In its latest results just released, IBM reports that software revenue was up by 5% in the second quarter (currency adjusted), while hardware revenues came in at $US3.8 billion in the quarter, representing a drop of 12% from the same quarter in 2012.
Other results were also mixed, with Power Systems revenues falling 25% in the quarter - System x down 11% and System z mainframe revenue up 10%.
In the Asia Pacific region sales fell 8%.
“In the second quarter, we delivered strong performance in our higher-value software and mainframe businesses and again significantly increased our services backlog on growth in new business,” Ginni Rometty, IBM Chairman, President and CEO, said.
“Going forward, we will continue investing in our strategic growth initiatives, acquiring and divesting capabilities, re-balancing skills and taking action in the areas that are not performing.
“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.”