Archive for the ‘2012’ Category
IBM announced this afternoon fourth-quarter 2012 diluted earnings of $5.13 per share, compared with diluted earnings of $4.62 per share in the fourth quarter of 2011, an increase of 11 percent.
Fourth-quarter net income was $5.8 billion compared with $5.5 billion in the fourth quarter of 2011, an increase of 6 percent. Total revenues for the fourth quarter of 2012 of $29.3 billion decreased 1 percent (flat adjusting for currency) from the fourth quarter of 2011.
“We achieved record profit, earnings per share and free cash flow in 2012. Our performance in the fourth quarter and for the full year was driven by our strategic growth initiatives — growth markets, analytics, cloud computing, Smarter Planet solutions — which support our continued shift to higher-value businesses,” said Ginni Rometty, IBM chairman, president and chief executive officer.
“Looking ahead, we continue to invest to deliver innovations for the enterprise in key areas such as big data, mobile solutions, social business and security, while expanding into new markets and reaching new clients. We are well on track toward our long-term roadmap for operating EPS of at least $20 in 2015.”
Following are key details of 4Q 2012 earnings:
GAAP: $5.13, up 11 percent;
Operating (non-GAAP): $5.39, up 14 percent;
GAAP: $5.8 billion, up 6 percent;
Operating (non-GAAP): $6.1 billion, up 10 percent;
Gross profit margin:
GAAP: 51.8 percent, up 1.8 points;
Operating (non-GAAP): 52.3 percent, up 2.1 points;
Revenue of $29.3 billion, down 1 percent, flat adjusting for currency:
Up 1 percent excluding divested RSS business adjusting for currency;
Free cash flow of $9.5 billion, up $0.6 billion;
Software revenue up 3 percent, up 4 percent adjusting for currency;
Services revenue down 2 percent, down 1 percent adjusting for currency;
Services backlog of $140 billion, flat, up $1 billion adjusting for currency;
Systems and Technology revenue down 1 percent, up 4 percent excluding RSS:
System z mainframe up 56 percent.
Full Year 2012
Diluted EPS, up double-digits for 10th consecutive year:
GAAP: $14.37, up 10 percent;
Operating (non-GAAP): $15.25, up 13 percent;
GAAP: $16.6 billion, up 5 percent;
Operating (non-GAAP): $17.6 billion, up 8 percent;
Revenue of $104.5 billion, down 2 percent, flat adjusting for currency;
Free cash flow of $18.2 billion, up $1.6 billion;
Growth markets revenue up 4 percent, up 7 percent adjusting for currency:
BRIC countries up 7 percent, up 12 percent adjusting for currency;
Business analytics revenue up 13 percent;
Smarter Planet revenue up more than 25 percent;
Cloud revenue up 80 percent.
Full-Year 2013 Expectation:
GAAP EPS of at least $15.53 and operating (non-GAAP) EPS of at least $16.70.
This is a big day for announcements.
First, IBM announced a record 6,478 patents in 2012, patents for inventions that will enable fundamental advancements across key domains that includes analytics, big data, cybersecurity, cloud, mobile, social networking, as well as industry solutions like retail, banking, healthcare, and transportations.
These patented inventions also will advance a major shift in computing, known as the era of cognitive systems.
This is the 20th consecutive year that IBM topped the annual list of U.S. patent recipients.
Ginny Rometty, IBM’s chairman and CEO, had this to say about the milestone:
“We are proud of this new benchmark in technological and scientific creativity, which grows out of IBM’s century-long commitment to research and development. Most concretely, our 2012 patent record and the two decades of leadership it extends are a testament to thousands of brilliant IBM inventors — the living embodiments of our devotion to innovation that matters, for our clients, for our company and for the world.”
IBM’s record-setting 2012 patent tally was made possible by more than 8,000 IBM inventors residing in 46 different U.S. states and 35 countries. IBM inventors residing outside the U.S. contributed to nearly 30% of the company’s 2012 U.S. patent output.
There was also an early morning announcement from Los Angeles, this year’s Academy Award nominees.
There was another long slate of Best Film nominees, including Amour, Argo, Beasts of the Southern Wild, Django Unchained, Les Miserables, Life of Pi, Lincoln, Silver Linings Playbook, and Zero Dark Thirty.
I’ve seen five of the nine, which puts me well ahead of where I am most years in terms of what films I have and haven’t seen.
Best Actor nominations were led by Daniel Day-Lewis for Lincoln and Bradley Cooper for Silver Linings Playbook. If you’ve seen Lincoln, it’s hard to see how the Best Actor Oscar doesn’t go do DDL.
On the Best Actress front, the nominations were led by Juillard-trained Jessica Chastain for Zero Dark Thirty and Jennifer Lawrence in Silver Linings Playbook. But don’t rule out Emmanualle Riva for Amour, or the chamelon-like Naomi Watts in The Impossible. In a crazy year, Quvenzhane Wallis could even walk away with the Oscar for her crazy good performance in Beasts of the Southern Wild, one of the most unique, imaginative films I’ve seen in years.
