IBM second quarter revenue dips 2%, net income up 28%

IBM today said its second quarter revenue dipped 2 percent to $24.4 billion, while net income surged 28 percent to $4.1 billion.

Main segments that showed spectacular performance were Cloud (more than 50 percent year-to-date growth), cloud delivered as a service (100 percent to $2.8 billion year-to-year), business analytics (up 7 percent year-to-date) mobile (more than 100 percent year-to-date) and security (up more than 20 percent year-to-date), said IBM.

“In the second quarter, we made further progress on our transformation. We performed well in our strategic imperatives around cloud, big data and analytics, security and mobile,” said Ginni Rometty, IBM chairman, president and chief executive officer.

Main geographies

IBM said Americas’ second-quarter revenues slipped 1 percent to $10.6 billion.

Revenues from Europe/Middle East/Africa rose 1 percent to $7.9 billion.

Asia-Pacific revenues decreased 9 percent to $5.3 billion.

OEM revenues decreased 19 percent to $433 million.

IBM said Q2 revenues from the company’s growth markets dipped 7 percent.

Revenues in the BRIC countries — Brazil, Russia, India and China — declined 2 percent.

IBM booth


Global Services segment revenues decreased 1 percent to $13.9 billion.

Global Technology Services segment revenues decreased 1 percent.

Global Business Services segment revenues dipped 2 percent to $4.5 billion.


Revenues from the Software segment rose 1 percent to $6.5 billion.

Revenues from IBM’s key middleware products, which include WebSphere, Information Management, Tivoli, Workforce Solutions and Rational products, were $4.3 billion, up 1 percent.


Revenues from the Systems and Technology segment decreased 11 percent to $3.3 billion for the second quarter.

Total systems revenues decreased 11 percent. Revenues from System z mainframe server products, in the seventh quarter since they were announced, decreased 1 percent compared with the year-ago period.

Total delivery of System z computing power, as measured in MIPS (millions of instructions per second), was flat.

Revenues from Power Systems were down 28 percent compared with the 2013 period.

IBM said Q2 revenues from System x were down 3 percent.

Revenues from System Storage decreased 12 percent and within this business area, flash storage grew more than 100 percent.

Revenues from Microelectronics OEM decreased 18 percent.

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