https://www.channelfutures.com/wp-content/themes/channelfutures_child/assets/images/logo/footer-new-logo.png
  • Home
  • Technologies
    • Back
    • Analytics
    • Artificial Intelligence
    • Cloud
    • Data Centers
    • Desktop
    • IoT
    • Mobility
    • Networking
    • Open Source
    • RMM/PSA
    • Security
    • Virtualization
    • Voice/Connectivity
  • Strategy
    • Back
    • Best Practices
    • Business Models
    • Channel 101
    • Channel Programs
    • Channel Research
    • Digital Transformation
    • Diversity & Inclusion
    • Leadership
    • Mergers and Acquisitions
    • Sales & Marketing
    • Specialty Practices
  • MSSP Insider
    • Back
    • Business of Security
    • Cloud and Edge
    • Endpoint
    • Network
    • People and Careers
    • Training and Policies
  • MSP 501
    • Back
    • 2020 MSP 501 Rankings
    • 2020 Hot 101 Rankings
    • 2020 MSP 501 Report
  • Intelligence
    • Back
    • Our Sponsors
    • From the Industry
    • Content Resources
    • COVID-19 Partner Help
    • Galleries
    • Podcasts
    • Reports
    • Videos
    • Webinars
    • White Papers
  • EMEA
  • Awards
    • Back
    • Excellence in Digital Services
    • 2020 MSP 501
    • Top Gun 51
  • Events
    • Back
    • CP Conference & Expo
    • Channel Partners Evolution
    • Channel Evolution Europe
    • Channel Partners Event Coverage
    • Webinars
  • Channel Mentor
    • Back
    • Channel Market Intelligence
    • Channel Educational Series
Channel Futures
  • NEWSLETTER
  • Home
  • Technologies
    • Back
    • Analytics
    • Artificial Intelligence
    • Cloud
    • Data Centers
    • Desktop
    • IoT
    • Mobility
    • Networking
    • Open Source
    • RMM/PSA
    • Security
    • Virtualization
    • Voice/Connectivity
  • Strategy
    • Back
    • Best Practices
    • Business Models
    • Channel 101
    • Channel Programs
    • Channel Research
    • Digital Transformation
    • Diversity & Inclusion
    • Leadership
    • Mergers and Acquisitions
    • Sales & Marketing
    • Specialty Practices
  • MSSP Insider
    • Back
    • Business of Security
    • Cloud and Edge
    • Endpoint
    • Network
    • People and Careers
    • Training and Policies
  • MSP 501
    • Back
    • 2020 MSP 501 Rankings
    • 2020 Hot 101 Rankings
    • 2020 MSP 501 Report
  • Intelligence
    • Back
    • Our Sponsors
    • From the Industry
    • Content Resources
    • COVID-19 Partner Help
    • Galleries
    • Podcasts
    • Reports
    • Videos
    • Webinars
    • White Papers
  • EMEA
  • Awards
    • Back
    • Excellence in Digital Services
    • 2020 MSP 501
    • Top Gun 51
  • Events
    • Back
    • CP Conference & Expo
    • Channel Partners Evolution
    • Channel Evolution Europe
    • Channel Partners Event Coverage
    • Webinars
  • Channel Mentor
    • Back
    • Channel Market Intelligence
    • Channel Educational Series
    • Newsletter
  • REGISTER
  • MSPs
  • VARs / SIs
  • Digital Service Providers
  • Cloud Service Providers
  • CHANNEL PARTNERS ONLINE
 Channel Futures

Sales & Marketing


IBM Q2 Revenue, Earnings Slide, Key Segments Grow

  • Written by DH Kass 1
  • July 19, 2013

IBM (IBM) recorded $24.9 billion in sales for Q2 2013, a 3 percent year-over-year slide and less than analysts’ $25.4 billion forecast, and took in $3.2 billion ($2.91 per share), a 17 percent tumble from the same period last year. That number factored in a $1 billion charge the vendor took for layoffs it began in June.

