IBM's first quarter fell short of expectations as deals slipped into the second quarter. IBM's comments about a poor finish to the first quarter is becoming a common refrain among enterprise technology companies.
The company reported first-quarter earnings of $3 billion, or $2.70 a share, on revenue of $23.4 billion, down 5 percent from a year ago. Non-GAAP earnings for the first quarter were $3 a share.
IBM was expected to report first-quarter earnings of $3.05 a share on revenue of $24.6 billion.
CEO Ginni Rometty said that the company saw a strong start to the quarter, but "we did not close a number of software and mainframe transactions that have moved into the second quarter."
IBM said that it will deliver 2013 non-GAAP earnings per share of at least $16.70. Wall Street is looking for $16.77 a share.
IBM saw revenue decline in all regions. Revenue in the Americas was $10 billion, down 4 percent from a year ago. Revenue in Europe, the Middle East, and Africa was $7.3 billion in the first quarter, down 4 percent. Revenue in the Asia-Pacific region fell 7 percent to $5.7 billion. Even growth markets such as BRIC countries -- Brazil, Russia, India, and China -- fell 1 percent.
By division, IBM's services backlog in the first quarter was $141 billion, up 1 percent. But services revenue overall fell. Software revenue was flat. Hardware revenue fell 17 percent.
This story originally appeared as "IBM's Q1 closes weak as software, mainframe deals slip" on ZDNet.