IBM has reported another quarter of declining revenue and profit as it continues to transform its focus to higher value business.
Revenue for the second quarter was $20.8bn, down 13.5%, when compared to $24bn in the year-ago period..
Net income declined 16.6% to $3.45bn, or $3.50 per share, in Q2, compared to $4.13bn, or $4.12 per share, for the same period last year. It included operating net losses in discontinued operations associated to the Microelectronics business.
Revenues from the company’s global technology services segment dropped 10% to $8.1bn and global business services segment revenues were down 12% to $4.3bn.
Software segment revenues dropped 10% to $5.8bn and revenues from the systems hardware segment declined 32% to $2.1bn.
Revenue from what IBM calls strategic imperatives, which include cloud, analytics, and engagement products, increased over 20%.
The company’s total cloud revenues increased over 50%, or more than 70% adjusting for currency and the divested System x business. IBM has seen cloud revenue of $8.7bn in the past 12 months,.
IBM chairman, president and chief executive officer Ginni Rometty said: "Our results for the first half of 2015 demonstrate that we continue to transform our business to higher value and return value to shareholders.
"We expanded margins, continued to innovate across our portfolio and delivered strong growth in our strategic imperatives of cloud, analytics and engagement, which are becoming a significant part of our business."
