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IBM sees 19th quarter of falling revenue

by on20 January 2017


Still better than Wall Street predicted


Biggish Blue has reported its 19th straight quarter of declining revenue, but forecast full-year earnings above what the cocaine nose jobs of Wall Street thought.

The company's revenue fell 1.3 percent to $21.77 billion in the quarter ended December 31, but beat analysts' expectations of $21.64 billion.

The better figures were thanks to growth in newer areas such as cloud-based services and analytics.

Investments to drive growth in the cloud business and the company's shift to a subscription-based as-a-service model hit its operating gross margin by 1.8 percentage points to 51 percent in the fourth quarter.

IBM’s forecast adjusted earnings of at least $13.80 per share for fiscal 2017, beat the average analyst estimate of $13.74.

Chief Executive Gini Rometty's transition efforts have shown revenue growth across some areas in recent quarters, with newer businesses driving the efforts.

Revenue from "strategic imperatives", which includes cloud and mobile computing, data analytics, social and security software, rose 11 percent to $9.5 billion in the fourth quarter, from a year earlier. It contributed 41 percent to IBM's total revenue in 2016.
Cloud computing revenue across IBM's segments rose 33 percent. The business includes services such as SoftLayer, which leases online storage space to companies, as well as the BlueMix cloud platform.

Last modified on 20 January 2017
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