IBM Q3 revenue dips 4 percent to $23.7 billion

IBM third quarter 2013 revenues dipped 4 percent to $23.7 billion from the third-quarter of 2012.

Third-quarter net income increased 6 percent to $4.0 billion.

IBM CEO Ginni Rometty said the company is taking action to improve execution in growth markets unit and in the elements of its hardware businesses that are under performing. IBM revenues from BRIC countries including India dipped 15 percent.

The company said its revenue in the Americas decreased 1 percent to $10.3 billion.

IBM revenues from Europe/Middle East/Africa increased 1 percent to $7.3 billion.

Asia-Pacific revenues decreased 15 percent to $5.5 billion.

OEM revenues were $534 million, down 1 percent.

Revenues from the company’s growth markets were down 9 percent.

Revenues in the BRIC countries — Brazil, Russia, India and China — were down 15 percent.

IBM says global technology services segment revenues decreased 4 percent to $9.5 billion.

Global business services segment revenues were flat at $4.6 billion.

IBM said revenues from the software segment increased 1 percent to $5.8 billion.


Revenues from IBM’s key middleware products, which include WebSphere, Information Management, Tivoli, Social Workforce Solutions and Rational products, were $3.7 billion, up 3 percent.

Operating systems revenues of $576 million were down 4 percent (down 2 percent, adjusting for currency) compared with the prior-year quarter.

Revenues from the WebSphere family of software products were flat year over year.

Information Management software revenues increased 2 percent.

Revenues from Tivoli software increased 2 percent.

Revenues from Social Workforce Solutions increased 14 percent, and Rational software increased 12 percent.

Revenues from the Systems and Technology segment decreased 17 percent to $3.2 billion.

The company’s total gross profit margin was 48.0 percent in the 2013 third-quarter compared with 47.4 percent in the 2012 third-quarter period.

Net income margin increased 1.6 points to 17.0 percent.

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