Hardware torpedoes IBM's Q4 revenue

Sluggish sales of IBM mainframes and other hardware put a damper on the company's latest quarterly earnings report

IBM financial results for the past five quarters

IBM financial results for the past five quarters

Still hampered by slow hardware sales, IBM reported a 5.5 percent decline in revenue for the fourth quarter, even as it managed to post a 6 percent gain in net income.

Because of the sluggish revenue, IBM senior management will forgo their bonuses, or "personal annual incentive payments," for the year, said Ginni Rometty, IBM chairman, president and CEO, in a statement.

IBM's fourth-quarter revenue was US$27.7 billion, compared with $29.3 billion in the fourth quarter of 2012, the company announced Tuesday. Revenue for the entire year was $99.8 billion, compared with $104.5 billion in the year prior, a 4.6 percent decrease.

IBM's fourth-quarter income was $6.2 billion, compared with $5.8 billion in the fourth quarter of 2012. For the year, IBM reported $16.5 billion in income, down 1 percent from $16.6 billion in the prior year.

Revenue from IBM's Systems and Technology hardware segment was $4.3 billion, down 26 percent from the fourth quarter in 2013. For the year, Systems and Technology delivered $14.4 billion, a decrease of 18.7 percent from the full year 2012.

The services divisions produced so-so results for the company. Revenue from Global Technology Services was $9.9 billion for the quarter, down 3.6 percent from $10.3 billion the same quarter a year before. Revenue from the Global Business Services segment grew slightly, up 0.6 percent to $4.7 billion for the fourth quarter, which ended Dec. 31.

For the year, Global Technology Services revenue shrank to $38.5 billion, down 4.2 percent from $40 million the year before. Global Business Services revenue also shrank by 0.9 percent, to $18.4 billion from $18.6 billion a year ago.

Revenue from the software business grew modestly. For the fourth quarter of 2013, the software group logged $8.1 billion in revenue, a 2.8 percent increase from $7.9 billion in the same quarter a year ago. For the year, the IBM software group generated $26 billion in revenue, up 1.9 percent from $25.4 billion in 2012.

Joab Jackson covers enterprise software and general technology breaking news for The IDG News Service. Follow Joab on Twitter at @Joab_Jackson. Joab's e-mail address is Joab_Jackson@idg.com

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags business issuesIBMfinancial results

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Joab Jackson

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Matthew Stivala

HP OfficeJet 250 Mobile Printer

The HP OfficeJet 250 Mobile Printer is a great device that fits perfectly into my fast paced and mobile lifestyle. My first impression of the printer itself was how incredibly compact and sleek the device was.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?