IBM Reports Consolidated Net Income of $18m in 3Q2014

IBM has announced third-quarter 2014 diluted earnings from continuing operations of US$3.46 per share, compared with diluted earnings of US$3.77 per share in the third-quarter of 2013, a decrease of 8%.

Operating (non-GAAP) diluted earnings from continuing operations were US$3.68 per share compared with operating diluted earnings of US$4.08 per share in the third-quarter of 2013, a decrease of 10%.

Third-quarter net income from continuing operations was US$3.5 billion compared with US$4.1 billion in the third-quarter of 2013, a decrease of 17%.

Operating (non-GAAP) net income from continuing operations was US$3.7 billion, as compared with US$4.5 billion in the third-quarter of 2013, a decrease of 18%.

For the third-quarter of 2014, IBM reported consolidated net income of US$18 million, which includes a net loss from discontinued operations of US$3.4 billion.

Total revenues from continuing operations for the third-quarter of 2014 of US$22.4 billion were down 4% (down 2%, adjusting for the impact of the divested customer care outsourcing business and for currency) from the third-quarter of 2013. 

“We are disappointed in our performance.  We saw a marked slowdown in September in client buying behaviour, and our results also point to the unprecedented pace of change in our industry. 

"While we did not produce the results we expected to achieve, we again performed well in our strategic growth areas – cloud, data and analytics, security, social and mobile - where we continue to shift our business.  We will accelerate this transformation,” said Ginni Rometty, IBM chairman, president and chief executive officer.