Currency Adjustment Sours IBM's (IBM) Q3

Tech giant IBM (NYSE: IBM) released its third-quarter earnings report today. While earning were reported in line with estimates at $3.62, revenue was a hair light at $24.7 billion versus the consensus of $25.38 billion. Revenue was 5 percent lower than revenue in the comparable quarter in 2011, when IBM reported revenue of $26.16 billion. The company credited the $1 billion shortfall to negative impact from currency adjustments.

Of the various segments, systems and technology revenue declined the most, falling 13 percent. Software revenue and service revenue both fell, declining 1 percent and 5 percent respectively (up 3 percent and flat adjusted for currency).

"Looking ahead, we see good opportunity with a strong product lineup heading into this quarter and annuity businesses that provide a solid base of revenue, profit and cash,” said Ginni Rometty, IBM chairman, president and chief executive officer.

IBM reiterated full-year 2012 operating earnings of $15.10.per share.

Shares of IBM last traded down 3.4 percent to $203.87.

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