IBM reports another sales slide

The world’s largest technology services company said that their revenue fell by 13.5 per cent to $20.8 billion, while net profit fell by 17 per cent to $3.5billion, reports BBC. IBM has reported a fall in sales for the 13th consecutive quarter.
The strong US dollar and IBM’s decision to move away from its hardware business to focus on higher-margin operations both hit its performance.
Chief executive Ginni Rometty said that the second-quarter results reflected the company’s ongoing transformation. “We continue to transform our business to higher value and return value to shareholders,” she said.
US sales fell 8 per cent, while European, Middle East and African sales dropped 17 per cent.
However, its worst performance was in Brazil, Russia, India and China where sales fell 35 per cent.
IBM said much of the fall was due to the impact
of the strong US dollar and the sale of its System business. Excluding that unit, sales were down by just 18 per cent.
In contrast, it said revenues from its new areas of focus - cloud computing, analytics and engagement - had risen by more than 20 per cent this year. IBM shares fell 4.9 per cent  in after-hours trading in New York.
They closed at $173.25, valuing the company at almost $170billion (£109 billion).

IBM reports another sales slide

The worlds largest technology services company said that their revenue fell by 13.5 per cent to $20.8 billion, while net profit fell by 17 per cent to $3.5billion, reports BBC. IBM has reported a fall in sales for the 13th consecutive quarter. The strong US dollar and IBMs decision to move away from its hardware business to focus on higher-margin operations both hit its performance. Chief executive Ginni Rometty said that the second-quarter results reflected the companys ongoing transformation. We continue to transform our business to higher value and return value to shareholders, she said. US sales fell 8 per cent, while European, Middle East and African sales dropped 17 per cent. However, its worst performance was in Brazil, Russia, India and China where sales fell 35 per cent. IBM said much of the fall was due to the impact of the strong US dollar and the sale of its System business. Excluding that unit, sales were down by just 18 per cent. In contrast, it said revenues from its new areas of focus - cloud computing, analytics and engagement - had risen by more than 20 per cent this year. IBM shares fell 4.9 per cent in after-hours trading in New York. They closed at $173.25, valuing the company at almost $170billion (109 billion).