IBM 2QCY13 result: Soft revenues, strong outsourcing booking - AMBIT - Technology

Tech bellwether IBM reported its 2QCY13 results last night. IBM's outsourcing backlog grew 7% YoY in constant currency (ccy) - the best growth figures in the last four years. Software revenue growth also perked up to 5% YoY ccy (vs 1% YoY ccy growth achieved in 1QCY13). Hardware revenues continue to remain under pressure and declined by 7% YoY in ccy. Whilst improving outsourcing backlog (up 7% YoY in ccy) indicates increasing competition for Indian IT services firms, we would not read the improved software revenue growth as a sign of recovery in discretionary spending just yet as this could be due to deal push-outs from 1QCY13 and wait for other bellwether results (such as SAP, Microsoft results tonight).

Source : Equity Bulls

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