Update- Disappointing results for IBM in Q1 2013. The servers division soon to be sold?

by bold-lichterman

Update

There are currently discussions between the Chinese PC maker Lenovo and part of the division servers from IBM. The Bloomberg agency reports that the “low cost” entity of the server activity which had made the glory of the American giant strongly interests the Chinese. We are talking about a transfer between 2.5 and 4.5 billion dollars for the operation. Lenovo had already bought the PC branch of IBM in 2005, and is accelerating the strategic diversification of its activities: tablets and smartphones, data storage, etc. The acquisition of servers, if it is confirmed, would allow the Chinese to find its place in the market of the global cloud.

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IBM released yesterday his results of the first quarter of 2013.

The group thus announced a net profit down 1% to 3.0 billion dollars, lower than analysts’ expectations.

The company’s revenue, which was $ 24.67 billion last year, is down 5% here to $ 23.41 billion, as analysts expected revenue virtually unchanged at $ 24.65 billion. The operating margin reached 46.7%, up one point.

By industry, services fell 4% to $ 9.6 billion, software remained stable at 5.6 billion, and hardware, that is to say mainly servers, fell 17 % to 3.1 billion.

IBM’s stock fell in the post-session on the New York Stock Exchange.

Ginni Moretty, boss of the group, declared in a press release: “We did not achieve all of our objectives during this period… Despite a solid start and good customer demand, we were unable to conclude a number of agreements in software and hardware. They were postponed to next quarter ”.

At the same time, IBM France is planning a restructuring of its workforce, and should present next Wednesday a plan to cut 1,200 to 1,400 jobs over two years, or about 14% of the workforce.