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Overall, hardware revenue fell by 4.9percentto to $9.2 billion.
In its third fiscal quarter, Oracle had hardware revenue of $671 million, down 23 percent.
Sales climbed to $29 billion as hardware revenue got a boost from the company's newest mainframe.
When services are added in, the company's hardware revenue was flat, at $1.8 billion.
Hardware revenue plummeted 25percentto to $6.41 billion, compared with the first quarter of 2001.
He assured analysts that hardware revenue would start increasing in the final quarter of Oracle's fiscal year, the period spanning March through May.
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Total hardware revenues fell 1percentt from a year ago, to $6.6 billion (or 6percentt without currency gains).
Over all, hardware revenues were $9.5 billion in the third quarter, an increase of 4percentt, compared with last year's third quarter.
SAP's results were a stark contrast with last month's showing by Oracle, which reported a 7 percent rise in software revenues and a 10 percent drop in hardware revenues.
Hardware revenues were roughly a third of the company's total sales in the first half of 2004, reflecting I.B.M.'s relatively recent exits from the disk drive, consumer PC, aluminum semiconductor and chip packaging businesses.
Total hardware revenues edged up 17% to $8.6 billion, and revenues from personal systems increased significantly.
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