IBM Posts Revenue, Profit Fall In Q2
Adjusting for currency and its divested System x business, sold to Lenovo, IBM reported that its revenue of US$20.8 billion for the quarter was down 1 per cent year-on-year.
IBM’s net income of US$3.45 billion was down 16.6 per cent year-on-year.
Revenue from IBM’s Global Technology Services segment was down 10 per cent to US$8.1 billion (up 1 per cent adjusting for currency and the sale of System x), while revenue from its Software segment was down 10 per cent to US$5.8 billion (down 3 per cent adjusting for currency).
IBM’s Systems Hardware segment posted revenue of US$2.1 billion, down 32 per cent, rising 5 per cent adjusting for currency and the impact of the System x sale.
However, revenue from what IBM labels its “strategic imperatives” – comprising cloud, analytics and engagement – was up more than 20 per cent, and more than 30 per cent adjusting for currency and the divested System x business.
“Our results for the first half of 2015 demonstrate that we continue to transform our business to higher value and return value to shareholders,” Ginni Rometty, IBM chairman, president and chief executive officer, commented.
“We expanded margins, continued to innovate across our portfolio and delivered strong growth in our strategic imperatives of cloud, analytics and engagement, which are becoming a significant part of our business.”