IBM Earnings and Revenue Fall Short

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IBM reported quarterly earnings and revenue that came in short of analysts' expectations on Thursday.

After the earnings announcement, the tech company's shares fell in after-hours trading. What is IBM's stock doing now? (Click here to get the latest quote.)

Net income fell 1.1 percent to $3.03 billion, or $2.70 a share, from $3.07 billion, or $2.61 a share, in the year-earlier period.

Excluding items, the company's earnings were $3 a share, up from $2.78 a share a year ago.

Revenue decreased 5 percent to $23.41 billion from $24.67 billion a year ago.

Analysts had expected the IBM to report earnings ex-items of $3.05 a share on revenue of $24.62 billion, according to a consensus estimate from Thomson Reuters.

"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 dollars for IBM on sales in Japan.

IBM kept its full-year guidance intact: It still expects adjusted, per-share earnings of at least $16.70 for 2013. Analysts currently expect $16.77 a share.