International Business Machines reported a ninth straight quarter of declining sales as demand fell for hardware and computer services, underscoring the urgency of its plan to get more revenue from newer businesses such as cloud computing.
Second-quarter revenue dropped 2 percent from a year earlier, to $24.4 billion. Analysts had, on average, projected $24.1 billion, according to data compiled by Bloomberg. Adjusted earnings rose to $4.32 a share.
Cloud offerings delivered as a service are at an annual run rate of $2.8 billion, compared with $2.3 billion at the end of the first quarter.
“Our performance continues to reflect pricing pressure and client contract renegotiations, as well as a reduction in elective projects,” IBM Chief Financial Officer Martin Schroeter said during the earnings conference call.
— Bloomberg News
IT jobs grew 0.3 percent between May and June to 4,663,800, according to a report from the TechServe Alliance, a trade association for IT and engineering staffing companies.
Compared with the same period in 2013, IT employment has grown by 3.2 percent, said the report, which is based on data from the federal Bureau of Labor Statistics. About 144,200 IT workers have been added to the workforce in that time, according to the report.
IT jobs in the computer systems and decision services sector were up 0.4 percent from the same period a year ago, the report said. Data processing, hosting and related services were up 0.6 percent, and management and technical consulting services were up 0.7 percent.
— Mohana Ravindranath