IBM reports quarterly blues

 

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By Reuters

Posted on 21 Apr 2009 at 14:19

IBM has reported an 11% fall in quarterly revenue, as the slowdown in corporate spending strikes at one of the sector's healthiest companies.

IBM's quarterly revenue fell to $21.71 billion from $24.50 billion a year earlier. Net profit was down 1% to $2.30 billion, from $2.32 billion in the year-ago quarter.

IBM has fared better than many other technology companies, thanks to its growing focus on software and services, such as outsourcing and technology support.

Despite the fall in revenue, IBM reiterated its outlook for a full-year profit of at least $9.20 per share.

"We remain ahead of pace for our 2010 roadmap of $10 to $11 per share," says chief executive Samuel Palmisano.

IBM competes with HP and Dell, and could face a new challenge from Oracle which is buying server and software maker Sun for more than $7.4 billion. IBM's own talks to buy Sun broke down earlier this month.