IBM announced second-quarter 2014 net income of $4.1 billion, compared with $3.2 billion in the second quarter of 2013, an increase of 28%. Total revenues for the second quarter of 2014 of $24.4 billion were down 2% from the second quarter 2013.
Net income for the 6 months ended June 30, 2014 was $6.5 billion compared with $6.3 billion in the year-ago period, an increase of 4%. Revenues for the 6-month period totaled $46.8 billion, a decrease of 3%, compared with $48.3 billion for the first six months of 2013.
Total systems revenues decreased 11%. Revenues from System z mainframe server products, in the seventh quarter since they were announced, decreased 1% compared with the year-ago period. Total delivery of System z computing power, as measured in MIPS (millions of instructions per second), was flat.
Overall revenues from the Systems and Technology segment totaled $3.3 billion for the quarter, down 11% (down 12%, adjusting for currency) from the second quarter of 2013. Systems and Technology segment pre-tax income increased $0.2 billion, including the impact of a $0.2 billion workforce rebalancing charge in the prior year. Revenues from Power Systems were down 28% compared with the 2013 period. Revenues from System x were down 3%. Revenues from System Storage decreased 12% and within this business area, flash storage grew more than 100%. Revenues from Microelectronics OEM decreased 18%.
“In the second quarter, we made further progress on our transformation,” said Ginni Rometty, IBM chairman, president and chief executive officer, in a statement released by the company. “We performed well in our strategic imperatives around cloud, big data and analytics, security and mobile.”
Revenues from the Software segment were $6.5 billion, up 1% compared with the second quarter of 2013. Software pre-tax income increased 10% and pre-tax margin increased to 36.5%, including the impact of a $0.2 billion workforce rebalancing charge in the prior year. Revenues from IBM’s key middleware products, which include WebSphere, Information Management, Tivoli, Workforce Solutions and Rational products, were $4.3 billion, up 1% versus the second quarter of 2013. Operating systems revenues of $530 million were down 13% compared with the prior-year quarter.
Global Services segment revenues decreased 1% to $13.9 billion. Revenues increased 1% adjusting for the impact of the divested customer care outsourcing business. Global Technology Services segment revenues decreased 1% to $9.4 billion. Adjusting for the impact of the divested customer care outsourcing business, revenues were up 2%. Global Business Services segment revenues were down 2% to $4.5 billion.
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