Big Blue’s ‘transformation’ continues to be work in progress as revenue and profits fall once again
IBM’s management team have talked up the firm’s cloud and cognitive solutions, but the cold hard light of Wall Street’s fiscal scrutiny has revealed another quarterly decline in both sales and profits.
IBM is a company attempting to reinvent itself in the face of ongoing pressure from decreasing hardware and stagnating software earnings.
Indeed, chairman, president and chief executive officer Ginni Rometty has previously acknowledged that the company is shrinking “by design”, as part of its refocusing on the cloud and analytics.
But the first quarter earnings revealed that IBM’s corporate ‘transformation to higher value’ continues to take a toll on Big Blue.
For the three months ending 31 March, it had posted net income of $1.7 billion (£1.4bn), down from $2 billion (£1.6bn) in the same year-ago quarter.