IBM's profits fell sharply in the third quarter: the declines in sales in various divisions weighed on the accounts of the US giant. Specifically, IBM has already said it will transfer its semiconductor assets to Globalfoundries, paying $1,5 billion just to get rid of these loss-making assets. Bottom line: The group reported profits of $18 million, 2 cents a share, versus $4,04 billion, $3,68 a share, in the same period last year. Excluding exceptional items, earnings would be $3,68 per share. Revenue fell from $23,3 billion to $22,4 billion. Analysts were expecting earnings per share of $4,31 on revenue of $23,37 billion.
“We are disappointed with the performance. There was a slowdown in the market in September and a change in buyer behavior,” Chief Executive Ginni Rometty said. IBM did not see revenue growth for ten consecutive quarters and, in the three months ended September, global services revenue fell 3%, software revenue fell 0,4%, while systems and technology segment fell 14%.
