NEW YORK IBM's (IBM) first-quarter net income fell 1 percent due to delays in several of the technology company's large software and mainframe computer deals. The results fell short of Wall Street's expectations, sending IBM's stock lower in after-hours trading.
IBM said Thursday that it earned $3.03 billion, or $2.70 per share, in the January-March period. That's down from $3.07 billion, or $2.61 per share, in the same period a year earlier. Last year's quarter had more outstanding shares, which lowers per-share results.
Earnings excluding one-time items were $3 per share in the latest quarter, below Wall Street's expectations of $3.05 per share.
Revenue fell 5 percent, to $23.41 billion from $24.67 billion. Analysts polled by FactSet had expected revenue to be nearly unchanged, at $24.65 billion.
"In the first quarter, we grew operating net income, earnings per share and expanded operating margins but we did not achieve all of our goals in the period," said Ginni Rometty, CEO of IBM, in a statement on Thursday. "Despite a solid start and good client demand we did not close a number of software and mainframe transactions that have moved into the second quarter."
Chief Financial Officer Mark Loughridge said on a conference call that weakness in the Japanese yen hurt the quarter's results. A weak yen translates to fewer dollars for IBM on sales in Japan.
IBM kept its full-year guidance intact. It still expects adjusted, per-share earnings of at least $16.70 for 2013. Analysts predict $16.77.
Shares of the Armonk, N.Y.-based company fell $7.15, or 3.5 percent, to $200 in after-hours trading following the earnings announcement. The stock had closed down $2.52, or 1.2 percent, at $207.15.