IBM reports lowest quarterly revenue in five years as hardware sales fall
By Supantha Mukherjee and Soham Chatterjee
(Reuters) - IBM Corp reported its lowest quarterly revenue in five years as the company struggles with falling demand for its storage and server products.
Shares of the world's largest technology services company fell about 4 percent to $188.20 in after-hours trade.
Total revenue fell 4 percent to $22.5 billion in the first quarter, below analysts' average estimate of $22.91 billion.
"They have had eight revenue declines in a row. They have missed so many times, it's hard to keep track of it," said Fred Hickey, editor of The High-Tech Strategist newsletter, which is widely read by investors.
IBM reported revenue of $21.71 billion in March 2009.
Revenue from the hardware business, which includes servers and systems storage, plunged 23 percent to $2.4 billion.
The company has been restructuring its business by cutting jobs and selling its low-end server business to Chinese PC maker Lenovo Group Ltd for $2.3 billion in January.
"They used to be a leader. Now they sell one business after the next. That is not a way to grow," Hickey, who has followed IBM for 30 years, said. Continuación...