Oracle has forecast quarterly profit below analysts' estimates, and said weak sales of its traditional database software licences were made worse by a strong US dollar that lowered the value of foreign revenue.
Shares of Oracle, often seen as a barometer for the technology sector, fell 6% in extended trading on Wall Street after its earnings report last night.
Oracle, like other established tech companies, is looking to move its business to the cloud-computing model, essentially providing services remotely via data centres rather than selling installed software.
The 38-year-old company has had some success with the cloud model, but is not moving fast enough to make up for declines in its traditional software sales.
Oracle, along with German rival SAP, has been losing market share in customer relationship management software in recent years to Salesforce.com, which only offers cloud-based services.
Because of lower software sales and the strong dollar, Oracle's net income fell to $2.76 billion, or 62 cents per share, in the fourth quarter ended May 31, from $3.65 billion, or 80 cents per share, a year earlier.
Revenue fell 5.4% to $10.71 billion - analysts had expected revenue of $10.92 billion, on average.
Sales from Oracle's cloud-computing software and platform service, an area keenly watched by investors, rose 29% to $416m.
For the current quarter, Oracle forecast earnings of 56 cents to 59 cents per share, below analysts' average estimate of 61 cents.
It estimated revenue growth of 5-8% over the same quarter a year ago, excluding any change in the value of the dollar.
