IBM Q1 2014 result: revenue dips 4%, income falls 21%

Enterprise IT vendor IBM today said its revenue in Q1 2014 decreased 4 percent to $22.5 billion, while its income fell 21 percent to $2.4 billion.

The results include the impact of a charge of $870 million for workforce rebalancing and a gain of nearly $100 million for the divestiture of the customer care outsourcing business, said IBM.

“In the first quarter of 2014, we continued to take actions to transform parts of the business and to shift aggressively to our strategic growth areas including cloud, big data analytics, social, mobile and security,” said Ginni Rometty, IBM chairman, president and chief executive officer.

IBM revenue the Americas fell 4 percent to $9.6 billion.

Revenues from Europe/Middle East/Africa increased 4 percent to $7.6 billion.

IBM said Asia-Pacific revenues decreased 12 percent to $5 billion.

OEM revenues fell 17 percent to $355 million.

Revenues from the company’s growth markets decreased 11 percent.

IBM said revenues in the BRIC countries — Brazil, Russia, India and China — decreased 11 percent.

Global Technology Services segment revenues fell 3 percent to $9.3 billion.

Global Business Services segment revenues were flat to $4.5 billion.

IBM revenues from the Software segment rose 2 percent to $5.7 billion.

Q1 2014 revenues from IBM middleware products, which include WebSphere, Information Management, Tivoli, Workforce Solutions and Rational products, increased 4 percent to $3.7 billion.

Revenues from WebSphere increased 12 percent.

Information Management software revenues increased 1 percent.

Revenues from Tivoli software increased 7 percent.

Revenues from Workforce Solutions software decreased 4 percent, and Rational software increased 1 percent, said IBM.

IBM said its revenues from the Systems and Technology segment fell 23 percent to $2.4 billion.

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