IBM's Q2 sales slide 13 per cent on sale of low-end server unit

Mainframe sales lifted otherwise weak hardware results

IBM has reported another quarter of declining revenue and profit, though sales of its new mainframe gave it a lift.

Revenue for its second quarter was $US20.8 billion, down from $US24 billion a year earlier, IBM announced Monday.

The big drop is partly from IBM selling its x86 server business to Lenovo, as well as the impact of the strong US dollar. Without those factors, revenue would have declined one percent, IBM said.

Net income was $US3.45 billion, down 16.6 per cent.

Revenue from IBM's giant Global Technology Services segment were down 10 per cent to $US8.1 billion. Factoring out the currency effect and the sale of the x86 server business, revenues were up one percent, IBM said.

Hardware revenue slumped 32 per cent to $US2.06 billion, though without the x86 declines and the currency impact, hardware sales were up 5 per cent.

They were helped by IBM's mainframe business, which had been expected to be do well because IBM released the new z13 mainframe just a few months ago. Mainframe sales were up 9 per cent last quarter, IBM said, and would have been up 15 percent less the currency impact.

Revenue from what IBM calls its "strategic imperatives," or areas it has identified as critical to growth, were up more than 20 per cent from last year. Those areas are Cloud, analytics and "engagement" products.

Most big US multinationals have seen their sales crimped this year by the strong dollar, which can make products more expensive to customers paying with relatively weaker currencies.

James Niccolai covers data centers and general technology news for IDG News Service. Follow James on Twitter at @jniccolai. James's e-mail address is james_niccolai@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.

James Niccolai

IDG News Service
Show Comments

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Bitdefender 2019

Shop safely with our award-winning security solution. Protect yourself this Black Friday and get the exclusive Black Friday discount for Bitdefender 2019!

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

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

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?