Menu
IBM's results hampered by slowing hardware sales

IBM's results hampered by slowing hardware sales

System x and Power Systems sales continue to slide, though mainframe sales were strong for IBM

Managing its way nimbly through times of economic sluggishness, IBM reported a 6 percent increase in profit for the third quarter even as its revenue declined.

IBM's third-quarter profit was US$4.0 billion, compared to $3.8 billion in the third quarter of 2012, the company announced Wednesday. Revenue was $23.7 billion, compared to $24.7 billion in the year prior.

"In the third-quarter we continued to expand operating margins and increased earnings per share, but fell short on revenue," said Ginni Rometty, IBM chairman, president and CEO, in a statement.

Most noticeably, hardware sales continued to hamper the company's business.

Revenue from IBM's Systems and Technology segment generated $3.2 billion in revenue, down 17 percent from the third quarter in 2012. System x revenue fell by 18 percent, Power Systems revenue fell by 38 percent and storage system revenue fell by 11 percent.

Rometty characterized IBM's hardware business as "under performing" and said the company is "taking action to improve execution." It plans to put more emphasis on growth markets to reignite revenue growth, Rometty said.

Revenue from the Americas, totalling $10.3 billion, decreased 1 percent from the same quarter a year ago. Revenue from Europe, the Middle East and Africa increased 1 percent to $7.3 billion, while revenue from the Asia-Pacific region declined 15 percent to $5.5 billion.

The services divisions produced middling results for the company. Revenue from the Global Technology Services segment decreased 4 percent to $9.5 billion for the quarter, which ended Sept. 30, while revenue from the Global Business Services segment was flat at $4.6 billion.

Revenue from IBM's software segment climbed modestly to $5.8 billion, up 1 percent from the same quarter a year ago.

Joab Jackson covers enterprise software and general technology breaking news for The IDG News Service. Follow Joab on Twitter at @Joab_Jackson. Joab's e-mail address is Joab_Jackson@idg.com


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags business issuesIBMfinancial results

Featured

Slideshows

The making of an MSSP: a blueprint for growth in NZ

The making of an MSSP: a blueprint for growth in NZ

Partners are actively building out security practices and services to match, yet remain challenged by a lack of guidance in the market. This exclusive Reseller News Roundtable - in association with Sophos - assessed the making of an MSSP, outlining the blueprint for growth and how partners can differentiate in New Zealand.

The making of an MSSP: a blueprint for growth in NZ
Reseller News Platinum Club celebrates leading partners in 2018

Reseller News Platinum Club celebrates leading partners in 2018

The leading players of the New Zealand channel came together to celebrate a year of achievement at the inaugural Reseller News Platinum Club lunch in Auckland. Following the Reseller News Innovation Awards, Platinum Club provides a platform to showcase the top performing partners and start-ups of the past 12 months, with more than ​​50 organisations in the spotlight.​​​

Reseller News Platinum Club celebrates leading partners in 2018
Meet the top performing HP partners in NZ

Meet the top performing HP partners in NZ

HP has honoured its leading partners in New Zealand during 2018, following 12 months of growth through the local channel. Unveiled during the fourth running of the ceremony in Auckland, the awards recognise and celebrate excellence, growth, consistency and engagement of standout Kiwi partners.

Meet the top performing HP partners in NZ
Show Comments