International Business Machines lowered its full-year revenue outlook after reporting a decline in demand from the mainframe business, including expectations for the much-publicized software sector. The company said in an announcement on Wednesday that revenue is expected to increase by 4% to 5% this year, compared to previous estimates of more than 5%. Chief Financial Officer Jim Kavanaugh said in an interview that the software division's annual sales will increase by 6 to 8 percent. IBM said it will expedite the implementation of cost savings plans and continues to expect an additional free cash flow of 1 billion US dollars this year. Kavanaugh said this will be achieved by reducing third-party technology expenses, improving supply chain management and reducing administrative costs. He also said that there should be no change in the company's total number of employees this year. The company's total revenue increased by approximately 1% to $17.2 billion. Earnings per share, excluding certain items, were $2.93. IBM closed at $205.77 in New York, up about 3% in after-hours trading. By Wednesday's close, the stock had fallen 31% this year, including a sharp drop of 25% in a single day after the release of the preliminary earnings estimates.

International Business Machines lowered its full-year revenue outlook after reporting a decline in demand from the mainframe business, including expectations for the much-publicized software sector. The company said in an announcement on Wednesday that revenue is expected to increase by 4% to 5% this year, compared to previous estimates of more than 5%. Chief Financial Officer Jim Kavanaugh said in an interview that the software division's annual sales will increase by 6 to 8 percent. IBM said it will expedite the implementation of cost savings plans and continues to expect an additional free cash flow of 1 billion US dollars this year. Kavanaugh said this will be achieved by reducing third-party technology expenses, improving supply chain management and reducing administrative costs. He also said that there should be no change in the company's total number of employees this year. The company's total revenue increased by approximately 1% to $17.2 billion. Earnings per share, excluding certain items, were $2.93. IBM closed at $205.77 in New York, up about 3% in after-hours trading. By Wednesday's close, the stock had fallen 31% this year, including a sharp drop of 25% in a single day after the release of the preliminary earnings estimates.