Turbotodd

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

Posts Tagged ‘emerging markets

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

Out Of Africa, Or In?

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There’s been a lot of very exciting news from IBM out of Africa of late, where IBM is actively expanding its operations as part of its continued geographic expansion to increase its presence in key growth markets.

Just earlier today, IBM announced details of a $3M deal with the Commercial Bank of Ethiopia to support the bank in a major modernization and business expansion program.

With its new IT infrastructure, the bank plans to increase its number of accounts by 25 percent per year, launch 200 new ATMs per year, and open 500 new branches over the next five years.

That’s just one recent example.

IBM also opened subsidiary offices in Tanzania and Senegal this year, and IBM now has a direct presence in over 20 African countries (with more offices planned).

IBM also recently announced a deal with Bharti airtel to create an integrated telecommunications infrastructure to enable mobile phone communications throughout 16 countries in sub-Saharan Africa.

If you visit here, you can learn more about IBM’s numerous African-related announcements over the past two years. There, you can also hear directly from some African citizens and IBMers about IBM’s Corporate Service Corps initiatives in Africa.

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