Summary
- IBM has been pushing forward on its platform and cloud-driven strategy.
- Its Platform as a Service offering, formerly known as Bluemix, is now known as the IBM Cloud.
- IBM also has been investing in adding capabilities such as cloud migration services and cloud optimized systems.
IBM (NYSE:IBM) has been focusing on its strategic imperatives segment to drive the next level of growth. The segment includes the cloud, analytics, mobile, social, and security services. But the turnaround is taking a lot longer than expected. After three consecutive quarters of revenue growth, IBM revenues seem to be back on the decline. In an earlier streak, IBM had reported revenue declines for five straight years. The market is losing patience and post the result announcement, IBM's stock fell 2% in the after hours trading session.
IBM's Financials
Revenues for the first quarter fell 4.7% to $18.18 billion, missing the Street's forecast of $18.46 billion. Its net income also declined to $1.59 billion, or $1.78 per share, compared with $1.68 billion, or $1.81 per share, a year earlier. On an adjusted basis, IBM earned $2.25 per share and was ahead of the market's expectations of $2.22 per share. IBM attributed the miss in revenues to its declining hardware business and currency headwinds.