Quentin Tarantino got a nomination for Django Unchained in the Best Original Screenplay category, but I think that one is there for the taking by Mark Boal, screenwriter for Zero Dark Thirty.
Congrats to all this year’s nominees. As a big movie fan myself, looking at that slate of Best Pic nominees, you realize what a strong movie year it’s been.
Finally, on the topic of movies, if you’re a big movie fan, check out Stephen Rodrick’s piece in The New York Times magazine about the trials and tribulations renowned screenwriter-director Paul Schrader (Taxi Driver, Raging Bull, Affliction, et al.) had financing and making his new film, The Canyons, which stars that ever-intemperate actress Lindsay Lohan.
Meanwhile, below I’ve included a nice video clip summarizing IBM’s 20 successive years of patent leadership, and you can learn more about IBM’s patent efforts on our Tumblr site.
Well, I hope you and yours are having a happy holiday season, wherever in the world you may be.
I just returned from a wonderful visit to see my parents and some extended family up in my hometown of Denton, Texas, where we were treated to our first white Christmas in three years, the snow billowing down starting around mid-day Christmas Day, and plunging the Dallas/Ft. Worth roads into a virtual ice skating rink.
As for the Christmas holiday shopping season, Sarah Perez with TechCrunch just reported that Amazon.com once again came out on top, in terms of online satisfaction.
No big surprise there. I conducted a large portion of my own holiday shopping via Amazon, and received everything I ordered within a few days. I also treated myself to a set of Ben Hogan 1988 “redline” blade golf clubs, which I discovered on eBay for a very agreeable price. Unfortunately, the weather in Texas has kept me off the golf course (now back in Austin, I hope for that to change in the next few days!).
Of course, if you were trying to watch movies on Netflix on Monday, you might have found yourself watching a blank screen. Due to an Amazon Web Services outage, Netflix viewers were treated to bags full of coal starting around 3:30 PM on Monday, AWS’s third major outage this year.
Myself, I went on a “Redbox” binge over the holiday, discovering some recent titles for $1.20 a pop (including the latest Spiderman!), only to discover they’ll be bringing some competition to the streaming realm with the introduction of “Redbox Instant,” expected to go into private beta sometime soon. Redbox Instant is expected to match Netflix’s monthly streaming subscription price of $8 U.S.
Whatever your preference, it certainly looks like more and more Americans will be viewing filmed entertainment on devices other than their TVs. Another TechCrunch story reports that one in four Americans now owns a tablet computing device, with such devices now even having overtaken the number of e-reading devices like the Kindle (again, I did my fair share here over the holidays, giving out two Kindle Fire HDs as family gifts. Now I can only cross my fingers my family will use them!)
Regardless of your preference, the story goes on to say that one in three people in the U.S. now owns some kind of tablet or e-reading device, and this data before the full gamut of holiday shopping data has hit analysts’ spreadsheets.
One such analyst, Strategy Analytics, has Apple’s iPad still leading the pack, with Amazon and Samsung quickly narrowing that lead.
So what did Santa bring YOU for Christmas, and better yet, what did Santa YOU give others???
It’s that time of year. Google has released its 2012 Zeitgeist, telling us what’s on the minds of the world’s searchers.
Facebook, not to be out done, has released the Facebook Year In Review, ”a look back at the people, moments and things that created the most buzz in 2012 among the billion people around the world on Facebook.”
Now, go and ask folks what they think about Facebook’s everchanging privacy controls, and we’ll see if the Facebook Year In Review gets soon revised.
But I’m actually more interested in a big report from a small, but growing networking software and social business upstart located right here in Austin, Texas.
Spiceworks connects 2.2 million IT professionals with more than 1,300 technology brands, and offers its IT management software through a novel ad-supported model. In turn, it claims to “help businesses to discover, buy and manage $405 billion worth of technology products and services each year.”
Spiceworks just released its semi-annual “State of SMB IT Report,” a collection of statistics, trends and opinions from small and medium business technology professionals from amongst their community.
This December’s study is the seventh edition, and claims to “keep the pulse on the happenings of small and medium business IT professionals and IT departments.”
First, I’m just happy to discover they still have a pulse.
The National Federation of Independent Business’ “Small Business Optimism Index,” which is reported monthly, indicated in its November report one of the steepest declines in its history. In fact, it has reported a lower index value only seven times since it first conducted its monthly surveys in 1986.
The Index dropped a full 5.6 points in November, bottoming out at 87.5 (In 2000, by juxtaposition, it was well above 100), indicating something was rotten in November. The Index’s own Web statement suggested “it is very clear that a stunning number of [small business] owners…expect worse business conditions in six months,” and that nearly half are certain things will be worse next year than they are now, with a head nod to the looming fiscal cliff talks, the promise of higher healthcare costs, and the “endless onslaught of new regulations.”
Chicken Little, the SMB sky is falling!
Clouds, Virtualization, And Tablets Are Driving The SMB IT Spending Bus
But fear not, the SMB adoption of new technology is riding to the small business rescue, or so suggests the Spiceworks SMB IT study.
