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Mainframes, Enterprise Software Were Strongest Performers in IBM's Second Quarter


IBM's second-quarter 2013 results were lower across the board, with the exception of its mainframe and enterprise software units. The computer giant reports net income of $3.2 billion for the most recent quarter, compared with $3.9 billion for the same quarter last year – a decrease of 17%. Total revenues for the second quarter of 2013 totaled $24.9 billion, down 3% from the second quarter of 2012. IBM took a $1-billion charge for what it called “workforce rebalancing” – cutbacks and layoffs across its global workforce.

Overall, revenues from IBM's Systems and Technology segment totaled $3.8 billion

for the quarter, down 12 percent from the second quarter of 2012. Systems and Technology pre-tax income decreased $375 million. Revenues from Power Systems were down 25%compared with the 2012 period. Revenues from System x were down 11%.  Revenues from System Storage decreased 7%. Revenues from Microelectronics OEM increased 6%.

Revenues from the IBM's Software segment were $6.4 billion, up four percent compared with the second quarter of 2012. Software pre-tax income increased six percent and pre-tax margin increased to 37.2%.

Revenues from IBM's key middleware products, which include WebSphere, Information Management, Tivoli, Social Workforce Solutions (formerly Lotus) and Rational products, were $4.3 billion, up 9% versus the second quarter of 2012.

Operating systems revenues of $606 million were down 4%, adjusting for currency) compared with the prior-year quarter.

Revenues from the WebSphere family of software products increased nine percent year over year. Information Management software revenues increased 5%.Revenues from Tivoli software increased 13%. Revenues from Social Workforce Solutions increased 22%, and Rational software increased 12%.

More information is available at IBM's website.


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