IBM said its revenue slipped 4.7 percent to $18.18 billion in the first quarter of 2019 as its business performance took a beating in Asia Pacific.
Its net income fell to $1.59 billion, or $1.78 per share, in the quarter ended March 31 from $1.68 billion, or $1.81 per share, a year earlier.
James Kavanaugh, chief financial officer of IBM, said: “Our focus on prioritizing our investments in the emerging high-value segments of our industry has enabled us to drive higher profitability and strong cash generation.”
IBM revenue from Cloud & Cognitive Software fell 2 percent to $5 billion, led by 2 percent growth in cognitive applications and 2 percent dip in cloud and data platforms.
IBM’s revenue from Global Business Services was flat at $4.1 billion with the company achieving growth in consulting and global process services.
Global Technology Services revenues dropped 7 percent to $6.9 billion though there was growth in hybrid cloud revenue.
IBM’s Systems revenue fell 11 percent to $1.3 billion. IBM achieved growth in Power, but faced the impact of the IBM Z product cycle dynamics and weakness in Storage.
IBM’s Global Financing revenue growth was flat at $406 million.
IBM said its Cloud revenue growth in the first quarter accelerated to 12 percent with our as-a-service offerings up 15 percent. With this, our Cloud revenue has grown to $19.5 billion over the last year.
IBM is investing heavily to build capabilities across business, like IBM cloud, IBM cloud private and IBM cloud private for data, the IBM multi-cloud manager, cloud garages, cloud migration services and cloud optimized systems.