IBM revenue slides 11 per cent

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IBM posted a slip of 11 per cent in quarterly revenue on year, after losing Sun Microsystems to Oracle this week.

Revenue for the first quarter of the year fell to $21.7 billion from the first quarter of 2008, while income slipped one per cent to $2.3 billion.

IBM said it was doing well despite the economy, largely because of cost controls. “IBM continued to perform well in a very difficult economic environment,” said Samuel J. Palmisano, IBM's chairman, president and chief executive officer, in a statement.

He said refocusing on software and services helped the firm.”At the same time we have a disciplined approach to cost and expense management giving us a strong financial position," Palmisano added. IBM noted that it won 16 services deals worth over $100 million in the quarter.

Despite its failed bid for Sun – which Oracle managed to successfully pickup for $7.4 billion this week – IBM still plans acquisitions.

“We are well-positioned to continue to move aggressively and leverage our strong cash performance to make the most of the opportunities that arise, including smarter planet initiatives and other strategic options,” Palmisano said.

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