IBM on Wednesday reported yet another quarter of declining revenues as the company has struggled this year to overcome the one-two punch of falling hardware sales and currency headwinds.
IBM’s Software and Global Business Services unit results were flat for the third quarter ended in September. But the Systems and Technology unit, which makes server and storage hardware, reported a sales decline of 16.6% year-over-year to $ 3.2 billion. Hardware accounts for approximately 16% of IBM’s total revenues.
IBM’s large Global Technology Services unit, which handles long-term outsourcing deals and accounts for approximately 40%, reported a 4.3% year-over-year decline in revenue to $ 9.5 billion.
Total company revenues on the quarter were down 4.1% from the previous year to $ 23.7 billion.
Wall Street expected revenue of $ 24.74 billion, so IBM’s stock was punished in after-hours trading, falling 6% to $ 175.56. Despite the revenue shortfall, non-operating moves including stock repurchases and tax benefits helped IBM meet earnings expectations for the quarter and confirm its (non-GAAP) profit forecast of $ 16.25 per share for 2013.