IBM Sales Drop and Executives Aren't Ready to Discuss Red Hat
- Global technology services fell 6.7%, same as in first quarter
- $34 billion Red Hat deal hasn’t factored into earnings yet
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International Business Machines Corp. shares slipped after executives were tight-lipped about the company’s $34 billion Red Hat acquisition and how it will help growth in cloud computing.
The deal closed last week and IBM reported quarterly results on Wednesday. Analysts tuned into a conference call to glean fresh details on the impact of adding Red Hat’s open-source software to IBM’s current offerings. But Chief Financial Officer Jim Kavanaugh declined to answer any questions on Red Hat, saying the company will share an updated financial forecast at its annual investor briefing on Aug. 2.