Los Angeles - IBM reported net income of $3.5 billion in the third quarter, a 17-percent decrease from $4.1 billion in the year-ago period, the technology services giant said on Monday.
Sales decreased by 4 percent to $22.4 billion in the quarter, the company said.
“We are disappointed in our performance,” said Ginni Rometty, IBM chairman, president and chief executive.
“While we did not produce the results we expected to achieve, we again performed well in our strategic growth areas - cloud, data and analytics, security, social and mobile, where we continue to shift our business.”
Cloud revenue increased by more than 50 percent, and security revenue rose by more than 20 percent year-to-date, according to the statement.
The company did not provide an earnings forecast for 2015.
Shares fell as much as 7 percent following the announcement. - Sapa-dpa