IBM revenue falls 3pc to US$24.9bn in Q2 2013

18 Jul 2013

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IBM has reported US$24.9bn in revenue for Q2 2013, with net income of US$3.2bn and diluted earnings per share (EPS) at US$2.91.

IBM’s revenue is down 3pc from last year and this EPS figure is a drop of 13pc year-on-year, while net income is down 17pc.

Breaking down the revenue, IBM’s software, business analytics, Smarter Planet and cloud divisions have all seen growth, while revenue from services, systems and technology declined and revenue from growth markets remained flat.

“In the second quarter, we delivered strong performance in our higher-value software and mainframe businesses and again significantly increased our services backlog on growth in new business,” said Ginni Rometty, IBM chair, president and chief executive officer.

“Going forward, we will continue investing in our strategic growth initiatives, acquiring and divesting capabilities, rebalancing skills and taking action in the areas that are not performing. We expect continued improvement through the second half of the year and remain confident that we will achieve our increased 2013 operating EPS expectation of at least US$16.90, excluding the US$1bn workforce rebalancing charge in the second quarter.”

The US$1bn charge Rometty refers to comes from a company restructure that followed its Q1 earnings call earlier this year. The sale of a hardware business was intended to offset this charge, according to The Associated Press, but this sale has reportedly been delayed to next year and so both items were excluded from this quarter’s earnings call.

Elaine Burke is managing editor of Siliconrepublic.com

editorial@siliconrepublic.com