IBM’s fourth quarter earnings report on Thursday shows the company’s performance dropped significantly in the second quarter.
The company posted a decline of 5% in revenue, or about $20 billion.
The company said it was unable to turn around the performance of its data center business, which has been in a slow decline since the beginning of the year.
The IBM performance report, released on Thursday, comes amid the ongoing crisis over data center costs.
In November, the Federal Communications Commission voted to require the internet giant to cover some of its costs for the infrastructure used to transmit and store information.
IBM’s share price was down about 13% on the day of the FCC vote.
The firm also said it expects to lose $1 billion in revenue this quarter, or $4 billion in the year ending in June.
That is down from the $12.6 billion in revenues IBM reported in the fourth quarter of 2016.
IBM also said the company has cut its workforce by 6,000 jobs and expects to add 1,000 workers in 2017.