IBM: Fiscal 1Q14 Financial Results

Revenue from IBM’s storage hardware business decreased 23% in 1Q14, ended March 21, 2014, compared to the same period one year ago.

That’s a record in percentage of decreased sales since more than two years! And Big Blue saw this business going down each quarter also since more than two years (see table below.)

Revenue from the hardware business, which includes servers and systems storage, also plunged 23% to $2.4 billion.

Storage represents 21% of IBM System and Technology segment or only around $504 million in 1Q14. For the former three-month period, it was $946 million.

Flash solutions contributed growth again this quarter, but IBM saw substantial weakness in high-end storage.

The company has been restructuring its business by cutting jobs and selling its low-end server business to Chinese computer maker Lenovo for $2.3 billion in January. But it warned that challenges in its hardware business may persist.

In its most recent quarter, IBM had growth in all three of Tivoli’s product segments, systems management, storage, and security. Revenue of Tivoli is up 7% from 1Q13 to 1Q14. 

 IBM System Storage Revenue