IBM's sales sag in New Zealand

Subsidiary records its lowest revenues since 2006, but maintains profitability during "transformation".

IBM New Zealand reported sales of NZ$364 million for the year ended 31 December 2014, the company's lowest sales figure since 2006.

Net profit, however, was NZ$39.4 million, the second highest in recent years.

Sales in 2013 were NZ$386.9 million driving a record profit of NZ$40.3 million.

The 2014 result mirrors that reported in Australia, where sales fell to AU$3.53 billion from AU$4.12 billion year-on-year.

IBM sold two significant business units in the past two years, its x86 server business, sold to Lenovo last September, and its customer care services, bought by Synnex in September 2013.

"As part of our transformation IBM is investing in cloud, analytics, social, mobile and security that deliver higher value and innovation to our clients," an IBM New Zealand spokesperson said in a statement.

"Our global strategy is paying off, with these strategic imperatives now representing US$25 billion and 27 percent of IBM's revenue."

IBM NZ invested NZ$10 million into local cloud services last year and also invested in local partnerships to redesign health services.

That strategy bore fruit with two significant local health sector deals announced early in the current financial year.

Under one new contract, IBM will provide infrastructure-as-a-service to the Ministry of Health for at least five years. A separate managed cloud deal will see the company enable datacentre consolidation in the health sector and the roll-out of a National Infrastructure Platform.