IBM revenue plunges 3.3% in Q2 FY12, Asia-Pacific rises

Telecom Lead America: IBM has posted consolidated
revenues of $25.8 billion for the second quarter of 2012, down 3.3 percent, as
compared to $26.7 billion for the same quarter a year earlier.

Net income for the second-quarter net income was $3.9 billion,
up 6 percent, as compared with $3.7 billion in the second quarter of 2011.

Region-wise, Asia-Pacific revenues grew 2 percent to
reach at $6.3 billion. However, IBM’s OEM revenues stood at $512 million, down
24 percent compared with the 2011 second quarter.

Americas fetched revenues of $11.1 billion, a down 1
percent, as compared with revenues a year earlier. Revenues from Europe/Middle
East/Africa were $7.9 billion, down 9 percent.

Revenues in the BRIC countries that are Brazil,
Russia, India and China increased 5 percent. On the other hand, IBM’s
growth markets increased 2 percent and more than 30 countries had double-digit
revenue growth, the official release read.

The company’s global Technology Services business plunged
2.4 percent at $9.99 billion in the Q2 FY12, as compared to $10.2 billion a
year earlier. Global Business Services segment down by 4.1 percent at $4.6
billion, as compared to $4.86 billion for the Q2 FY12.

In the second quarter, we delivered strong profit,
earnings per share and free cash flow growth. This performance reflects
continued strength in our growth initiatives and investments in higher value
opportunities. These are fundamental elements of our long-term business model,”
said Ginni Rometty, president and chief executive officer at IBM.

IBM”s software business posted flat revenues at $6.17
billion for the Q2 FY12, against $6.16 billion a year ago. System and
Technology (Hardware) segment revenue plunged by 9 percent at $4.2 billion,
against $4.6 billion in Q2 FY11.

Looking ahead, we are well positioned to deliver greater
value to a wider range of clients and to our shareholders. Given our
performance in the first half and our outlook for the second half, we are
raising our full-year operating earnings per share expectations to at least
$15.10,” Rometty added.

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