Oracle’s shrinking campus in Redwood City…

July 2, 2008

Oracle (ORCL) filed its 10K earlier today and one of the things that quickly jumped out at me (thanks to 10KWizard’s Compare Wizard feature) was how much its Redwood City headquarters had shrunk in the past year.

In last year’s 10K, the company said that its headquarters facility in Redwood City was 3.8 million square feet. But in the current K, that number fell by nearly 50% to 2 million square feet. In the same paragraph, the company notes that due to restructuring and M&A, the company has shed about 400,000 square feet in the past year, but even assuming that all of that space was in Redwood City, that still leaves about 1.4 million square feet unaccounted for.

The answer appears to be that most of that space has been filled outside the U.S., at least based on Oracle’s headcount, which showed 28,079 employees in the U.S. and 56,154 internationally. That’s about 10,000 more employees than in fiscal 2007, when there were 25,990 and 48,684 employees respectively.

Unfortunately, unlike some other companies, Oracle doesn’t provide breakdowns for either space or employees by country, so the only option is to piece different footnotes — commitments and contingencies, restructuring costs, and a few other things — in the filing together to get a reasonable picture.

So you have a shrinking headquarters, a rising headcount, especially overseas, and a big bump in the amount of non-headquarters space occupied: to 17.9 million square feet both in the U.S. and overseas, compared with 13.5 million last year (presumably a good chunk of that was from the BEA Systems deal). And rent expenses have also jumped sharply — to $276 million last year, compared with $224 million the year before, though income from subleases has also jumped sharply to $57 million from $32 million a year earlier.

Still, it shouldn’t take this kind of detective work to get the type of basic details that IBM (IBM), an Oracle competitor, provides in a much more digestible way.

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