

$ 5,650 569

$ 11,924 3,31 I $ 8.613 $ 2,113 1,787
$
$ $ $

$ 10,301 $ 2,851 2,384
$ $

$ 7,108
$ 1.796 ~ $ 325
$ $

467 555 529 26 387 272 115

326 398 372 26 336 235 101

$

--33 284 2 - - 15 $ 69
$ $ 2,387

307 274

Education: (I) Revenues C o s t o f services
Margin(~)

.$ . .$

$

Total services business: Revenues(l) Cost o f services Margin(2) Totals: Revenues(IJ Expenses
Margin(~)

. $ 3,793 3,185 . .$ 608 . $ 18,208 7,299 . . $ 10,909

$ 2,847 2,394 $

~
$ 4- - 27

453

$ 14,771 5,705

$12,119 4,584
$ 7,535

$ 9,066

(I) Operating segment revenues differ from the external reporting classifications due to certain software license products that are classified as service revenues for management reporting purposes. Additionally, software license updates and product support revenues for management reporting include $212 million, $391 million and $320 million o f revenues that we did not recognize in the accompanying consolidated statements o f operations for the years ended M a y 31, 2007, 2006 and 2005, respectively. See Note 6 for an explanation o f these adjustments and the following table for a reconciliation o f operating segment revenues to total revenues.
(2)

The margins reported reflect only the direct controllable costs and expenses o f each line o f business and d o not represent the actual margins for each operating segment because they d o not contain an allocation o f p r o d u c t d e v e l o p m e n t , inforn1ation t e c h n o l o g y , m a r k e t i n g a n d p a r t n e r p r o g r a m s , a n d c o r p o r a t e a n d g e n e r a l a n d administrative expenses incurred in support o f the lines o f business. Additionally, the margins do not ret1ect t h e a m o r t i z a t i o n o f i n t a n g i b l e a s s e t s , r e s t r u c t u r i n g c o s t s , a c q u i s i t i o n r e l a t e d costs o r s t o c k - b a s e d c o m p e n s a t i o n . 103