IBM today said its net income fell 5 percent in Q1 2015 to $2.4 billion, while revenue dipped 12 percent to $19.6 billion.
Most of its traditional businesses failed to bring revenue growth. The silver lining was Cloud and Business analytics. Cloud revenue of IBM increased more than 60 percent, while Business analytics revenue of IBM jumped 12 percent.
IBM chairman Ginni Rometty tried to paint a rosy picture about the future
“Our strategic imperatives growth rate accelerated, demonstrating the power of our offerings in these new opportunities and contributing to improved revenue performance. Our focus on higher value through portfolio transformation and investment in key areas of the business drove continued margin expansion,” said Ginni Rometty, IBM chairman, president and chief executive officer.
IBM said its Q1 2015 revenue from Americas’ fell 3 percent to $9.3 billion.
Revenue of IBM from Europe/Middle East/Africa dropped 19 percent to $6.1 billion.
IBM Asia-Pacific revenues decreased 18 percent to $4.1 billion.
Revenues of IBM from the company’s growth markets decreased 16 percent. Revenues from the company’s major markets fell 11 percent.
IBM said Global Services revenues decreased 12 percent to $12.2 billion. Global Technology Services segment revenues were down 11 percent to $7.9 billion. Global Business Services segment revenues fell 13 percent to $4.3 billion.
Revenues from the Software segment fell 8 percent to $5.2 billion.
Revenues from IBM’s middleware products, which include WebSphere, Information Management, Tivoli, Workforce Solutions and Rational products, dipped 5 percent to $3.5 billion. Operating systems revenues dropped 15 percent to $0.4 billion.
Revenues for the Systems Hardware segment decreased 23 percent to $1.7 billion.
Revenues from System z mainframe server products increased 118 percent. Total delivery of System z computing power, as measured in MIPS (millions of instructions per second), increased 95 percent. Revenues from Power Systems were down 3 percent compared. Revenues from System Storage decreased 8 percent, said IBM.