Oracle has reported a single-digit drop in both sales and profit for its latest financial quarter.

Revenue of $6.9bn (£4.2bn) was down five per cent from the same period last year, while fourth-quarter net income of $1.9bn represented a seven per cent decline.

New software licence revenue – an important indicator of financial progress and future recurring income – fell 13 per cent to $2.7bn.

For the full year, sales rose four per cent to £23.3bn, with net income up one per cent to $5.6bn.

Oracle president Safra Catz said the software giant was badly affected by exchange rates and the results would have been far more positive if represented in constant currency.

“Adjusted for the substantial movement in the US dollar exchange rate this fiscal year, which is beyond our control, we grew non-GAAP earnings per share by 19 per cent for the year,” she said.

“That’s an amazing achievement given what has been happening in the global economy over the past 12 months.”

Oracle is in the process of acquiring hardware and Java supplier Sun Microsystems for $7.4bn.