What can the historical income statements and balance sheets tell you about the health and current condition of Oracle systems?

-7- UVA-F-1031 Exhibit 2 ORACLE SYSTEMS CORPORATION Balance Sheets, 1985-1990 (in thousands) Fiscal Year Ended Mar 31 1985 1986 1987 1989 1990 Quarter Aug. 31, 1990 Assets Current assets: Cash and cash equivalents Trade receivables Other current assets Total current assets $ 599 9,032 $12.524 26,554 2.393 41,471 $ 37,557 65,205 6,376 109,138 $ 48,610S 129,999 13,218 191,827 49,393 261,989 25.551 336,933 $ 49,828 468,071 51.358 569,257 S 50,198 394,648 76,428 521,274 9,962 4,491 14,152 Property, net Computer software develop. Other assets 26,896 4,818 2,940 47,554 6,920 3,267 94,455 13,942 14,879 171,945 33,396 12,649 1,010 203,887 41.707 12,245 1,805 $15.463 $57,428 $143.792 S249.568 $460,209 S787.247 $779.113 Total assets Liabilities and stockholders' equity Current liabilities: Notes payable Accounts payable Accrued expenses Customer advances Total current liabilities S 694 1,432 3,360 897 6,383 $ 3,164 4,835 11,301 2.993 22,293 $ 5,196 10,645 28,737 3.847 48,425 $ 6,507 23,502 62,627 2.547 102,183 S 23,334 51,582 88,014 15.403 178,333 S 42,501 64.922 134,028 42.121 283,572 $ 34,970 57,281 82,135 70,011 244,397 5,641 Long-term debt Deferred income taxes Stockholders' equity Total liabilities and stockholders' cquity 1 stockholders' equity 1,373 340 7.367 S15,463 843 9,025 3,686 8 2.656 $143.792 5,363 7,379 134,643 $249.568 28.651 $57,428 39,208 12,114 230,554 $460.209 94,065 22,025 387,585 S787,247 Oracle Systems Corporation 165,643 10,397 358,676 S779.113 29 28 UVA-F-1031 MBA Finance Exhibiti ORACLE SYSTEMS CORPORATION Income Statements, 1984-1990 (in thousands, except per-share amounts) Fiscal Year Ended. Ma3 90 Ulc. Buded dus3 Feb 28 1990 1989 1988 1987 1986 1985 1984 S689,898 280.946 970,844 $417,825 165,848 583,673 $245,561 5214,799 S205,435 76,678 282,113 S101,264 30.007 131.271 $44,657 10.726 55,383 $21,902 1.257 23,159 $12,282 433 12,715 Revenues Licenses Services Total revenues 21,685 6,431 14,542 65,651 18,661 9,949 8,602 124,148 51,241 25,708 171121 218,218 27,171 5,644 7,478 4.248 Operating expenses Sales and marketing Cost of services Research and development General and admin. Total operating expenses 465,074 160,426 88,291 67.258 781,049 272,812 100,987 52,570 34,344 460,713 20,615 230,187 174,673 2,009 1.673 10,113 3,886 1.989 20,417 44,541 102,864 49,203 5,342 (36,003) 7,516 189,795 (17.135) 63,895 122,960 (2,715) 28,407 (509) 10,842 (367) 2,742 (157) 1,084 2,602 (305) Operating income Other income (expense) 14.035 172,660 55,250 117,410 120,245 38,472 81,766 64,979 22.093 42,886 (14.796) (28,723) $29,826 27,898 12.273 15,623 10,475 4.579 5,896 2,585 1,034 2,297 908 1,389 Income before taxes Taxes Net income 1,551 $0.86 $0.32 $0.61 $0.12 $0.11 $0.12 30.11 136,826 135,066 132,950 125,028 Earnings per share 12,770 54,864 Number of shares outstanding 12,340 Source: Company annual reports. -7- UVA-F-1031 Exhibit 2 ORACLE SYSTEMS CORPORATION Balance Sheets, 1985-1990 (in thousands) Fiscal Year Ended Mar 31 1985 1986 1987 1989 1990 Quarter Aug. 31, 1990 Assets Current assets: Cash and cash equivalents Trade receivables Other current assets Total current assets $ 599 9,032 $12.524 26,554 2.393 41,471 $ 37,557 65,205 6,376 109,138 $ 48,610S 129,999 13,218 191,827 49,393 261,989 25.551 336,933 $ 49,828 468,071 51.358 569,257 S 50,198 394,648 76,428 521,274 9,962 4,491 14,152 Property, net Computer software develop. Other assets 26,896 4,818 2,940 47,554 6,920 3,267 94,455 13,942 14,879 171,945 33,396 12,649 1,010 203,887 41.707 12,245 1,805 $15.463 $57,428 $143.792 S249.568 $460,209 S787.247 $779.113 Total assets Liabilities and stockholders' equity Current liabilities: Notes payable Accounts payable Accrued expenses Customer advances Total current liabilities S 694 1,432 3,360 897 6,383 $ 3,164 4,835 11,301 2.993 22,293 $ 5,196 10,645 28,737 3.847 48,425 $ 6,507 23,502 62,627 2.547 102,183 S 23,334 51,582 88,014 15.403 178,333 S 42,501 64.922 134,028 42.121 283,572 $ 34,970 57,281 82,135 70,011 244,397 5,641 Long-term debt Deferred income taxes Stockholders' equity Total liabilities and stockholders' cquity 1 stockholders' equity 1,373 340 7.367 S15,463 843 9,025 3,686 8 2.656 $143.792 5,363 7,379 134,643 $249.568 28.651 $57,428 39,208 12,114 230,554 $460.209 94,065 22,025 387,585 S787,247 Oracle Systems Corporation 165,643 10,397 358,676 S779.113 29 28 UVA-F-1031 MBA Finance Exhibiti ORACLE SYSTEMS CORPORATION Income Statements, 1984-1990 (in thousands, except per-share amounts) Fiscal Year Ended. Ma3 90 Ulc. Buded dus3 Feb 28 1990 1989 1988 1987 1986 1985 1984 S689,898 280.946 970,844 $417,825 165,848 583,673 $245,561 5214,799 S205,435 76,678 282,113 S101,264 30.007 131.271 $44,657 10.726 55,383 $21,902 1.257 23,159 $12,282 433 12,715 Revenues Licenses Services Total revenues 21,685 6,431 14,542 65,651 18,661 9,949 8,602 124,148 51,241 25,708 171121 218,218 27,171 5,644 7,478 4.248 Operating expenses Sales and marketing Cost of services Research and development General and admin. Total operating expenses 465,074 160,426 88,291 67.258 781,049 272,812 100,987 52,570 34,344 460,713 20,615 230,187 174,673 2,009 1.673 10,113 3,886 1.989 20,417 44,541 102,864 49,203 5,342 (36,003) 7,516 189,795 (17.135) 63,895 122,960 (2,715) 28,407 (509) 10,842 (367) 2,742 (157) 1,084 2,602 (305) Operating income Other income (expense) 14.035 172,660 55,250 117,410 120,245 38,472 81,766 64,979 22.093 42,886 (14.796) (28,723) $29,826 27,898 12.273 15,623 10,475 4.579 5,896 2,585 1,034 2,297 908 1,389 Income before taxes Taxes Net income 1,551 $0.86 $0.32 $0.61 $0.12 $0.11 $0.12 30.11 136,826 135,066 132,950 125,028 Earnings per share 12,770 54,864 Number of shares outstanding 12,340 Source: Company annual reports