IBM Reports Tough Year, Mainframe Revenues Down in Most Recent Quarter

IBM reported a difficult year for the 12-month period ended December 31, 2013. Overall revenues for 2013 totaled $99.8 billion, a decrease of 5% from $104.5 billion in 2012.

Systems and Technology segment revenues were $14.4 billion for the year 2013, a decrease of 19%. (IBM did not provide yearly breakdowns for individual product lines within the segment.) Software segment revenues fared a little better, totaling $25.9 billion, an increase of 2%.  Revenues from the Global Technology Services segment totaled $38.6 billion, a decrease of 4% compared with 2012. 

For the fourth quarter of the 2013 fiscal year, the company reported revenues of $27.7 billion, down 5% from the same time one year ago. Mainframe sales were weak during this time. Revenues from System z mainframe server products decreased 37% compared with the year-ago period. Total delivery of System z computing power, as measured in MIPS (millions of instructions per second), decreased 26% versus the prior year.

IBM's server sales were weak across the board. Revenues from Power Systems decreased 31% compared with the 2012 period. Revenues from System x decreased 16%. Revenues from System Storage decreased 13%. Revenues from Microelectronics OEM decreased 33%.

Revenues from the Systems and Technology segment totaled $4.3 billion for the quarter, down 26% from the fourth quarter of 2012.

Software was a stronger story for IBM in the final quarter of 2013. Revenues from the Software segment were $8.1 billion, an increase of 3% from the fourth quarter of 2012. Revenues from IBM’s key middleware products, which include WebSphere, Information Management, Tivoli, Social Workforce Solutions and Rational products, were $5.8 billion, an increase of 5% versus the fourth quarter of 2012. Operating systems revenues of $687 million were down 3%, adjusting for currency) compared with the prior-year quarter.

Revenues from the WebSphere family of software products increased 14% year over year. Information Management software revenues increased 5%. Revenues from Tivoli software increased 1%. Revenues from Social Workforce Solutions increased 2%, and Rational software was flat.

For more details, visit the IBM website.