IBM revenues, profits take dive in Q4
Tech behemoth disappoints yet again, as Lenovo sale takes toll; investors await restructuring news
IBM's fourth-quarter financials showed double-digit dives for both revenue and earnings from the previous year, the Register reported.
Quarterly revenues of $24.1bn missed analysts' projections and represented a 12% dip from Q4 2013, while annual revenue dropped by 5.7% to $92.8bn.
Net profit for Q4 stood at $5.5bn, down 11.3%, year on year and annually net income was down 27.1%, to $12bn.
The company's chief financial officer, Martin Schroeter, attributed the figures to one-time charges stemming from the sales of IBM's low-end server division to Lenovo and its Customer Care outsourcing unit to Synnex. Foreign exchange fluctuations leading to a stronger dollar was also a factor.
Almost all of IBM's business units suffered year-on-year revenue declines, including Workforce Solutions, which was down 12%; Systems & Technology, down by 39%; and Mainframes, down by 26%.
IBM's CEO Ginni Rometty is said to be close to announcing a restructuring gambit that would split the company into a number of new units, focusing on third-platform components such as cloud and data analytics. IBM's high-end AI engine, Watson, now famous for winning US quiz show Jeopardy, is expected to be given prominent focus under the fresh strategy.