Enterprise IT vendor IBM on Monday said its third quarter revenue dipped 4 percent to $22.4 billion, while its net income plummeted 17 percent to $3.5 billion from continuing operations.
IBM chairman, president and chief executive officer Ginni Rometty said: “We are disappointed in our performance. We saw a marked slowdown in September in client buying behavior, and our results also point to the unprecedented pace of change in our industry.”
“We again performed well in our strategic growth areas – cloud, data and analytics, security, social and mobile – where we continue to shift our business. We will accelerate this transformation,” she added.
IBM divested the loss making semiconductor manufacturing business to GLOBALFOUNDRIES in a bid to focus on research and development.
IBM said revenue from the Americas decreased 2 percent to $10.1 billion.
Revenues of IBM from Europe / Middle East / Africa dipped 2 percent to $7.2 billion.
IBM’s Asia-Pacific revenues decreased 9 percent to $5.0 billion.
Revenues from the company’s growth markets dipped 6 percent.
IBM’s revenues in the BRIC countries — Brazil, Russia, India and China — dropped 7 percent.
Global Services segment revenues decreased 3 percent to $13.7 billion.
Global Technology Services segment revenues decreased 3 percent to $9.2 billion.
Global Business Services segment revenues were down 2 percent to $4.5 billion.
Revenues from the Software segment dipped 2 percent to $5.7 billion.
Revenues from IBM’s middleware products, which include WebSphere, Information Management, Tivoli, Workforce Solutions and Rational products, declined 1 percent to $3.7 billion. IBM said its operating systems revenues decreased 11 percent to $513 million.
IBM said its Q3 revenues from Systems and Technology segment declined 15 percent to $2.4 billion.
Revenues from Power Systems dropped 12 percent. Revenues from System x decreased 10 percent. Revenues from System z mainframe server products decreased 35 percent compared with the year-ago period. Revenues from System Storage decreased 6 percent.