IBM and Intel net earnings decline in second-quarter
Revenues of the two tech giants also slip.
Technology giant IBM and chipmaker Intel Corporation have posted a fall in net income for the second-quarter of 2013.
Intel reported a net income of $2bn for the second-quarter ended 29 June 2013, a decline of 29 per cent compared to $2.82bn for the same period last year. Net revenues also declined to $12.81bn (2012: $13.5bn), while operating income was $2.71bn (2012: $3.82bn).
During the quarter, revenues of Intel’s PC client group, and data center group fell by 7.5 per cent and 6.1 per cent year-over-year to $8.1bn and $2.7bn respectively. Meanwhile, architecture group revenues also fell by 15 per cent to $942m year-over-year.
Brian Krzanich, CEO of Intel, said: “In the second quarter, we delivered on our quarterly outlook and made several key product announcements. In my first two months as CEO, I have listened to a wide variety of views about Intel and our industry from customers, employees and my leadership team and I am more confident than ever about our opportunity as a company.”
For the second-quarter of 2013, IBM posted a net income of $3.2bn, a fall of 17 per cent compared to $3.9bn for the same period last year. Revenues declined by 3.3 per cent to $24.92bn (2012: $25.78bn).
IBM’s software segment contributed revenues of $6.4bn, while systems and technology segment brought in $3.8bn. Global financing segment contributed revenues of $487m during the quarter.
“In the second quarter, we delivered strong performance in our higher-value software and mainframe businesses and again significantly increased our services backlog on growth in new business,” said Ginni Rometty, chairman, president and CEO of IBM.