IBM Corp, the worldâ€™s biggest technology services company, missed analystsâ€™ estimates for the fourth quarter of 2013. That marks the fourth quarter in a row that IBM has come up short compared to estimates. Total revenue for the quarter fell 5 percent to $27.7 billion; whereas analysts had estimated that figure to be $28.5 billion, according to Thomson Reuters. Revenue from the tech titanâ€™s hardware segment plunged 26 percent — based mainly on Chinaâ€™s rejection of the companyâ€™s server technology — to hurt the companyâ€™s revenue performance. This revenue shortfall also produced a $750 million hit to profits for the segment. In after-hours trading, shares fell 3.5 percent on the news. As to how this dismal performance would affect the companyâ€™s plans for restructuring, CEO Martin Schroeter was careful not to hit the panic button. Schroeter said, â€śWe will continue our transformation. We will acquire key capabilities, we will divest businesses and we will rebalance our workforce as we continue to return value to shareholders.â€ť Actually, to continue returning value to shareholders, the company needs to show a profit, not four quarters of underperformance.
Sign up to the Human Events newsletter