IBM Q3 results hampered by slowing hardware sales

System x, Power Systems sales continue to slide, though mainframes do well

Managing its way nimbly through times of economic sluggishness, IBM reported a 6% increase in profit for the third quarter even as its revenue declined.

IBM’s third-quarter profit was US$4.0 billion, compared to $3.8 billion in the third quarter of 2012, the company announced Wednesday. Revenue was $23.7 billion, compared to $24.7 billion in the year prior.

"In the third-quarter we continued to expand operating margins and increased earnings per share, but fell short on revenue," said Ginni Rometty, IBM chairman, president and CEO, in a statement.

 

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Most noticeably, hardware sales continued to hamper the company’s business.

Revenue from IBM’s Systems and Technology segment generated $3.2 billion in revenue, down 17% from the third quarter in 2012. System x revenue fell by 18%, Power Systems revenue fell by 38% and storage system revenue fell by 11%.

Much of the hardware decline stemmed from China, CFO Mark Loughridge said in a webcast. The Chinese government is preparing a new and comprehensive economic policy, due to be implemented in November. As a result, government agencies are delaying procurements, which hit IBM’s hardware particularly hard.

As a result, IBM’s business overall in China was down by 22%, and IBM hardware sales fell by 44%, Loughridge said. While China’s new economic plan aims to reduce its reliance on foreign suppliers, IBM doesn’t see the downturn as permanent: Sales in China should resume by early 2014, Loughridge said.

Revenue from the Americas, totalling $10.3 billion, decreased 1% from the same quarter a year ago. Revenue from Europe, the Middle East and Africa increased 1 percent to $7.3 billion, while revenue from the Asia-Pacific region declined 15 percent to $5.5 billion.

The services divisions produced middling results for the company. Revenue from the Global Technology Services segment decreased 4% to $9.5 billion for the quarter, which ended 30 September, while revenue from the Global Business Services segment was flat at $4.6 billion.

Revenue from IBM’s software segment climbed modestly to $5.8 billion, up 1% from the same quarter a year ago.

IBM is looking to the cloud for growth. In July, the company completed its purchase of cloud hosting provider SoftLayer.

Purchasing SoftLayer "significantly improved our capabilities in public and hybrid cloud," according to Loughridge. IBM’s cloud revenue was up 70% from the same quarter a year ago, the company said. "For the first time, we delivered over a billion dollars in cloud revenue," Loughridge said.

