IBM’s shares hit as reports lowest quarterly revenue for five years

TECHNOLOGY giant IBM posted the lowest quarterly revenue in five years yesterday, the eighth in which revenues have fallen, sending its share price down after hours.

Shares of the world’s largest technology services company fell about four per cent to $188.20 (£112.03) following the announcement. Total revenue for the group dropped by four per cent to $22.5bn during the first three months of 2014, lower than average analysts’ estimate of $22.91bn.

IBM reported revenue of $21.71bn in March 2009.

Revenue from the hardware business, which includes servers and systems storage, plunged 23 per cent to $2.4bn.

The company has been restructuring its business by cutting jobs and selling its low-end server business to Chinese computer maker Lenovo for $2.3bn in January. The company warned that challenges in its hardware business may persist.