IBM Beats Q2 Estimates, Sees Systems Revenue Fall
IBM announced Q2 2013 earnings results with systems revenue down 12 percent, yet the company beat analyst expectations.IBM beat expectations in its second-quarter 2013 earnings, despite a shortfall of 12 percent in its Systems and Technology revenue. Excluding a $1 billion “workforce rebalancing” charge, IBM exceeded analyst expectations and reported earnings per share(EPS) of $3.91, which beat analyst expectations of $3.77 per share. With the restructuring, IBM net income dropped 17 percent, from $3.9 billion in the second quarter of 2012 to $3.2 billion this year. Big Blue also saw total revenues fall for the quarter. Total revenues for the second quarter of 2013 of $24.9 billion were down 3 percent from the second quarter of 2012. “The workforce restructuring had significant impact on our year-to-year profits,” said Mark Loughridge, IBM senior vice president and chief financial officer, in a call with analysts.
IBM has been under pressure since falling short in revenue and net income in the first quarter, missing its earnings estimates for the first time in eight years. At that time, IBM decided to launch a restructuring effort that would cost the company $1 billion in severance and other expenses related to trimming its workforce. According to the Alliance@IBM, an IBM employee organization, more than 3,000 jobs have been eliminated in this round of layoffs.