IBM has released the 2013 Third-Quarter Earnings, and there is both good and bad news with the recent report. The good news is that the third-quarter net income increased six percent where this year's third-quarter earnings were $4.04 billion ($3.68 per share) as opposed to last year's earnings for the same quarter of $3.82 billion ($3.33 per share). The bad news is that the revenue did not reach the anticipated projection of $24.8 billion. In fact, the actual amounts had been off from the expectations by $1 billion with the revenue dropping 4 percent from $24.7 billion to $23.7 billion.
IBM Reports 2013 Third-Quarter Earnings Results. http://t.co/yIAGHu4N4B
— IBM News Room (@IBM_NEWS) October 16, 2013
While there are rises and falls expected with annual earnings, IBM is a front runner for the technology industry and there is concern that results may reflect the industry as a whole. However, it has been suggested that the lower-than-expected-revenue is the result of overseas currency changes.
Josh Olson, who is an analyst with Edward Jones, recently spoke about the viability of the company.
"I think that the hardware business is going to be something they need to work through and growth markets are down much more than expected," Josh said before adding that, "we are not seeing the conversion of that backlog into meaningful revenue."
Regardless, IBM has remained successful due to the heavy attention given to long term contracts as well as the stable need for Internet-based services. Researchers affiliated with the massive technology company, have been known as pioneers in the field of innovation and global communication channels such as Gerd Binnig and Heinrich Rohrer who were both honored in 1986 with the Nobel prize award for physics.
[Images Via IBM's Facebook Page]
— IBM (@IBM) October 8, 2013