Turbotodd

Ruminations on tech, the digital media, and some golf thrown in for good measure.

Posts Tagged ‘earnings

IBM 1Q 2013 Earnings

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I was sitting here at JFK waitin’ on a plane and IBM’s 1Q 2013 earnings came across the wire, so here goes:

  • Diluted EPS: GAAP: $2.70, up 3 percent; Operating (non-GAAP): $3.00, up 8 percent
  • Net income: GAAP: $3.0 billion, down 1 percent; Operating (non-GAAP): $3.4 billion, up 3 percent
  • Gross profit margin: GAAP: 45.6 percent, up 0.6 points; Operating (non-GAAP): 46.7 percent, up 1.0 points
  • Revenue: $23.4 billion, down 5 percent, down 3 percent adjusting for currency
  • Free cash flow of $1.7 billion, down $0.2 billion
  • Software revenue flat, up 1 percent adjusting for currency; Pre-tax: income up 4 percent; margin up 1.2 points
  • Services revenue down 4 percent, down 1 percent adjusting for currency; Pre-tax: income up 10 percent; margin up 2.0 points
  • Services backlog of $141 billion, up 1 percent, up 5 percent adjusting for currency; Closed 22 deals of more than $100 million in the quarter
  • Systems and Technology revenue down 17 percent, down 16 percent adjusting for currency
  • Growth markets revenue down 1 percent, up 1 percent adjusting for currency
  • Business analytics revenue up 7 percent; Smarter Planet revenue up more than 25 percent; Cloud revenue up more than 70 percent
  • Reiterating full-year 2013 operating (non-GAAP) EPS expectation of at least $16.70.

IBM announced first-quarter 2013 diluted earnings of $2.70 per share, a year-to-year increase of 3 percent.  Operating (non-GAAP) diluted earnings were $3.00 per share, compared with operating diluted earnings of $2.78 per share in the first quarter of 2012, an increase of 8 percent.

First-quarter net income was $3.0 billion, down 1 percent year-to-year. Operating (non-GAAP) net income was $3.4 billion compared with $3.3 billion in the first quarter of 2012, an increase of 3 percent. Total revenues for the first quarter of 2013 of $23.4 billion were down 5 percent (down 3 percent, adjusting for currency) from the first quarter of 2012. 

“In the first quarter, we grew operating net income, earnings per share and expanded operating margins but we did not achieve all of our goals in the period. 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.  The services business performed as expected with strong profit growth and significant new business in the quarter,” said Ginni Rometty, IBM chairman, president and chief executive officer.

“Looking ahead, in addition to closing those transactions, we expect to benefit from investments we are making in our growth initiatives and from the actions we are taking to improve under-performing parts of the business.  We remain confident in this model of continuous transformation and in our ability to deliver our full-year 2013 operating earnings per share expectation of at least $16.70.” 

Pre-tax income decreased 6 percent to $3.6 billion.  Pre-tax margin decreased 0.1 points to 15.4 percent.  Operating (non-GAAP) pre-tax income decreased 1 percent to $4.1 billion and pre-tax margin was 17.4 percent, up 0.8 points.

IBM’s tax rate was 15.9 percent, down 4.1 points year over year; operating (non-GAAP) tax rate was 17.3 percent, down 3.2 points compared to the year-ago period. The lower tax rate is primarily due to benefits recorded to reflect changes in tax laws enacted during the quarter, including the reinstatement of the U.S. Research and Development Tax Credit.

Net income margin increased 0.5 points to 13.0 percent.  Total operating (non-GAAP) net income margin increased 1.2 points to 14.4 percent.

The weighted-average number of diluted common shares outstanding in the first-quarter 2013 was 1.12 billion compared with 1.17 billion shares in the same period of 2012.  As of March 31, 2013, there were 1.11 billion basic common shares outstanding.

Debt, including Global Financing, totaled $33.4 billion, compared with $33.3 billion at year-end 2012.  From a management segment view, Global Financing debt totaled $25.2 billion versus $24.5 billion at year-end 2012, resulting in a debt-to-equity ratio of 7.2 to 1.  Non-global financing debt totaled $8.2 billion, a decrease of $0.6 billion since year-end 2012, resulting in a debt-to-capitalization ratio of 34.3 percent from 36.1 percent.

