World's second-largest software producer, Oracle Corp. reported a fall of 7 per cent in sales to $5.1 billion for the quarter ended August 31, against analysts' projections of $5.25 billion, though its profit met Wall Street forecasts.

Oracle said it pocketed net income worth $1.1 billion for the quarter through August, representing a gain of 22 cents a share. The company had posted $1.07 billion for the same quarter previous year.

Excluding items, California-based Oracle would have earned $1.5 billion or 30 cents a shares.

New software license sales dropped 17 per cent to settle at $1 billion. On the other hand, revenue from software license updates plus product support jumped 6 per cent to settle at $3.1 billion.

Speaking on the topic, Oracle's president, Safra Catz, said, "Our operating model continues to drive earnings for our stockholders."

The company, which has plans to buy Sun Microsystems, had declared a dividend of 5 cents a shares.

In the extended trading, shares in Oracle dropped to $21.53, losing 2.7 per cent.