IBM Australia has suffered a 34 percent drop in net profit after tax for the financial year ending 31 December 2013.
According to IBM Australia's financial report, which was submitted with the Australian Securities and Investments Commission, net profit for the year was down AU$122 million to AU$233 million from the AU$355 million profit recorded during the previous financial year.
The report showed the main blame for the profit loss recorded by the local operations of Big Blue was due to the downfall in total revenue. It was down to AU$4.12 billion for the 2013 financial year from the AU$4.52 billion recorded last year.
IBM Australia reaffirmed its principal activities during the year related to the "provision of advanced information services, products and technologies, including the marketing of imported and locally produced information processing equipment, software and supplies, the maintenance and leasing of that equipment and software and professional services".
In March, IBM CEO Ginny Rometty shared with shareholders the company's plans to revamp the business around cognitive and cloud computing, as well as systems of engagement.
Recent acquisitions and sales by the company align with its future revamp strategy. For example, IBM recently completed its US$1.3 billion acquisition deal of recruitment and talent management software and services provider Kenexa.
IBM also sold its customer care services business to Synnex last September. The deal for IBM Australia was completed at the end of January.
IBM and Lenovo also announced another deal where Lenovo will acquire the company's x86 server portfolio business. The acquisition by Lenovo of IBM Australia's x86 server business is expected to be completed in the second quarter of 2014. This will give IBM more opportunity to focus its efforts on its revamp.
In Australia, the company has also been making cuts to its local workforce, where 500 jobs were expected to be slashed in March, in addition to the 1,500 jobs culled during June 2013, as part of a global restructure plan.