IBM ended the first-quarter 2013 with $12.0 billion of cash on hand and generated free cash flow of $1.7 billion, excluding Global Financing receivables, down approximately $0.2 billion year over year.  The company returned $3.5 billion to shareholders through $0.9 billion in dividends and $2.6 billion of gross share repurchases.  The balance sheet remains strong, and the company is well positioned to support the business over the long term.

Written by turbotodd

April 18, 2013 at 3:37 pm

IBM 4Q 2012 Earnings Rise On Software Sales

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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:

Fourth-Quarter 2012

Diluted EPS:

GAAP: $5.13, up 11 percent;

Operating (non-GAAP): $5.39, up 14 percent;

Net income:

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;

Net income:

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.

Written by turbotodd

January 22, 2013 at 9:45 pm

IBM Announces 3Q 2012 Earnings

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IBM’s 3Q 2012 earnings were just announced, with diluted earnings of $3.33 per share, a year-to-year increase of 4 percent, or $3.44 per share, up 8 percent excluding the impact of UK pension-related charges.

Operating (non-GAAP) diluted earnings were $3.62 per share, compared with operating diluted earnings of $3.28 per share in the third quarter of 2011, an increase of 10 percent.

Total revenues for the third quarter of 2012 of $24.7 billion were down 5 percent (down 2 percent, adjusting for currency) from the third quarter of 2011. Currency negatively impacted revenue growth by nearly $1 billion.

IBM chairman, president, and CEO Ginny Rometty had this to say about the quarter’s financial performance: “In the third quarter, we continued to drive margin, profit, and earnings growth through our focus on higher-value businesses, strategic growth initiatives, and productivity.

“Looking ahead, we see good opportunity with a strong product lineup heading into this quarter and annuity businesses that provide a solid base of revenue, profit, and cash. We are reiterating our full-year 2012 operating earnings per share expectation of at least $15.10.”

Following are further highlights from the quarter:

Diluted EPS:

  • GAAP: $3.33, up 4 percent; $3.44, up 8 percent excluding UK pension-related charges;
  • Operating (non-GAAP): $3.62, up 10 percent;

Net income:

  • GAAP: $3.8 billion, flat; $3.9 billion, up 3 percent excluding UK pension-related charges;
  • Operating (non-GAAP): $4.2 billion, up 5 percent;

Gross profit margin:

  • GAAP: 47.4 percent, up 0.9 points;
  • Operating (non-GAAP): 48.1 percent, up 1.2 points;

Revenue: $24.7 billion, down 5 percent, down 2 percent adjusting for currency;

  • Negative currency impact of nearly $1 billion;
  • Divestiture of Retail Store Solutions (RSS) reduced revenue by 1 percent;

Software revenue down 1 percent, up 3 percent adjusting for currency;

Services revenue down 5 percent, flat adjusting for currency;

Services backlog of $138 billion, up 1 percent;

Systems and Technology revenue down 13 percent, down 12 percent adjusting for currency;

Growth markets revenue down 1 percent, up 4 percent adjusting for currency;

  • BRIC countries up 4 percent, up 11 percent adjusting for currency;

Business analytics revenue up 14 percent year to date;

Smarter Planet revenue up more than 20 percent year to date

Cloud revenue year to date has exceeded full-year 2011 revenue;

Reiterating full-year 2012 operating (non-GAAP) EPS expectation of at least $15.10.

Written by turbotodd

October 16, 2012 at 8:38 pm

IBM 2Q 2012 Earnings: $3.51 EPS (Up 14% YOY), $25.8 Billion Revenue

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IBM 2012 second quarter earnings were just released, and IBM’s operating earnings per share (non-GAAP) came in above expectations at $3.51/share, a 14 percent increase YOY.

Revenue came in at $25.8 billion, down 3 percent YOY, but up 1 percent YOY when adjusted for common currency.

Operating net income was $4.1 billion, up 8 percent YOY, and free cash flow came in at $3.7 billion, up 9 percent YOY.

Second quarter segment highlights included software revenue led by Europe, Japan and the growth markets, and services profit, which was up 18 percent (with the services backlog flat at constant currency).

