Menu
12 quarters of decline as IBM sales continue to slide

12 quarters of decline as IBM sales continue to slide

IBM’s well-documented shedding of dead business wood continues...

IBM’s well-documented shedding of dead business wood has continued into 2015, with the tech giant reporting its 12th consecutive quarter of revenue decline.

In announcing first-quarter 2015 earnings, IBM reported consolidated net income of US$2.3 billion or $2.35 of diluted earnings per share, including operating net losses in discontinued operations related to the Microelectronics business.

As the company turns its focus to cloud-computing offerings, total revenues from continuing operations for the first quarter of 2015 of $19.6 billion were down 12 percent, flat year-to-year adjusting for currency and divested businesses, from the first quarter of 2014.

"In the first quarter we had a strong start to the year,” says Ginni Rometty, chairman, president and CEO, IBM.

“Our strategic imperatives growth rate accelerated, demonstrating the power of our offerings in these new opportunities and contributing to improved revenue performance.

“Our focus on higher value through portfolio transformation and investment in key areas of the business drove continued margin expansion.”

Revenues from IBM’s growth markets decreased 16 percent while the company’s major markets were down 11 percent.

Furthermore, Global Services revenues decreased 12 percent to $12.2 billion, Global Technology Services segment revenues were down 11 percent to $7.9 billion and Global Business Services segment revenues were down 13 percent to $4.3 billion.

Revenues from the Software segment were down 8 percent to $5.2 billion compared with the first quarter of 2014 while revenues from IBM’s key middleware products, which include WebSphere, Information Management, Tivoli, Workforce Solutions and Rational products, were $3.5 billion, down 5 percent versus the first quarter of 2014.

In addition, operating systems revenues of $0.4 billion were down 15 percent compared with the prior-year quarter.

From a hardware perspective, revenues for the Systems Hardware segment totalled $1.7 billion for the quarter, down 23 percent from the first quarter of 2014.


Follow Us

Join the newsletter!

Error: Please check your email address.

Tags IBMCloud

Featured

Slideshows

Sizing up the NZ security spectrum - Where's the channel sweet spot?

Sizing up the NZ security spectrum - Where's the channel sweet spot?

From new extortion schemes, outside threats and rising cyber attacks, the art of securing the enterprise has seldom been so complex or challenging. With distance no longer a viable defence, Kiwi businesses are fighting to stay ahead of the security curve. In total, 28 per cent of local businesses faced a cyber attack last year, with the number in New Zealand set to rise in 2017. Yet amidst the sensationalism, media headlines and ongoing high profile breaches, confusion floods the channel, as partners seek strategic methods to combat rising sophistication from attackers. In sizing up the security spectrum, this Reseller News roundtable - in association with F5 Networks, Kaspersky Lab, Tech Data, Sophos and SonicWall - assessed where the channel sweet spot is within the New Zealand channel. Photos by Maria Stefina.

Sizing up the NZ security spectrum - Where's the channel sweet spot?
Show Comments