Oracle sales down as businesses tighten belts

SAN FRANCISCO: Business software maker Oracle reported a 5 percent decline in quarterly revenue Wednesday as businesses held off on buying new software.

The Silicon Valley company said its sales dropped to $5.1 billion, but the company managed to increase profits by 8 percent to $1.1 billion, compared to $1.07 billion in the year-ago quarter.

The company said that sales of new software sank 17 percent to $1 billion, but were offset by a rise in software updates and product-support revenues of 6 percent to $3.1 billion.

Oracle President Safra Catz said the company was able to increase profit despite weak sales by "substantially" improving its operating margins.

"Our operating model continues to drive earnings for our stockholders," she said in a statement.