IBM’s software business reported revenues of $6.2 billion, which were up 4 percent when adjusted for common currency.

Once again, the WebSphere brand led the way, coming in at 3 percent growth YOY (7 percent when adjusted for common currency).

The Tivoli brand grew 2 percent YOY, 6 percent when adjusted for common currency. Overall gross margins for the software business were flat at 88.4 percent, but pre-tax income was $2.5 billion, up some 8 percent YOY.

IBM’s Systems and Technology group revenues were negatively impacted by the product cycle, coming in down 9 percent YOY, but STG gained share in the POWER systems segment.

IBM saw continued strength in its growth initiatives, with growth markets realizing YTD revenue growth of 9 percent YOY when adjusted for constant currency, and its business analytics business up 13 percent YOY.

Cloud computing revenue doubled YOY, and Smarter Planet revenue grew by over 20 percent YOY.

IBM’s annuity business provided a solid base of revenue, profit, and cash, and productivity initiatives drove structural improvements and helped contribute to IBM’s margin expansion.

Following is what IBM CEO Ginny Rometty had to say about IBM’s 2Q 2012 earnings:

“In the second quarter, we delivered strong profit, earnings per share and free cash flow growth. This performance reflects continued strength in our growth initiatives and investments in higher value opportunities,” said Ginni Rometty, IBM president and chief executive officer. “These are fundamental elements of our long-term business model.

“Looking ahead, we are well positioned to deliver greater value to a wider range of clients and to our shareholders. Given our performance in the first half and our outlook for the second half, we are raising our full-year operating earnings per share expectations to at least $15.10.”

Written by turbotodd

July 18, 2012 at 8:35 pm

Into The Amazon Digital Jungle

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Whoa, what ants got into Amazon.com’s pants this quarter??

Amazon announced earnings earlier today, and though profits for the first quarter dropped 35 percent to $130 million from last year’s same quarter, revenue jumped 34 percent to $13.2 billion, beating the Street’s expectations.

Is this a bellwether indicator for e-commerce en generale, or is it isolated to the ‘Zon?

Hard to say, but The Wall Street Journal is reporting that part of Amazon’s spending has gone towards making itself operate more efficiently.  If you remember, Amazon spent a cool $775 million to buy Kiva Systems last month, which is intended to help them automate and lower their warehouse operations costs.

The Journal story’s also highlighting the fact that the e-commerce market in general “has been strong,” with Amazon reporting particularly good sales for digital goods, including e-books and online video (which, read, means little to no distribution costs other than bandwidth!)

In Amazon’s earnings press release, Amazon pointed out that “9 out of 10 top sellers on Amazon.com were digital products — Kindle, Kindle books, movies, music and apps.”

In the quarter, Amazon also introduced a new version of its Kindle for iPad app, which is the #5 free iPad app of all time and the #1 free books app on iPad.

The Amazon left jab strikes Apple on the chin! Pow!

The Kindle, retailing for $199 through Amazon, continues to be the company’s best-selling product, and the most “gifted.”

I may have even contributed to the strong quarter with a few Amazon purchases meself, come to think of it!

For my money (what little I have left of it after shopping with Amazon), this digital trend is a larger barometric indicator — folks are finally getting more comfortable with consuming books and other media in digital formats, and though it certainly has a negative impact on the “traditional” media industries on one side of the balance sheet, that starts to get offset as the digital column increases.

Of course, I haven’t even gotten to some of the social commerce trends which Amazon is also likely benefiting from (mentions via Facebook, Twitter, etc.) and their own leading adoption of customer ratings and reviews.

Click, mortar, AND pixels is the name of the game for smarter commerce, something IBM thought leaders will be discussing at the upcoming IBM Global Smarter Commerce Summit in Madrid May 22-24th.

More on that in a prior post here.

IBM Q1 2012 Earnings Out, Full Year Earnings Guidance Raised

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IBM just released its first quarter earnings announcement, which came in with diluted earnings of $2.61 per share, compared to $2.31 per share in the first quarter of last year, a 13% year-over-year increase.

First quarter income was $3.1 billion compared with $2.9 billion in the first quarter of 2011, an increase of 7 percent.

