New Delhi: The one of the leading tech firms, IBM has reported its worst quarterly revenue in 14 years. The revenue fell 4.6% to $18.68 billion in Q1, a 16th straight quarter of revenue decline for IBM. However, revenue in the company’s newer businesses is failing to make up for declines in its traditional segments.
Under chief executive Ginni Rometty, IBM has been moving towards areas such as cloud-based services, security software and data analytics, while trimming its traditional hardware business by exiting low-margin businesses. The company maintained its full-year adjusted earnings guidance of at least $13.50 per share. Analysts on average were expecting $13.55, according to Thomson Reuters.
The company received a $1 billion refund in the quarter that lowered its effective tax rate to a negative 95.1 per cent compared with 19.5 per cent last year. But revenue from the services and hardware segments fell 4.3 per cent and 21.8 per cent, respectively, in the quarter. Excluding items, IBM earned $2.35 per share, beating the average analyst estimate of $2.09.