IBM's first-quarter net income has fallen one per cent 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 on Thursday that it earned $US3.03 billion ($A2.95 billion), or $US2.70 per share, in the January-March period.
That's down from $US3.07 billion, or $US2.61 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 $US3.00 per share in the latest quarter, below Wall Street's expectations of $US3.05 per share.
Revenue fell five per cent, to $US23.41 billion from $US24.67 billion. Analysts polled by FactSet had expected revenue to be nearly unchanged, at $US24.65 billion.
"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," said IBM CEO Ginni Rometty in a statement.
"The services business performed as expected with strong profit growth and significant new business in the 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 US dollars for IBM on sales in Japan.
IBM kept its full-year guidance intact. It still expects adjusted, per-share earnings of at least $US16.70 for 2013. Analysts predict $US16.77.
Shares of the Armonk, New York-based company fell $US7.15, or 3.5 per cent, to $US200 in after-hours trading following the earnings announcement. The stock had closed down $US2.52, or 1.2 per cent, at $US207.15.
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