Date
28 March 2017
Cloud computing was a bright spot for IBM, showing strong revenue growth. Photo: technewspedia.com
Cloud computing was a bright spot for IBM, showing strong revenue growth. Photo: technewspedia.com

IBM sales fall for 13th straight quarter, profit slumps 17%

IBM has reported a fall in sales for the 13th consecutive quarter, BBC News reported Tuesday.

The world’s largest technology services company said revenue fell 13.5 percent to US$20.8 billion, while net profit fell 17 percent to US$3.5 billion.

The strong US dollar and IBM’s decision to move away from its hardware business to focus on higher-margin operations hit its performance.

Chief executive Ginni Rometty said the second-quarter results reflected the company’s ongoing transformation.

US sales fell 8 percent, while European, Middle East and African sales dropped 17 percent.

The firm’s worst performance was in Brazil, Russia, India and China, where sales fell 35 percent.

In contrast, it said revenues from its new areas of focus — cloud computing, analytics and engagement — had risen more than 20 percent this year.

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