IBM revenues dip 5%, profit declines 1% in Q1 2013

Infotech Lead India: IBM on Thursday said its revenues for the first quarter of 2013 decreased 5 percent to $23.4 billion from the first quarter of 2012.

IBM’s first-quarter net income declined 1 percent to $3 billion.

The technology giant admitted that it could not close a number of software and mainframe transactions.

IBM posted decline in revenues in all its main geographies including America, Europe and Asia Pacific.

“Despite a solid start and good client demand we did not close a number of software and mainframe transactions that have moved into the second quarter. The services business performed as expected with strong profit growth and significant new business in the quarter,” said Ginni Rometty, IBM chairman, president and chief executive officer.

The Americas’ first-quarter revenues were $10 billion, a decrease of 4 percent.

Revenues from Europe/Middle East/Africa were $7.3 billion, down 4 percent.

Asia-Pacific revenues decreased 7 percent.

OEM revenues were $426 million, down 16 percent compared with the 2012 first quarter

Revenues from the company’s growth markets decreased 1 percent.

Revenues in the BRIC countries — Brazil, Russia, India and China — decreased 1 percent.

Global Technology Services segment revenues decreased 4 percent to $9.6 billion.

Global Business Services segment revenues were down 3 percent to $4.5 billion.

Revenues from the Software segment were flat at $5.6 billion compared with the first quarter of 2012.

Revenues from IBM’s key middleware products, which include WebSphere, Information Management, Tivoli, Social Workforce Solutions (formerly Lotus) and Rational products, were $3.5 billion, up 1 percent versus the first quarter of 2012.

Operating systems revenues of $578 million were down 2 percent (down 1 percent, adjusting for currency) compared with the prior-year quarter.

Revenues from the WebSphere family of software products increased 6 percent year over year. Information Management software revenues decreased 2 percent.

Revenues from Tivoli software increased 1 percent. Revenues from Social Workforce Solutions (formerly Lotus) software increased 8 percent, and Rational software decreased 2 percent.

Revenues from the Systems and Technology segment totaled $3.1 billion for the quarter, down 17 percent from the first quarter of 2012. Excluding Retail Store Solutions (RSS), revenues were down 14 percent.


[email protected]