International Business Machines Corporation (NYSE:IBM) has reported another drop in quarterly revenues for its fourth quarter. The drop in revenues was even more than expected and shares of IBM fell in Tuesday’s after-hours trading. Senior executives have decided to forego their bonuses for the year.
Net income for the quarter ended December 31, 2013 was $6.2 billion, or $5.73 per diluted share, compared to $5.8 billion, or $5.13 per diluted share, in the fourth quarter of fiscal 2012.
Total revenue of $27.7 billion was down 5.5 percent from last year’s $29.3 billion.
IBM’s hardware revenues of $4.3 billion were down 26 percent from the 2012 quarter, as customers shift to new technologies and services such as cloud computing.
This was exacerbated by woes in the Asia-Pacific region, where revenues of $5.9 billion were down 16 percent (down 6 percent adjusting for currency). Demand is lagging in China, and the weakening yen also had a big impact on reported (i.e., GAAP) revenues.
Net income for the full year was $16.5 billion, or $14.94 per diluted share, compared to $16.6 billion, or $14.37 per diluted share, in 2012.
Total revenue of $99.8 billion was down 4.6 percent from last year’s $104.5 billion.
IBM expects that its GAAP earnings per share for 2014 will be at least $17.00.
IBM chairman, president and chief executive officer Ginni Rometty commented: “We continued to drive strong results across much of our portfolio and again grew earnings per share in 2013. While we made solid progress in businesses that are powering our future, in view of the company’s overall full year results, my senior team and I have recommended that we forgo our personal annual incentive payments for 2013.”
”As we enter 2014, we will continue to transform our business and invest aggressively in the areas that will drive growth and higher value. We remain on track toward our 2015 roadmap for operating EPS of at least $20, a step in our long-term strategy of industry leadership and continuous transformation.””