IBM reports fall in revenue in third-quarter results

17 Oct 2012

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IBM has reported revenue for the third quarter of 2012 of US$24.7bn, a 5pc drop from the third quarter of 2011, with revenue from hardware sales down 13pc during the quarter.

Third-quarter net income was US$3.8bn, flat year-to-year; or US$3.9bn, up 3pc excluding the impact of UK pension-related charges. Operating net income was US$4.2bn compared with US$4bn in the third quarter of 2011, an increase of 5pc.

IBM said total revenues for the third quarter of 2012 of US$24.7bn were down 5pc from the third quarter of 2011. It said currency negatively impacted revenue growth by nearly US$1bn.

In terms of geographic regions, the Americas’ third-quarter revenues were US$10.4bn, a decrease of 4pc from the same 2011 period. Revenues from the EMEA region, meanwhile, were US$7.2bn, down 9pc.

Revenues from the software segment were US$5.8bn, a 1pc drop compared with the third quarter of 2011.

IBM’s hardware unit, however, has been impacted by a 13pc fall in revenue to total US$3.9bn for the quarter.

"Looking ahead, we see good opportunity with a strong product lineup heading into this quarter and annuity businesses that provide a solid base of revenue, profit and cash. We are reiterating our full-year 2012 operating earnings per share expectation of at least US$15.10," said Ginni Rometty, IBM chairman, president and CEO, in a statement.

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Carmel was a long-time reporter with Siliconrepublic.com

editorial@siliconrepublic.com