IDG News Service

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'string') { return '+1 000 000 0000'; // Default US placeholder } var mockPlaceholders = [ { countryCode: 'US', placeholder: '+1 000 000 0000', helpText: 'Include the US country code +1 before the phone number', }, { countryCode: 'GB', placeholder: '+44 0000 000000', helpText: 'Include the GB country code +44 before the phone number', }, { countryCode: 'CA', placeholder: '+1 000 000 0000', helpText: 'Include the CA country code +1 before the phone number', }, { countryCode: 'AU', placeholder: '+61 000 000 000', helpText: 'Include the AU country code +61 before the phone number', }, { countryCode: 'DE', placeholder: '+49 000 0000000', helpText: 'Fügen Sie vor der Telefonnummer die DE-Ländervorwahl +49 ein', }, { countryCode: 'FR', placeholder: '+33 0 00 00 00 00', helpText: 'Incluez le code pays FR +33 avant le numéro de téléphone', }, { countryCode: 'ES', placeholder: '+34 000 000 000', helpText: 'Incluya el código de país ES +34 antes del número de teléfono', }, { countryCode: 'NL', placeholder: '+31 0 00000000', helpText: 'Voeg de NL-landcode +31 toe vóór het telefoonnummer', }, { countryCode: 'BE', placeholder: '+32 000 00 00 00', helpText: 'Incluez le code pays BE +32 avant le numéro de téléphone', }, { countryCode: 'CH', placeholder: '+41 00 000 00 00', helpText: 'Fügen Sie vor der Telefonnummer die CH-Ländervorwahl +41 ein', }, { countryCode: 'AT', placeholder: '+43 000 000 0000', helpText: 'Fügen Sie vor der Telefonnummer die AT-Ländervorwahl +43 ein', }, { countryCode: 'IE', placeholder: '+353 00 000 0000', helpText: 'Include the IE country code +353 before the phone number', }, { countryCode: 'IT', placeholder: '+39 000 000 0000', helpText: 'Includere il prefisso internazionale IT +39 prima del numero di telefono', }, { countryCode: 'NO', placeholder: '+47 000 00 000', helpText: 'Inkluder NO landskode +47 før telefonnummeret', }, { countryCode: 'SE', placeholder: '+46 00 000 00 00', helpText: 'Inkludera SE landskod +46 före telefonnumret', }, { 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'+351 000 000 000', helpText: 'Inclua o código de país PT +351 antes do número de telefone', }, { countryCode: 'HR', placeholder: '+385 00 000 0000', helpText: 'Uključite HR pozivni broj države +385 prije telefonskog broja', }, { countryCode: 'SI', placeholder: '+386 00 000 000', helpText: 'Vključite SI kodo države +386 pred telefonsko številko', }, { countryCode: 'IS', placeholder: '+354 000 0000', helpText: 'Láttu IS landsnúmer +354 fylgja á undan símanúmerinu', }, { countryCode: 'LU', placeholder: '+352 000 000 000', helpText: 'Incluez le code pays LU +352 avant le numéro de téléphone', }, { countryCode: 'MC', placeholder: '+377 00 00 00 00', helpText: 'Incluez le code pays MC +377 avant le numéro de téléphone', }, { countryCode: 'AD', placeholder: '+376 000 000', helpText: 'Incloeu el codi de país AD +376 abans del número de telèfon', }, { countryCode: 'JE', placeholder: '+44 0000 000000', helpText: 'Include the JE country code +44 before the phone number', }, { countryCode: 'IM', placeholder: '+44 0000 000000', helpText: 'Include the IM country code +44 before the phone number', }, { countryCode: 'GG', placeholder: '+44 0000 000000', helpText: 'Include the GG country code +44 before the phone number', }, { countryCode: 'AL', placeholder: '+355 00 000 0000', helpText: 'Përfshini kodin e vendit AL +355 para numrit të telefonit', }, { countryCode: 'SM', placeholder: '+378 0000 000000', helpText: 'Includere il prefisso internazionale SM +378 prima del numero di telefono', }, { countryCode: 'FO', placeholder: '+298 000000', helpText: 'Inkluder FO landekode +298 før telefonnummeret', }, { countryCode: 'MT', placeholder: '+356 0000 0000', helpText: 'Include the MT country code +356 before the phone number', }, { countryCode: 'LI', placeholder: '+423 000 0000', helpText: 'Fügen Sie vor der Telefonnummer die LI-Ländervorwahl +423 ein', }, { countryCode: 'GI', placeholder: '+350 000 00000', helpText: 'Include the GI country code +350 before the phone number', }, { countryCode: 'MD', placeholder: '+373 00 000 000', helpText: 'Includeți codul de țară