IBM profits drop seven per cent
Technology giant IBM has seen its profits shrink to $US2.3 billion ($A2.9 billion) dollars in the second quarter.
The seven per-cent profit decrease versus the same period last year was accompanied by a five per-cent drop in sales, to $US19.3 billion ($A24.4 billion) dollars, the company said.
IBM's share price dropped about two per cent after the close in New York on the news, even though profits were higher than analysts expected.
The IT firm has seen a drop in profits from its core software business for 21 quarters in a row but has shown strong growth in other areas.
Founded in 1911 as the Computing-Tabulating-Recording Company, IBM has been trying to reinvent its business focus for some time under CEO Ginni Rometty, towards cloud services, data analysis and artificial intelligence.
"In the second quarter, we strengthened our position as the enterprise cloud leader and added more of the world's leading companies to the IBM Cloud," Rometty said Tuesday.
She added that the computing company was "continuing to innovate" and "reinventing the IBM mainframe".
Back to Breaking News