Total revenues for the first quarter of 2012 $24.7 billion, flat year over year but up 1 percent when adjusting for currency.

Here’s the top line:

  • Diluted EPS:
    • GAAP: $2.61, up 13 percent;
    • Operating (non-GAAP): $2.78, up 15 percent;
  • Net income:
    • GAAP: $3.1 billion, up 7 percent;
    • Operating (non-GAAP): $3.3 billion, up 9 percent;
  • Gross profit margin:
    • GAAP: 45.1 percent, up 0.9 points;
    • Operating (non-GAAP): 45.7 percent, up 1.2 points;
  • Revenue: $24.7 billion, flat, up 1 percent adjusting for currency;
  • Free cash flow of $1.9 billion, up $1.1 billion;
  • Software revenue up 5 percent, 7 percent adjusting for currency;
  • Services revenue up 1 percent:
    • Services pre-tax income up 11 percent;
  • Services backlog of $139 billion, down 2 percent, up 1 percent adjusting for currency;
  • Systems and Technology revenue down 7 percent, 6 percent adjusting for currency;
  • Growth markets revenue up 9 percent;
  • Business analytics revenue up 14 percent;
  • Smarter Planet revenue up more than 25 percent;
  • Cloud revenue doubled first-quarter 2011 revenue;
  • Full-year 2012 operating (non-GAAP) EPS expectations raised to at least $15.00 from at least $14.85.

“In the first quarter, we drove strong profit and earnings per share growth. We delivered another excellent software performance, expanded services margins, and continued the momentum in our growth initiatives,” said Ginni Rometty, IBM president and chief executive officer. “Our investments in growth market countries continued to generate strong revenue growth across software, hardware and services while contributing to the company’s ongoing margin expansion.

“Based on this performance, we are raising our 2012 full-year operating earnings per share expectations to at least $15.00.”

Written by turbotodd

April 17, 2012 at 8:30 pm

IBM 4Q 2011 And Full Year Earnings, Diluted EPS Up $4.71 (11%)

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I was on an airplane back from attending Lotusphere in Orlando when the IBM earnings hit, so here’s the quick top line

The headline: Systems and Technology Group reported an 8% decline in revenue, but IBM Software segment revenue was up 9%.  Technology and business services (GBS) both rose 3%, and revenue in the BRICs grew 7% as reported. Revenue in the Americas was up 3%, while in EMEA growth was at 1% and Asia at 2%.

  • Diluted EPS:
    • GAAP: $4.62, up 11 percent;
    • Operating (non-GAAP): $4.71, up 11 percent;
  • Net income:
    • GAAP: $5.5 billion, up 4 percent;
    • Operating (non-GAAP): $5.6 billion, up 5 percent;
  • Gross profit margin:
    • GAAP: 49.9 percent, up 0.9 points;
    • Operating (non-GAAP): 50.2 percent, up 1.1 points;
  • Revenue of $29.5 billion, up 2 percent as reported, 1 percent adjusting for currency;
  • Software revenue up 9 percent;
  • Global Technology Services revenue up 3 percent;
  • Global Business Services revenue up 3 percent, 2 percent adjusting for currency;
  • Services backlog of $141 billion, up $4 billion as reported, up $5 billion adjusting for currency, quarter to quarter;
  • Systems and Technology revenue down 8 percent.

Full-Year 2011:

  • Diluted EPS, up double-digits for 9th consecutive year;
    • GAAP: $13.06, up 13 percent;
    • Operating (non-GAAP): $13.44, up 15 percent;
  • Net income:
    • GAAP: $15.9 billion, up 7 percent;
    • Operating (non-GAAP): $16.3 billion, up 9 percent;
  • Revenue of $106.9 billion, up 7 percent, up 3 percent adjusting for currency;
  • Free cash flow of $16.6 billion, up $300 million;
  • Growth markets revenue up 16 percent, up 11 percent adjusting for currency;
  • Business analytics revenue up 16 percent;
  • Smarter Planet revenue up 47 percent;
  • Cloud revenue more than tripled 2010 revenue.

 

Written by turbotodd

January 19, 2012 at 10:07 pm

Posted in earnings

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