Who still use IBM services and products? If your boss buys IBM
stuff, he deserves to be a cuckold!
IBM is 3.6% lower in aftermarket trade after its Q1 revenues marked the 20th straight quarter of Y/Y declines, and missed expectations significantly.
Revenues fell 2.8% to $18.16B vs. an expected $18.39B, though EPS of $2.38 beat the Street.
Strategic imperatives revenue was up 12% to $7.8B, the company notes, and it rose to 42% of revenue over the past 12 months ($33.6B).
Revenue by segment: Cognitive Solutions, $4.06B (up 2.1%); Global Business Services, $4.01B (down 3%); Technology Services and Cloud Platforms, $8.22B (down 2.5%); Systems, $1.4B (down 16.7%); Global Financing, $405M (down 1.2%).
The company reiterated its guidance for the full year, of operating (non-GAAP) EPS of at least $13.80 (vs. consensus for $13.78) -- adjusting for acquisition-related charges of $0.75/share and non-operating retirement-related items of $1.10/share.
Net cash from operations was $4B for the quarter ($1.9B excluding Global Financing receivables). Free cash flow was $1.1B.
April 18th, 2017 9:14pm
IBM used to be the sort of company people aspired to work for when I started my career, now it's somewhere you go if you don't have much choice.
April 19th, 2017 5:30am
What was the last IBM product you bought and when?
I can't even remember.
April 19th, 2017 6:34am
In 1999 I tried to buy a CD with tooling documentation for our department from them (list price ƒ 125).
They responded that they would like to send a salesman who would give a presentation for a fee, for their documentation server software.
We gave up on the CD, as I had downloaded the content somewhere from their internet sites by then.
But in 1985 I had the offer to work at their physics research lab in Yorktown Heights, New York, for a year, but I turned it down because my son was just born and taking the family with we was not an option.
It was one of the top locations in solid state physics at the time, together with their lab in Zürich, where I saw their first 32-bit online system. Until then the online systems used 24-bit address spaces, and the extra memory was very important for our calculations. To use more than 16MB ram we had to submit batch jobs overnight, which was a pain when you were tweaking various parameters.
In SAP implementation they are still good, but for other thing I think their strategy is very muddled, hence the execution is bad as well.
April 19th, 2017 8:34am
I worked on a project where their own test automation tool was so bad they eventually had to throw it out and use a competitor.
April 19th, 2017 9:59am
IBM is a dinosaur, with management that's been propping up the company by eating the seed corn and outsourcing for about 20 years. Selling the PC division to China was just one symptom of this.
They've been hollowing the company out from the inside. Once this becomes clear to Wall-Street, even the vaunted IBM name won't save them any more.
April 19th, 2017 10:04am