International Business Machines Corporation (IBM-NYSE) shares took a beating on Tuesday, down 6% or over $10 per share into mid-afternoon trading.
The heavy sell-off action on 'Big Blue' weighed heavy on the Dow Jones Industrial Average that was hosting a triple digit loss on the session. Big Blue could be facing its eighth biggest price drop in its history.
For Q2 2015, IBM posted a 13.5% drop in revenue to $20.8 billion and net income fell 16.6% to $3.6 billion. Sales across every major IBM division fell during Q2.
As the financial results for IBM continues to collapse, CEO Ginni Rometty expresses her optimism with public comments as her view of Big Blue's future is either a sign of self-delusion or a means to try to hold onto a job that is slowly slipping from her grasp. Rometty's excuse for quarterly results is that IBM has entered new businesses that show promise.
Response from Rometty on recent quarter results: Our results for the first half of 2015 demonstrate that we continue to transform our business to higher value and return value to shareholders. We expanded margins, continued to innovate across our portfolio and delivered strong growth in our strategic imperatives of cloud, analytics and engagement, which are becoming a significant part of our business.
IBM's strategic imperatives revenues including cloud, analytics and engagement - increased by more than 20% year-to-date.
Cloud revenues increased more than 50% year-to-date and over the last 12 months came in at $8.7 billion. The annual run rate for cloud delivered as a service increased to $4.5 billion from $2.8 billion in Q2 2014.
Business analytics revenues increased more than 10% year-to-date.
Year-to-date revenues from mobile more than quadrupled and social revenues increased more than 30%.
Contributed by Millennium Traders
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