IBM CEO Ginni Rometty promises strong fourth quarter with new products

Telecom Lead India: IBM CEO Ginni Rometty said IBM sees good opportunity with a strong product lineup heading into fourth quarter and annuity businesses that provide a solid base of revenue, profit and cash.

IBM CEO Ginni Rometty

IBM reported revenues of $24.7 billion in third quarter, down 5 percent from the third quarter of 2011. Currency negatively impacted revenue growth by nearly $1 billion.

In the third quarter, IBM said its net income was $3.8 billion, flat year-to-year.

IBM continued to drive margin, profit and earnings growth through its focus on higher-value businesses, strategic growth initiatives and productivity in the third quarter.

Regional financial result

The Americas’ third-quarter revenues were $10.4 billion, down 4 percent.

Revenues from Europe/Middle East/Africa were $7.2 billion, down 9 percent.

IBM said its Asia-Pacific revenues increased 1 percent to $6.5 billion.

OEM revenues were $538 million, down 28 percent compared with the 2011 third quarter.

According to IBM, revenues from the company’s growth markets decreased 1 percent.

Revenues in the BRIC countries – Brazil, Russia, India and China – increased 4 percent.

Global Technology Services segment revenues decreased 4 percent to $9.9 billion.

Global Business Services segment revenues were down 6 percent to $4.5 billion.

Revenues from the Software segment were $5.8 billion, down 1 percent.

Revenues from the Systems and Technology segment totaled $3.9 billion for the quarter, down 13 percent.

Total systems revenues, excluding RSS, decreased 8 percent.

IBM said revenues from System x were down 5 percent.

Revenues from System z mainframe server products decreased 20 percent compared with the year-ago period.

Revenues from System Storage decreased 10 percent.

Revenues from Retail Store Solutions decreased 79 percent year over year as a result of the divestiture in the quarter.

Revenues from Microelectronics OEM decreased 25 percent.

editor@telecomlead.com

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