The headlines? Though IT budgets are on the rise in the SMB, hiring new staff is at a standstill. But for those still standing, in the last six months, SMBs adopted tablets and cloud services in fast-growing numbers.
Here are the four key findings:
- Tablet adoption keeps its momentum and nears smartphone levels. Hardware maintains the lion’s share of IT spend in the SMB.
- Adoption of cloud services spikes; desktop virtualization shows strong potential. (Can you say “Go long on VMWare??”)
- IT budgets reached their highest point in the last three years, while hiring freezes are up.
- BYOD is still a hot topic, though IT pros are split on the issue.
Diving down a bit, on the subject of tablets, 53 percent of SMBs now support tablets on their network, making them almost as popular as smartphones at 59 percent.
Cloud services are now used by 62 percent of SMBs, up from 48 percent in the first half of 2012.
With respect to IT budgets, they’re on the rise, averaging $162K, up from $152K in 1H 2012. But only 26 percent plan on hiring IT staff in the second half.
And on BYOD, whlie 14 percent fully embrace the trend, 32 percent say it works well for some devices, but not for others. Digging deeper, I discovered that smartphones led with 81 percent BYOD support, while tablets only garnered 62 percent.
And somewhat ironically, there’s more support for BYOD in much smaller organizations (defined here as less than 20 employees) than larger ones (50 percent in those above 250 employees).
I would encourage you to go here and register to download the full report, but the top line is this: If you’re an IT vendor looking for budget flush at the end of 2012, desktops, laptops, and servers are certainly low-hanging fruit, with tablets bringing on the most growth.
And on the software front, be on the lookout for disaster recovery and storage solutions (an IT mainstay through downturns), cloud-based solutions, and virtualization software.
Whatever you do make, just make sure you make those new purchases with “Gangnam Style” — and if you have no idea of what I’m referring to, see above with regards to the 2012 Google Zeitgeist!
Day 3 at Information On Demand 2012.
The suggestion to “Think Big” continued, so Scott Laningham and I sat down very early this morning with Nate Silver, blogger and author of the now New York Times bestseller, “The Signal and the Noise” (You can read the review of the book in the Times here).
Nate, who is a youngish 34, has become our leading statistician through his innovative analyses of political polling, but made his original name by building a widely acclaimed baseball statistical analysis system called “PECOTA.”
Today, Nate runs the award-winning political website FiveThirtyEight.com, which is now published in The New York Times and which has made Nate the public face of statistical analysis and political forecasting.
In his book, the full title of which is “The Signal and The Noise: Why Most Predictions Fail — But Some Don’t,” Silver explores how data-based predictions underpin a growing sector of critical fields, from political polling to weather forecasting to the stock market to chess to the war on terror.
In the book, Nate poses some key questions, including what kind of predictions can we trust, and are the “predicters” using reliable methods? Also, what sorts of things can, and cannot, be predicted?
In our conversation in the greenroom just prior to his keynote at Information On Demand 2012 earlier today, Scott and I probed along a number of these vectors, asking Nate about the importance of prediction in Big Data, statistical influence on sports and player predictions (a la “Moneyball”), how large organizations can improve their predictive capabilities, and much more.
It was a refreshing and eye-opening interview, and I hope you enjoy watching it as much as Scott and I enjoyed conducting it!
The news dam has begun to break at the IBM Information On Demand And Business Analytics Forum here in Vegas.
One of the highlights of today’s announcement was IBM’s unveiling of a new digital marketing system and big data software designed to help organizations gain actionable insights.
These tackle the most pressing big data challenges facing organizations today — accessing and gaining intelligence into an enormous stream of data generated from mobile, social and digital networks.
Big Data for Chief Marketing Officers
The emergence of big data technologies is driving the transformation of marketing for every channel. Chief Marketing Officers (CMOs) are now responsible for analyzing consumer demands from social media, mobile devices, and traditional channels and align these demands with product development and sales.
The new IBM Digital Analytics Accelerator helps CMOs tap into consumer sentiment to create targeted advertising and promotions, avoid customer churn, and perform advanced Web analytics that predict customer needs.
Now, CMOs can bring advanced analytics to all their social media, web traffic, and customer communication behind their own firewall.
The industry’s first big data solution in the digital marketing arena is powered by Netezza and Unica technologies. With this integrated offering that includes the recently announced PureData System for Analytics, clients can run complex analytics on petabytes of data in minutes, and arm marketing professionals with instant insights.
CMOs can use new insights to accelerate marketing campaigns and better meet consumer needs based on the broadest range of data.
Trident Marketing: Gaining Visibility Into Consumer Behaviors
For Trident Marketing, a direct response marketing and sales firm for leading brands such as DIRECTV, ADT and Travel Resorts of America, performing analytics on big data has helped the company gain unprecedented visibility into consumers — from predicting the precise moment in which to engage with customers to anticipating the likelihood a customer will cancel service.
Working with IBM and partner Fuzzy Logix, the company has realized massive growth including a tenfold increase in revenue in just four years, a ten percent increase in sales in the first 60 days, and decreased customer churn by 50 percent.