IBM has reported 5% decline in its revenue during the first quarter of 2013 (1Q13) to$23.4bn, compared to the same quarter in 2012, after recording declines in services and hardware sales.
During the period, the company reported a profit of $3.03bn or $2.70 per share, compared to $3.07bn or $2.61 a share recorded during the corresponding quarter last year.
IBM chairman, president, chief executive officer Ginni Rometty said during the quarter, the company reported rise in operating net income, earnings per share and expanded operating margins, while not achieved all of goals.
"Despite a solid start and good client demand we did not close a number of software and mainframe transactions that have moved into the second quarter," Rometty said.
"The services business performed as expected with strong profit growth and significant new business in the quarter."
Company’s services revenue dropped 4%, systems and technology revenue declined 17%, growth markets revenue dropped 1% while revenues from the software segment remained flat wit 1% growth.
Business analytics revenue on the other hand increased 7%, smarter planet revenue rose more than 25% and cloud revenue increased more than 70%.
IBM’s revenues from growth markets rose 1%, while reported 1% drop in revenues in BRIC countries including Brazil, Russia, India and China during 1Q13, over 1Q12.
The company’s overall gross profit reached 45.6% during the quarter, compared to 45.1% in 1Q12, while overall profit margin stood at 46.7% due to rises reported by Global Technology Services and Global Business Services.
