Software giant IBM posts steep drop in revenue in third quarter but its cloud sales are growing
IBM's revenue slumped 14 per cent to $19.3bn (£12.4) in the three months to September compared with the same period last year. It marks the 14th consecutive quarter of falling sales for the tech giant.
Earnings per share was down nine per cent to $3.34.
"In the third quarter we again made progress in the transformation of our business to higher value, with strong growth in our strategic imperatives and expanded operating margins,” said Ginni Rometty, IBM chairman, president and chief executive officer.
"We are continuing to make significant investments to build platforms around analytics, cloud, mobility and security that lay the foundation for a new era of cognitive business — where we see long-term value for our clients and shareholders."
The company is currently in a transition away from its low profit cash register business toward cloud computing. It recently appointed ex-Thomas Cook boss Harriet Green to lead two divisions to “apply the company’s considerable strengths in Big Data, advanced analytics and cognitive computing”.
IBM's revenue from cloud was up more than 65 per cent year-to-date after adjusting for fluctuating exchange rates. It has raked in $9.4bn over the last 12 months from its cloud services.