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

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

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Joab Jackson

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?