IBM CEO Ginni Rometty has failed to improve revenue of the technology company during the first quarter of 2016.
Revenue of IBM fell to $18.684 billion in Q1 2016 from $19.59 billion in Q1 2015, while IBM’s net income dropped to $2.014 billion from $2.328 billion.
Media reports from the US said this is the 16th consecutive drop in quarterly revenue for IBM indicating the main strategy of IBM is yet to reflect in its topline growth.
IBM generated $4 billion (–1.7 percent) from Cognitive Solutions including solutions software and transaction processing software. Solutions software grew, led by security and analytics solutions, including strong growth in the Watson businesses.
IBM revenue from Global Business Services including consulting, global process services, application management was $4.1 billion (–4.3 percent).
IBM added $8.4 billion (–1.5 percent) revenue from Technology Services and Cloud Platforms including infrastructure services, technical support services, integration software) — revenues of $8.4 billion.
Systems including systems hardware and operating systems software revenue of IBM were $1.7 billion (–21.8 percent).
IBM CEO Ginni Rometty said: “IBM has established itself as the industry leader in cloud, analytics and cognitive, all of which helped drive our strategic imperatives revenue growth at a strong double-digit rate, substantially faster than the market.”
In the first quarter, IBM invested $3.6 billion in acquisitions and capital expenditures.
IBM revenue from cloud, analytics and engagement increased 14 percent. Total cloud revenues including public, private and hybrid grew 34 percent. Cloud revenue of IBM over the trailing 12 months was $10.8 billion. Revenues from analytics increased 7 percent. Revenues from mobile increased 88 percent and from security increased 18 percent.