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October 17, 2012

IBM Q3 revenue declines 5% to $24.7bn

Net income fell 0.4% to $3.82bn for the quarter

By CBR Staff Writer

IBM has reported 5% decrease in third quarter revenue in 2012 to $24.7bn from $26.1bn it reported during the corresponding period in 2011 due to negative currency impact and slump in hardware sales.

The company’s net income decreased 0.4% to $3.82bn for the quarter, compared to $3.83bn in the same quarter previous year.

Revenues in the Americas decreased by 4% to $10.4bn compared to the 2011 period and a decline of 9% to $7.2bn was seen in revenues from Europe/Middle East/Africa.

The company reported 1% increase in Asia-Pacific revenues to $6.5bn in the quarter while OEM revenues decreased 28% to $538m.

Revenues in the company’s global technology services segment decreased 4% to $9.9bn for the quarter and software segment revenues were down 1% to $5.8bn.

Systems and technology segment revenues decreased 13% to $3.9bn for the quarter while after adjusting currency the revenue decline 12% compared to third quarter of 2011.

IBM president and chief executive officer Ginni Rometty said that in the third quarter, the company continued to drive margin, profit and earnings growth through its focus on higher-value businesses, strategic growth initiatives and productivity.

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"Looking ahead, we see good opportunity with a strong product lineup heading into this quarter and annuity businesses that provide a solid base of revenue, profit and cash," Rometty said.

"We are reiterating our full-year 2012 operating earnings per share expectation of at least $15.10."

The company expects 2012 full-year operating diluted earnings per share to be at least $14.29, to reflect the impact of UK pension-related charges.

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