IBM Reports 3Q Revenue Decline as Transformation Continues
For the third quarter of 2015, IBM reported another revenue decline as the company continues for transform to strategic businesses.IBM reported third-quarter revenues of $19.3 billion, down 14 percent from the same period in 2014. Net income for the quarter fell to $3 billion from $3.5 billion in the third quarter of 2014, down 14 percent. IBM's quarterly results took heavy hits in both hardware, down 39 percent, and software, down 10 percent. The company's services units also saw declines. Yet, if there is a silver lining in all this, it is IBM's cloud business, which grew more than 65 percent year-to-date as IBM continues to transform its mix of offerings to higher-value solutions. "In the third quarter, we again made progress in the transformation of our business to higher value, with strong growth in our strategic imperatives and expanded operating margins," Ginni Rometty, IBM chairman, president and CEO, said in a statement. "We are continuing to make significant investments to build platforms around analytics, cloud, mobility and security that lay the foundation for a new era of cognitive business—where we see long-term value for our clients and shareholders."
Revenues from the company's strategic imperatives—cloud, analytics and engagement—increased 17 percent year-to-year and 20 percent year-to-date. Total cloud revenues (public, private and hybrid) increased more than 45 percent (or more than 65 percent, when adjusted for currency and the divested System x business) year-to-date—and reached $9.4 billion when tallied over the trailing 12 months, IBM said.