IBM records dip in Profits, Lowers Estimate for Full Year

International Business Machines (IBM) Corp reported a dip of nearly 4% in the shares. The company suffered losses in the third fiscal quarter and also reduced its estimation for rest of the year.

During the quarter that ended September, IBM’s revenue went down by 14% on a year on year basis to $19.3 billion. This record was lower than the estimated $19.63 billion scale.

The Software revenue for IBM amounted to $5.1 billion showcasing a dip of about 10%. The revenue fall was noted in segments of Middleware products including WebSphere, Information Management, Tivoli, Workforce Solutions and Rational products

The company’s total revenue from Middleware products turned out to be $3.4 billion showing a decline of 7% on a year on year basis.

IBM’s revenue in the operating systems segment also went down by 14% since last year. The revenue cloud scale, meanwhile, increased by about 65% turning out to be $9.4 billion.

The Global Technology Services recorded a revenue fall by 10% to $7.9 billion. The revenue for Global Business Services segment, meanwhile, went down by 13% to $4.2 billion.

Until September 30, IBM’s services backlog remained stagnant at $118 billion reflecting a 1% upsurge third quarter of 2014.

Overall, the profit share for the company went down by 9% on a year on year basis to $3.34 per share.

"In the third quarter we again made progress in the transformation of our business to higher value, with strong growth in our strategic imperatives and expanded operating margins,” said Ginni Rometty, IBM chairman, president and chief executive officer.