Revenues are Down in IBM’s Third Quarter, But Mainframe Business Keeps Growing

IBM announced third-quarter 2013 results, with total revenues for the third-quarter of 2013 of $23.7 billion, down 4% from the third-quarter of 2012. However, the vendor's mainframe sales were up, outpacing most other lines.

Revenues from System z mainframe server products increased 6% compared with the year-ago period. Total delivery of System z computing power, as measured in MIPS (millions of instructions per second), increased 56%.  Overall, however, total systems revenues decreased 19%. Revenues from Power Systems were down 38% compared with the 2012 period. Revenues from System x were down 18%. Revenues from System Storage decreased 11%. Revenues from Microelectronics OEM increased 1%.

Revenues from the Software segment were $5.8 billion, up 1% from the third-quarter of 2012. Revenues from IBM’s key middleware products, which include WebSphere, Information Management, Tivoli, Social Workforce Solutions and Rational products, were $3.7 billion, up 3%, versus the third-quarter of 2012. Operating systems revenues of $576 million were down 4% (down 2%, adjusting for currency) compared with the prior-year quarter.

Revenues from the WebSphere family of software products were flat year over year.  Information Management software revenues increased 2%. Revenues from Tivoli software increased two percent. Revenues from Social Workforce Solutions increased 14%, and Rational software increased 12%.

So far in fiscal year 2013, revenues for the nine-month period ended September 30, 2013 totaled $72.1 billion, a decrease of four percent compared with $75.2 billion for the nine months of 2012. Net income for the nine months was $10.3 billion compared with $10.8 billion in the year-ago period, also a decrease of 4% IBM said.

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