Revenues at IBM drop by more than expected
International Business Machines last night posted a bigger-than-expected drop in revenue and cut its full-year profit forecast.
This comes after a stronger US dollar accentuated weakness in demand from China and emerging markets.
It is the 14th quarter in a row that IBM has posted a reduction in revenue.
The world’s largest technology services company is in the middle of getting rid of low-margin businesses, but has failed to make up the shortfall with newer initiatives.
IBM, which gets more than half its business from overseas, said overall revenue from continuing operations was cut 9% by a strong US dollar, which is up about 17% from a year ago against a basket of currencies.
The company’s total revenue fell 13.9% to $19.28 billion in the quarter, below analysts’ average forecast of $19.62 billion.
