IBM reported a 12 percent fall in first-quarter revenue as the technology company continues to shed unprofitable businesses to focus on cloud-computing initiatives.
Earnings, however, exceeded analyst expectations, and the stock was up slightly in after-hours trading.
It was the 12th straight quarter that the Armonk, N.Y.-based company reported a drop in quarterly revenue, including currency effects.
IBM’s revenue has been shrinking for three years now as the company sheds low-profit businesses such as cash registers, low-end servers and semiconductors and focuses on emerging areas such as security software and cloud services. But the new businesses have so far failed to make up for revenue lost to divestitures.
The company also said it now expects a 7 percent impact from currency headwinds in the full year. It had earlier expected an impact of 5-6 percent.
Net income fell slightly to $2.33 billion for the quarter ended March 31 from $2.38 billion a year earlier. Total revenue fell to $19.6 billion from $22.2 billion. On an adjusted basis, the company earned $2.91 per share.
Analysts on average had expected a profit of $2.80 per share on revenue of $19.64 billion.
(Reporting by Bill Rigby and Lehar Maan in Bengaluru; Editing by Saumyadeb Chakrabarty)
This article originally appeared on Recode.net.
