SAN FRANCISCO (AFP) – IBM reported on Monday that revenue slipped for the third consecutive quarter this year, causing shares to cede a little ground in after-market trades.
The United States (US) technology veteran said it took in USD17.6 billion during the three months that ended on September 30, compared to USD18 billion in the same period a year earlier. Net income, however, was up slightly to USD1.7 billion as the company trimmed costs, according to the earnings report. IBM shares were down 2.6 per cent in after-market trades.
The New York-based company spotlighted growth in its cloud computing business, which saw overall revenue climb some 19 per cent to USD6 billion.
“The strong performance of our cloud business, led by Red Hat, underscores the growing client adoption of our open hybrid cloud platform,” said IBM Chief Executive Arvind Krishna.
IBM last year closed its USD34 billion-deal to buy enterprise software company Red Hat.
The group recently unveiled a corporate reorganisation to allow it to focus on cloud computing, spinning off its division for managed infrastructure.
By separating its managed infrastructure services business, IBM is sharpening focus on its offerings in a ‘hybrid cloud’ market valued at a trillion dollars, according to Krishna.
Hybrid cloud offerings combine data centre capabilities tapped into online with private computer systems at businesses.
The spin-off will create two separate, publicly traded firms by the end of 2021, according