IBM revenue falls short of expectations, shares fall
Credit: Reuters/China Daily
Visitors walk past the IBM booth at the 9th China International Software Product & Information Service Expo in Nanjing, Jiangsu province September 6, 2013.
The company's shares fell 2 percent to $184.39 in after-hours trade.
Revenue fell 5 percent to $27.7 billion in the fourth quarter, missing analysts expectation of $28.25 billion, according to Thomson Reuters I/B/E/S.
This is the fourth straight quarter that the company's revenue has fallen short of analysts' targets.
'In view of the company's overall full-year results, my senior team and I have recommended that we forgo our personal annual incentive payments for 2013,' Chief Executive Ginni Rometty said in a statement.
Revenue from its system and technology unit, which includes servers and storage, fell 26.1 percent to $4.26 billion. Revenue from global technology services, its largest business, fell 3.6 percent to $9.92 billion.
Software revenue was the only bright spot growing 2.8 percent to $8.14 billion.
IBM has been moving steadily into higher-margin businesses such as software and cloud computing as it is struggling to sustain growth through its emerging markets business.
IBM expects a full-year adjusted profit of at least $18 per share, above analysts' expectations of $17.97 per share.
Net income for the fourth quarter rose to $6.2 billion, or $5.73 a share, from $5.8 billion, or $5.13 per share a year earlier.
On an adjusted basis, it earned $6.13 per share, above analysts' estimates of $5.99 per share.
The stock closed at $188.43 on Tuesday on the New York Stock Exchange. The stock has gained about 2 percent since it reported third-quarter results in October.
(Reporting by Supantha Mukherjee and Soham Chatterjee; Editing by Savio D'Souza)
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