System z Sales a Bright Spot in Big Blue's Mixed Financial Picture

IBM's first-quarter 2013 revenues slipped across many categories, but its mainframe sales were healthy. The vendor's net income for the quarter was $3.0 billion, down 1% from the first quarter of 2012. Total revenues for the first quarter totaled $23.4 billion, down 5%.

While total systems revenues decreased 13%, revenues from System z mainframe server products increased 7% compared with the year-ago period. Total delivery of System z computing power, as measured in MIPS (millions of instructions per second), increased 27%. Revenues from Power Systems were down 32% compared with the 2012 period. Revenues from System x were down 9%.  Revenues from System Storage decreased 11%.

Revenues from the software segment were flat at $5.6 billion, compared with the first quarter of 2012. Software pre-tax income increased 4% and pre-tax margin increased to 31.5%.

Revenues from the WebSphere family of software products increased 6% year over year.  Information Management software revenues decreased 2%.  Revenues from Tivoli software increased 1%. Revenues from Social Workforce Solutions (formerly Lotus) software increased eight percent, and Rational software decreased 2%. Operating systems revenues of $578 million were down2%, compared with the prior-year quarter.

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