Oracle Corp.'s latest quarterly results Thursday underscore the critical role its software business plays despite its push to become a more well-rounded technology vendor by selling computer servers.

Oracle's net income increased 36 percent as new sales of business software were at the high end of its expectations. Revenue rose 13 percent.

But the company's stock fell as its hardware division stumbled.

Oracle bought fallen Silicon Valley star Sun Microsystems last year for $7.3 billion. That thrust Oracle into the computer server business.

The transformation has made CEO Larry Ellison one of the world's richest men. It also made an enemy of longtime partner Hewlett-Packard Co.

Ellison has repeatedly said that he wanted to focus Sun's business only on higher-profit deals. As a result, he warned, some lower-margin deals may fall off.

Now that Oracle has had Sun for a full year, the effect of Ellison's strategy is coming into focus.

Oracle said net income was $3.21 billion, or 62 cents per share, in the fiscal fourth quarter, which ended May 31. That compares with $2.36 billion, or 46 cents per share, a year ago.