IBM sees profits fall by 21 in Q1

IBMyesterday presentedthe resultsof its first quarter 2014 reflect a decrease in sales and profits.The first is $ 22.5 billion (-4%) and is lower than analysts expectations.Profits meanwhile fell 21% year on year to $ 2.4 billion.

The latter figure included a charge of $ 870 million allocated to layoffs and a gain of $ 100 million for the sale of its outsourcing business customer service.

The software and services division saw its sales grow by 2%, driven mainly by the middleware.Revenues from cloud division grew 50% year over year to $ 2.3 billion.This is the hardware division that has sealed the figures with a 23% decrease in turnover.

Sales System Z mainframe fell 40%, those of Power Systems 22% while those storage solutions fell 23%.

IBM relies on the sale of thebusiness to Lenovo serversto reduce the size of the hardware business and return to profitability, especially with the launch of its Power 8 solution. In summary, the transition from Big Blue is expected to continue for several quarters.(Eureka Press)