Oracle Corporation has reported a 17% increase in its net income to $2.19 billion for the second quarter ended November 30 due to higher sales of new software licenses,  the news reports said.

The technology major reported a net income of of $1.87 billion in the year-ago period. The total revenues surged by 2% to $8.8 billion in the second quarter of the current fiscal.

The technology firm’s earnings fell short of market expectations for the first time in a decade on account of slower demand for databases, applications and computer servers. Meanwhile, Oracle Corp’s stock fell over 10% on below-expected results, the reports said.

The company’s revenues from new software licenses rose by 2% to $2 billion.The revenues from hardware slipped 14% to $953 million. 

According to Oracle’s CEO Larry Ellison, “Sale of our engineered systems accelerated in Q2.” The company has also expanded its worldwide sales capacity by adding over 1,700 sales professionals in the first half ended November.

The technology company expects its adjusted earnings to range from 55 cents to 58 cents a share in the third quarter.

Oracle Corporation is an American multinational computer technology corporation that specializes in marketing and developing hardware systems and enterprise software products particularly database management systems.