MD +373 înaintea numărului de telefon', }, { countryCode: 'HU', placeholder: '+36 00 000 0000', helpText: 'A telefonszám előtt adja meg a HU országkódot +36', }, { countryCode: 'NZ', placeholder: '+64 00 000 0000', helpText: 'Include the NZ country code +64 before the phone number', }, { countryCode: 'ME', placeholder: '+382 00 000 000', helpText: 'Uključite ME pozivni broj države +382 prije telefonskog broja', }, ]; const selectedPlaceholder = mockPlaceholders.find(function(item) { return item && item.countryCode === countryCode; }); return selectedPlaceholder ? selectedPlaceholder.placeholder : mockPlaceholders[0].placeholder; } function updatePlaceholder(countryCode, fieldName) { if (!countryCode || !fieldName) { return; } const phoneInput = document.querySelector('#mce-' + fieldName); if (!phoneInput) { return; } const placeholder = getDefaultPlaceholder(countryCode); if (placeholder) { phoneInput.placeholder = placeholder; } } function updateCountryCodeInstruction(countryCode, fieldName) { updatePlaceholder(countryCode, fieldName); } function getDefaultHelpText(countryCode) { var mockPlaceholders = [ { countryCode: 'US', placeholder: '+1 000 000 0000', helpText: 'Include the US country code +1 before the phone number', }, { countryCode: 'GB', placeholder: '+44 0000 000000', helpText: 'Include the GB country code +44 before the phone number', }, { countryCode: 'CA', placeholder: '+1 000 000 0000', helpText: 'Include the CA country code +1 before the phone number', }, { countryCode: 'AU', placeholder: '+61 000 000 000', helpText: 'Include the AU country code +61 before the phone number', }, { countryCode: 'DE', placeholder: '+49 000 0000000', helpText: 'Fügen Sie vor der Telefonnummer die DE-Ländervorwahl +49 ein', }, { countryCode: 'FR', placeholder: '+33 0 00 00 00 00', helpText: 'Incluez le code pays FR +33 avant le numéro de téléphone', }, { countryCode: 'ES', 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}, { countryCode: 'SE', placeholder: '+46 00 000 00 00', helpText: 'Inkludera SE landskod +46 före telefonnumret', }, { countryCode: 'DK', placeholder: '+45 00 00 00 00', helpText: 'Inkluder DK landekode +45 før telefonnummeret', }, { countryCode: 'FI', placeholder: '+358 00 000 0000', helpText: 'Sisällytä FI-maakoodi +358 ennen puhelinnumeroa', }, { countryCode: 'EE', placeholder: '+372 0000 0000', helpText: 'Lisage EE riigikood +372 telefoninumbri ette', }, { countryCode: 'PL', placeholder: '+48 000 000 000', helpText: 'Podaj numer kierunkowy PL +48 przed numerem telefonu', }, { countryCode: 'SK', placeholder: '+421 000 000 000', helpText: 'Pred telefónne číslo uveďte kód krajiny SK +421', }, { countryCode: 'LV', placeholder: '+371 0000 0000', helpText: 'Iekļaujiet LV valsts kodu +371 pirms tālruņa numura', }, { countryCode: 'LT', placeholder: '+370 0000 0000', helpText: 'Įtraukite LT šalies kodą +370 prieš telefono numerį', }, { countryCode: 'GR', placeholder: '+30 000 000 0000', helpText: 'Συμπεριλάβετε τον κωδικό χώρας GR +30 πριν από τον αριθμό τηλεφώνου', }, { countryCode: 'PT', placeholder: '+351 000 000 000', helpText: 'Inclua o código de país PT +351 antes do número de telefone', }, { countryCode: 'HR', placeholder: '+385 00 000 0000', helpText: 'Uključite HR pozivni broj države +385 prije telefonskog broja', }, { countryCode: 'SI', placeholder: '+386 00 000 000', helpText: 'Vključite SI kodo države +386 pred telefonsko številko', }, { countryCode: 'IS', placeholder: '+354 000 0000', helpText: 'Láttu IS landsnúmer +354 fylgja á undan símanúmerinu', }, { countryCode: 'LU', placeholder: '+352 000 000 000', helpText: 'Incluez le code pays LU +352 avant le numéro de téléphone', }, { countryCode: 'MC', placeholder: '+377 00 00 00 00', helpText: 'Incluez le code pays MC +377 avant le numéro de téléphone', }, { countryCode: 'AD', placeholder: '+376 000 000', helpText: 'Incloeu el codi de país AD +376 abans del número de telèfon', }, { countryCode: 'JE', placeholder: '+44 0000 000000', helpText: 'Include the JE country code +44 before the phone number', }, { countryCode: 'IM', placeholder: '+44 0000 000000', helpText: 'Include the IM country code +44 before the phone number', }, { countryCode: 