Tuesday, April 19, 2016

Decline in sales at IBM – Financial and economic

The IT service no longer makes as little as revenue for fourteen years. Even the lucrative cloud business, the bad result does not absorb.

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(Reuters) The world’s largest IT services provider IBM ( IBM 152.53 00:53% ) is not getting the revenue loss in the handle. The revenue decreased at the beginning of already the 16th consecutive quarter, as the US company announced after US market close on Monday evening. With $ 18.68 billion IBM posted January-March 4.6% less than a year ago and therefore as little as 14 years not. That sent the IBM shares in after-hours trading on a downward slide. They lost 5% of its value, even though revenue was slightly higher than expected analysts.

Also, the restructuring of the Group does not pay so far from. The technology group wants similar to its rival Oracle ( ORCL 41.24 12:54% ) and Microsoft ( MSFT 56.46 1:46% ) keep thus changing the sector step. The Group therefore follows the trend away from traditional software to applications that run on servers far away from the customer. Under Board chief Ginni Rometty IBM therefore separates long been lucrative less hardware divisions. More profitable businesses such as security software and cloud offerings to outsource computer services on the Internet should be developed against it. The cloud sales rose in the quarter, although at 34%. But that was not enough to offset the declines of more than four, or 22% for services and hardware business. Competitors such as SAP ( SAP 71.61 make 2:23% ) to propose better, even if the cloud business not so stormy grows as before.

IBM to provide also the strong dollar and the customer restraint in IT spending. IBM scored more than half of its total revenues abroad. Net income dropped to $ 2.01 billion from $ 2.33 bn in the same period. On the outlook for the full year, IBM held. The group aims at adjusted earnings per share of at least $ 13:50. At the beginning of the profit was $ 2.35 per share.

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