IBM (IBM) recorded $24.9 billion in sales for Q2 2013, a 3 percent year-over-year slide and less than analysts’ $25.4 billion forecast, and took in $3.2 billion ($2.91 per share), a 17 percent tumble from the same period last year. That number factored in a $1 billion charge the vendor took for layoffs it began in June.

The number that stuck out for the period, however, was IBM’s operating earnings, which climbed to $4.3 billion, or $3.91 a share, a 3 percent uptick and well above analysts’ projections of $3.77 a share. The number didn’t include the workforce reduction charge.

The earnings increase may have been behind the stock’s 70 cents-per-share rise to close the trading day at $194.55 and another 2.6 percent added on in after-hours trading.

In its below-par Q1 2013 performance, IBM showed vulnerability to a listless economy and a reluctant hardware market, factors that continued to plague the vendor in Q2. While sales in key segments of its business such as its software, business analytics and cloud revenue rose encouragingly, its old-line systems and technology business still suffered.

Key results include:

Rising

  • Software revenue up 4 percent
  • Branded middleware up 9 percent
  • Services backlog of $141 billion, up 3 percent
  • System z mainframe revenue up 10 percent
  • Business analytics revenue up 11 percent
  • Smarter Planet revenue up more than 25 percent in first half
  • Cloud revenue up more than 70 percent in first half

Flat or declining

  • Services revenue down 4 percent
  • Global Business Services revenue down 1 percent
  • Systems and Technology revenue down 12 percent
  • Growth markets revenue flat

IBM chief Ginny Rometty’s public response to the vendor’s Q2 performance was much the same as her Q1 reaction, as she vowed to emphasize its strong areas and fix its weaker ones.

“Going forward, we will continue investing in our strategic growth initiatives, acquiring and divesting capabilities, rebalancing skills and taking action in the areas that are not performing,” she said.

In the wake of its poor Q1 results—when the vendor recorded revenue of $23.4 billion, down 5 percent from last year, and a 1 percent slide in net income to $3 billion or $3 per share—Rometty responded to a 17 percent downturn in hardware sales by assigning a new head of IBM’s Systems and Technology group, moving out Rod Atkins and moving in former corporate strategy senior vice president Tom Rosamilia, and issuing layoffs to some 1,700 employees, a figure that eventually could go as high as 8,000.

In addition, she called an all-hands-on deck meeting in which she chastised the company’s rank and file to “step up” and do better.

So far, this time around there’s been none of that. In fact, IBM buoyed analysts’ expectations by raising guidance for earnings per share for the year $16.90 a share.

“We expect continued improvement through the second half of the year and remain confident that we will achieve our increased 2013 operating EPS expectation of at least $16.90, excluding the $1 billion workforce rebalancing charge in the second quarter,” Rometty said.

Tags: Cloud Service Providers Digital Service Providers MSPs VARs/SIs Sales & Marketing

Related


  • COVID-19 pandemic
    How the Pandemic Will Influence Channel Partner Businesses in 2021
    From reshaping workspaces to doing more with less, four trends will dominate operations and sales.
  • Target group
    Stratus Technologies Targets VARs with New Partner Program
    Stratus offers two edge computing platforms.
  • Woman Thumbs Up
    HPE, Synnex Channel Execs Look Forward to Former Intel CTO Returning as CEO
    One Intel partner calls Gelsinger an industry veteran and visionary.
  • Managed migration
    D&H Extends Financing Terms to Help Partners Amid COVID-19
    Sales through this program increased approximately 85% in the past year to date, year over year.

Leave a comment Cancel reply

-or-

Log in with your Channel Futures account

Alternatively, post a comment by completing the form below:

Your email address will not be published. Required fields are marked *

Related Content

  • Commvault Partners Get New Global Leader with Dell EMC Vet
  • Pax8 Follows Wirehive Acquisition with $96 Million in New Equity Capital
  • Alteryx Chooses Palo Alto Networks Vet to Lead Go-to-Market Plan
  • MSP 501 Profile: Monroy IT Services with a Minority's Perspective on the Channel

