HONG KONG: Technology heavyweight IBM reported lower profits in the first quarter following another drop in revenues, this time partly due to the strong US dollar.
Earnings for the first quarter slipped by 2.4 percent to US$2.3 billion, while revenues dropped by 11.9 percent to US$19.59 billion.
Profits translated to US$2.91 per share, nine cents above analysts’ forecasts. But revenues lagged projections of US$19.73 billion.
“Our focus on higher value through portfolio transformation and investment in key areas of the business drove continued margin expansion,” said IBM chief executive Ginni Rometty in a statement after US markets closed.
IBM said efforts to build new businesses linked to cloud computing, mobile technology and data analysis were making progress. Cloud revenue was up by more than 60 percent.
But revenues across the company continued to be challenged, falling for the 12th straight quarter.
Services revenue fell by 12 percent, software revenues dropped eight percent and hardware revenues sank 23 percent. However, revenues were flat excluding currency changes and the impact of divestitures, IBM said.
IBM shares gained by 0.3 percent to US$166.65 in after-hours trade.