'GG', placeholder: '+44 0000 000000', helpText: 'Include the GG country code +44 before the phone number', }, { countryCode: 'AL', placeholder: '+355 00 000 0000', helpText: 'Përfshini kodin e vendit AL +355 para numrit të telefonit', }, { countryCode: 'SM', placeholder: '+378 0000 000000', helpText: 'Includere il prefisso internazionale SM +378 prima del numero di telefono', }, { countryCode: 'FO', placeholder: '+298 000000', helpText: 'Inkluder FO landekode +298 før telefonnummeret', }, { countryCode: 'MT', placeholder: '+356 0000 0000', helpText: 'Include the MT country code +356 before the phone number', }, { countryCode: 'LI', placeholder: '+423 000 0000', helpText: 'Fügen Sie vor der Telefonnummer die LI-Ländervorwahl +423 ein', }, { countryCode: 'GI', placeholder: '+350 000 00000', helpText: 'Include the GI country code +350 before the phone number', }, { countryCode: 'MD', placeholder: '+373 00 000 000', helpText: 'Includeți codul de țară MD +373 înaintea numărului de telefon', }, { countryCode: 'HU', placeholder: '+36 00 000 0000', helpText: 'A telefonszám előtt adja meg a HU országkódot +36', }, { countryCode: 'NZ', placeholder: '+64 00 000 0000', helpText: 'Include the NZ country code +64 before the phone number', }, { countryCode: 'ME', placeholder: '+382 00 000 000', helpText: 'Uključite ME pozivni broj države +382 prije telefonskog broja', }, ]; if (!countryCode || typeof countryCode !== 'string') { return mockPlaceholders[0].helpText; } const selectedHelpText = mockPlaceholders.find(function(item) { return item && item.countryCode === countryCode; }); return selectedHelpText ? selectedHelpText.helpText : mockPlaceholders[0].helpText; } function setDefaultHelpText(countryCode) { const helpTextSpan = 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: false; var shouldAppendCountryCode = smsNotRequiredRemoveCountryCodeEnabled ? isRequired : true; var phoneInput = document.querySelector('#mce-' + fieldName); if (phoneInput && defaultProgram.countryCallingCode && shouldAppendCountryCode) { phoneInput.value = defaultProgram.countryCallingCode; } displayFlag?.addEventListener('click', function(e) { dropdown.focus(); }); dropdown?.addEventListener('change', function() { const selectedCountry = this.value; if (!selectedCountry || typeof selectedCountry !== 'string') { return; } const flagSpan = displayFlag?.querySelector('#flag-emoji-' + fieldName); if (flagSpan) { flagSpan.textContent = getCountryUnicodeFlag(selectedCountry); flagSpan.setAttribute('aria-label', sanitizeHtml(selectedCountry) + ' flag'); } const selectedProgram = window.MC?.smsPhoneData?.programs.find(function(program) { return program && program.countryCode === selectedCountry; }); var smsNotRequiredRemoveCountryCodeEnabled = true; var smsField = Object.values({"EMAIL":{"name":"EMAIL","label":"Email Address","helper_text":"","type":"email","required":true,"audience_field_name":"Email Address","merge_id":0,"help_text_enabled":false,"enabled":true,"order":0,"field_type":"merge"},"FNAME":{"name":"FNAME","label":"First Name","helper_text":"","type":"text","required":false,"audience_field_name":"First Name","enabled":false,"order":null,"field_type":"merge","merge_id":1},"MMERGE2":{"name":"MMERGE2","label":"Second Name","helper_text":"","type":"text","required":false,"audience_field_name":"Second Name","enabled":false,"order":null,"field_type":"merge","merge_id":2},"MMERGE3":{"name":"MMERGE3","label":"Company Name","helper_text":"","type":"text","required":false,"audience_field_name":"Company Name","enabled":false,"order":null,"field_type":"merge","merge_id":3},"MMERGE4":{"name":"MMERGE4","label":"Job Title","helper_text":"","type":"text","required":false,"audience_field_name":"Job 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fieldName); updateCountryCodeInstruction(selectedCountry, fieldName); }); } document.addEventListener('DOMContentLoaded', function() { const smsPhoneFields = document.querySelectorAll('[id^="country-select-"]'); smsPhoneFields.forEach(function(dropdown) { const fieldName = dropdown?.id.replace('country-select-', ''); initializeSmsPhoneDropdown(fieldName); }); });

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