IBM sees in low light profits fall by 21% in Q1

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IBM yesterday presented the results of its first quarter 2014 reflect a decrease in sales and profits. The first is $ 22.5 billion (-4%) and is lower than analysts' expectations. Profits meanwhile fell 21% year on year to $ 2.4 billion.

The latter figure included a charge of $ 870 million allocated to layoffs and a gain of $ 100 million for the sale of its outsourcing business customer service.

The software and services division saw its sales grow by 2%, driven mainly by the middleware. Revenues from cloud division grew 50% year over year to $ 2.3 billion. This is the hardware division that has sealed the figures with a 23% decrease in turnover.

Return to profitability by selling servers Lenovo 

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Sales System Z mainframe fell 40%, those of Power Systems 22% while those storage solutions fell 23%.

IBM relies on the sale of the business to Lenovo servers to reduce the size of the hardware business and return to profitability, especially with the launch of its Power 8 solution. In summary, the transition from Big Blue is expected to continue for several quarters. (Eureka Press)