IBM reported quarterly revenue that missed analysts’ estimates, as it grapples with dwindling demand for its servers and storage products.
Shares of the world’s largest technology services company fell 3.5 percent to $151.59 in extended trading.
IBM forecast 2015 operating earnings of $15.75 to $16.50 per share, just shy of analysts’ average estimate of $16.51 per share, according to Thomson Reuters I/B/E/S.
The company has been divesting its underperforming businesses in an attempt to realign itself with the sector’s shift to higher-margin businesses, such as security software and cloud services. It has also been battling an appreciating U.S. dollar.
The company’s total revenue fell nearly 12 percent to $24.11 billion in the fourth quarter ended Dec. 31. Revenue from hardware fell 39 percent to $2.41 billion.
Net income fell to $5.48 billion, or $5.51 per share, from $6.19 billion, or $5.73 per share, a year earlier.
On an adjusted basis, the company earned $5.81 per share.
Analysts on average were expecting a profit of $5.41 per share on revenue of $24.77 billion.
The company’s shares closed at $156.95 on the New York Stock Exchange on Tuesday.
(Reporting by Anya George Tharakan in Bengaluru; Editing by Savio D’Souza)
This article originally appeared on Recode.net.