IBM acquires UrbanCode, releases first-quarter results

IBM Inc. announced that it has acquired Cleveland-based software company UrbanCode Inc.

The company stated that UrbanCode”™s software is a natural extension of IBM”™s DevOps strategy, designed to simplify and speed the entire software development and delivery process for businesses. Terms of the deal were not disclosed.

“Companies that master effective software development and delivery in rapidly changing environments such as cloud, mobile and social will have a significant competitive advantage,” Kristof Kloeckner, general manager of IBM Rational Software, said in a statement. “With the acquisition of UrbanCode, IBM is uniquely positioned to help businesses from every industry accelerate delivery of their products and services to better meet client demands.”

IBM released its 2013 first-quarter earnings report, which saw net income decline 1 percent, year-to-year to $3 billion, while operating net income increased 3 percent year-to-year from $3.3 billion to $3.4 billion.

Revenues fell 5 percent to $23.4 billion, while the company reported diluted earnings of $2.70 a share, a year-to-year increase of 3 percent.

“We did not achieve all of our goals in this period,”  Ginni Rometty, IBM chairman, president and CEO, said in a statement. “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.”

Rometty said that the company is still on track to reach its earnings per share expectation of $16.70.