IBM's third-quarter profits dropped 18 per cent but still managed to beat Wall Street's expectations by three cents.
IBM reported a profit of $1.31 billion (€1.34 billion), or 76 cents per share, on slightly higher revenues of $19.82 billion in the quarter ended September 30th.
That compares with profits of $1.60 billion, or 90 cents per share, and revenues of $19.78 billion a year ago.
The company saw revenues slide in its hardware, software and global financing businesses.
IBM chief financial officer Mr John Joyce said the quarter was "one of the toughest spending environments" he'd seen but that the company's emphasis on its services business - where revenues rose - softened the impact.
Excluding discontinued operations - mainly the company's hard drive business - IBM reported earnings per share of 99 cents, three cents a share better than the consensus of analysts polled by Thomson First Call.
In trading Wednesday on the New York Stock Exchange, shares of IBM fell $3.58, or 5 per cent, to close at $64.90. The company reported its earnings after markets closed.
PA