Home Business IBM Revenue Falls for 13th Consecutive Quarter

IBM Revenue Falls for 13th Consecutive Quarter


IBM’s sales dropped for the 13th consecutive quarter, the world’s largest technology services company has reported.

According to the company, revenue fell 13.5% to $20.8 billion, while net profit fell 17% to $3.5 billion.

The strong US dollar and IBM’s decision to move away from its hardware business to focus on higher-margin operations both hit its performance.

CEO Ginni Rometty said that the second-quarter results reflected the company’s ongoing transformation.IBM revenue falls July 2015

“We continue to transform our business to higher value and return value to shareholders,” she said.

US sales fell 8%, while European, Middle East and African sales dropped 17%.

However, its worst performance was in Brazil, Russia, India and China where sales fell 35%.

IBM said much of the fall was due to the impact of the strong US dollar and the sale of its System x business. Excluding that unit, sales were down by just 18%.

In contrast, IBM said revenues from its new areas of focus – cloud computing, analytics and engagement – had risen by more than 20% this year.

IBM shares fell 4.9% in after-hours trading in New York.

They closed at $173.25, valuing the company at almost $170 billion.

Clyde is a business graduate interested in writing about latest news in politics and business. He enjoys writing and is about to publish his first book. He’s a pet lover and likes to spend time with family. When the time allows he likes to go fishing waiting for the muse to come.