IBM Reports Slow Quarter; System z Revenues Down 20%

IBM announced a tough third-quarter 2012, with revenues down across most sectors, with the exception of Websphere. For the quarter, IBM saw $3.8 billion in net profit on total revenues of $24.7 billion. The company's revenues were down 5% from the third quarter of 2011. Currency negatively impacted revenue growth by nearly $1 billion, the company adds.

Revenues from System z mainframe server products decreased 20% compared with the year-ago period. Total delivery of System z computing power, as measured in MIPS (millions of instructions per second), decreased 2%.

Overall revenues from the Systems and Technology segment totaled $3.9 billion for the quarter, down 13% from the third quarter of 2011. Total systems revenues decreased 8%. Revenues from Power Systems were down 2%, compared with the 2011 period. Revenues from System x were down 5%. Revenues from System Storage decreased 10%.

Revenues from the Software segment were $5.8 billion, down 1%, compared with the third quarter of 2011. Revenues from IBM’s key middleware products, which include WebSphere, Information Management, Tivoli, Lotus and Rational products, were $3.6 billion, down 1% versus the third quarter of 2011. Operating systems revenues of $597 million were flat compared with the prior-year quarter.

Revenues from the WebSphere family of software products increased 2% year over year. Information Management software revenues decreased 1%. Revenues from Tivoli software increased 5%. Revenues from Lotus software decreased 10%, and Rational software decreased 16%.

Global Technology Services segment revenues decreased 4% to $9.9 billion. Global Business Services segment revenues were down 6% to $4.5 billion.

More details are available at the IBM website.