IBM Says Mainframe Sales Down, Websphere Up in Q2

IBM announced its second-quarter income and revenues, stating that while hardware and systems revenues were down from the same time a year ago, software sales held steady or grew. 

Overall, IBM’s net income for the quarter was $3.9 billion, compared with $3.7 billion in the second quarter of 2011, an increase of 6%. Total revenues for the second quarter of 2012 of $25.8 billion were down 3% from the second quarter of 2011. Currency fluctuations negatively impacted revenue growth by approximately $1 billion.

Total systems revenues decreased 7%. Revenues from System z mainframe server products decreased 11% compared with the year-ago period. Total delivery of System z computing power, as measured in MIPS (millions of instructions per second), decreased 8%. 

Revenues from Power Systems were also down, minus 7% compared with the 2011 period. Revenues from System x were down 8%. Revenues from System Storage decreased 4%.

Revenues from the Software segment were $6.2 billion, flat compared with the second quarter of 2011. Revenues from IBM's key middleware products, which include WebSphere, Information Management, Tivoli, Lotus and Rational products, were $3.9 billion, also flat versus the second quarter of 2011. Operating systems revenues of $628 million were flat compared with the prior-year quarter.

Revenues from the WebSphere family of software products increased 3% year over year. Information Management software revenues decreased 1%. Revenues from Tivoli software increased 2%.  

Global Technology Services segment revenues decreased 2% to $10.0 billion.  Global Business Services segment revenues were down 4%, to $4.7 billion. 

For more details, visit the IBM website.