IBM logs 12th straight quarterly revenue decline
Restructuring gambit struggles, but annual cloud revenue surges
IBM posted a 12% fall in first-quarter revenues despite a fire-sale, restructuring and renewed focus on cloud, Reuters reported.
The news marks the 12th consecutive quarter that IBM has seen a revenue dip. Its share price, which has dived 13% in the past year but was up 3.4% in regular trading, showed slight after-hours fluctuations yesterday, but remained largely unaffected.
Meagre-margin businesses shed by the company include its low-end server unit, sold to China's Lenovo, which also bought IBM's loss-making PC division in 2005. Other jettisoned businesses include cash register systems and semiconductors.
Some 50% of IBM's revenue is from overseas and the company predicted a 7% hit from currency exchange for the full year.
The good news for investors, and perhaps the reason share trading remained stable, is the increase in revenue for cloud services, which stood at $7.7bn for the past 12 months.