Galleries

View all

New, Changing Partner Programs: AWS, Tech Data, Avaya, Verizon

January 11, 2021

Industry Perspectives

View all

Cyberattacks: Threat Hunters Conquer Unpredictability with 3 Measures

January 21, 2021

The Right Data Migration Tool Helps Schools Move to Cloud During COVID Crisis

January 19, 2021

Cloud-Based CRM: What SMBs Need to Know about Backup and Recovery

January 19, 2021

Webinars

View all

Who’s Behind the Mask? Hacker Personas Explained

January 26, 2021

Your Network Perimeter Has Changed

February 18, 2021

How Managed Hosting Providers Thrive with the Alternative Cloud

February 24, 2021

White Papers

View all

Why Subscription Business Model

January 15, 2021

The Ultimate MSP Guide to Sales Efficiency

January 14, 2021

Eight Reasons Why MSPs Need IT Industry-Specific Sales Tools

January 14, 2021

Upcoming Events

View all

Channel Partners Virtual

March 2, 2021 - March 4, 2021

Channel Partners Conference & Expo

November 1, 2021 - November 4, 2021

Videos and Fastchats

View all

FASTCHAT: How SOAR Eliminates Security Challenges and Elevates Service Provider Revenues

January 6, 2021

Happy Holidays from Channel Partners & Channel Futures!

December 21, 2020

FASTCHAT: How Old, Unpatched Technologies Are Creating New Security Threats for MSPs and Their Customers

December 3, 2020

Twitter

ChannelFutures

#MSPs can inject predictability into #threathunting @Sophos #cybersecurity #ransomware dlvr.it/Rr4ffV https://t.co/Bztc2Yxwvc

January 22, 2021
ChannelFutures

.@RiskBased report shows decrease in #databreaches, jump in exposed records in 2020. dlvr.it/Rr4fcW https://t.co/PYiDMiJFbt

January 22, 2021
ChannelFutures

Legal experts say @VMware's #lawsuit against @nutanix's new CEO holds little weight. dlvr.it/Rr48FJ https://t.co/oLxPhgvgAt

January 21, 2021
ChannelFutures

bit.ly/2Y0kFZh twitter.com/Craig_Galbrait…

January 21, 2021
ChannelFutures

Our latest #Cybersecurity Roundup features @BitSight and @kovrrIns, @Vectra_AI and @AppOmniSecurity,… twitter.com/i/web/status/1…

January 20, 2021
ChannelFutures

.@solarwinds hackers target @Malwarebytes, impacting internal emails. #cybersecurity dlvr.it/RqzkZp https://t.co/aWqLjCCW9y

January 20, 2021
ChannelFutures

.@citrix $2.25 deal to acquire @wrike expands @CitrixPartners network into collaborative work management.… twitter.com/i/web/status/1…

January 20, 2021
ChannelFutures

.@Carbonite Migrate uses real-time replication to move workloads to #cloud with minimal risk and near-zero downtime… twitter.com/i/web/status/1…

January 20, 2021

MSSP Insider

Newsletters and Updates

Sign up for The Channel Report, Channel Futures Update, MSP 501 Newsletter and more.

Live Channel Events

Get the latest information on the next industry-leading Channel Partners event.

Channel Partners Online

Want more? Find more channel news and analysis on our sister site, Channel Partners.

Media Kit And Advertising

Want to reach our audience? Access our media kit

DISCOVER MORE FROM INFORMA TECH

  • Channel Partners Online
  • Channel Partners Events
  • MSP 501
  • MSSP Insider
  • IoT World Today
  • Webhostingtalk

WORKING WITH US

  • Contact
  • About us
  • Advertise
  • Newsletter

FOLLOW Channel Futures ON SOCIAL

  • Privacy
  • CCPA: “Do Not Sell My Data”
  • Cookie Policy
  • Terms
Copyright © 2021 Informa PLC. Informa PLC is registered in England and Wales with company number 8860726 whose registered and Head office is 5 Howick Place, London, SW1P 1WG.
This website uses cookies, including third party ones, to allow for analysis of how people use our website in order to improve your experience and our services. By continuing to use our website, you agree to the use of such cookies. Click here for more information on our Cookie Policy and Privacy Policy.
X