July 2003 Model Of Oracle's Projection Of Decline In R&D, S&M, G&A Costs For PeopleSoft And J.D. Edwards Combined

The total R&D, S&M, and G&A costs are shown as follows: FY03 - 1,450, FY05E - 273 (81% decline), continuing with a slight decline in FY06E and FY07E, to 224 (85% decline) in FY08E. Oracle alleges that these costs declines are efficiencies: $1.18 billion = $1.45 billion - $0.27 billion.

S&M costs are show as follows: FY03 - 769, FY05E - 37 (83%), continuing with a slight decline in FY06E and FY07E, to 29 (87%) in FY08E.

F&D numbers are not readable, but also show a decline.

G&A costs are show as follows: FY03 - 214, FY05E - 34 (96%), continuing with a slight decline in FY06E and FY07E, to 24 (97%) in FY08E.

Notes: Charts exclude FY04 since the July 2003 Model only provides partial year forecast for FY04.

Source: July 2003 Model (Plaintiff's Exhibit 3004).

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