Tuesday, 21 July 2015

IBM reports drop in sales for 13th consecutive quarter

IBM logo

IBM has reported a fall in sales for the 13th consecutive quarter.
The world's largest technology services company said that revenue fell 13.5% to $20.8bn, while net profit fell 17% to $3.5bn.
The strong US dollar and IBM's decision to move away from its hardware business to focus on higher-margin operations both hit its performance.
Chief executive Ginni Rometty said that the second-quarter results reflected the company's ongoing transformation.
"We continue to transform our business to higher value and return value to shareholders," she said.
US sales fell 8%, while European, Middle East and African sales dropped 17%.
However, its worst performance was in Brazil, Russia, India and China where sales fell 35%.
IBM said much of the fall was due to the impact of the strong US dollar and the sale of its System x business. Excluding that unit, sales were down by just 18%.
In contrast, it said revenues from its new areas of focus - cloud computing, analytics and engagement - had risen by more than 20% this year.
IBM shares fell 4.9% in after-hours trading in New York.
They closed at $173.25, valuing the company at almost $170bn (£109bn).


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