Sony Pixel Power calrec Sony

IBM Reports 2018 First-Quarter Results

01/11/2018

London, UK - 17 Apr 2018: IBM (NYSE: IBM) today announced first-quarter results.

"In the first quarter we maintained momentum in our business, with reported revenue growth in total and across our major segments," said Ginni Rometty, IBM chairman, president and chief executive officer. "These results reinforce that our clients value our innovative technologies, our industry expertise and our commitment and actions for the responsible stewardship of their privacy and data. This is also reflected in our leadership positions in enterprise cloud, AI and security."

FIRST QUARTER 2018

Diluted EPS

Net Income

Pre-tax

Income

Gross Profit

Margin

GAAP from Continuing Operations

$1.81

$1.7B

$1.1B

43.2%

Year/Year

-2%

-4%

-20%

-0.5Pts

Operating (Non-GAAP)

$2.45

$2.3B

$1.7B

43.7%

Year/Year (includes Significant Items)

4%

2%

-14%

-0.7Pts

Year/Year Impact of Significant Items

-4Pts*

-4Pts**

-21Pts**

-0.4Pts

REVENUE

Total IBM

Strategic

Imperatives

Cloud

As-a-service annual

exit run rate

As reported (US$)

$19.1B

$9.0B

$4.2B

$10.7B

Year/Year

5%

15%

20%

25%

Year/Year adjusting for currency

0%

10%

14%

20%

* Year-to-year impact of actions to continue to reposition the business and discrete tax benefits

** Year-to-year impact of actions to continue to reposition the business

"The multi-year shift in our investment strategy is paying off as IBM leads in the emerging, high-value segments of the enterprise IT industry," said James Kavanaugh, IBM senior vice president and chief financial officer. "Revenue, operating net income and free cash flow increased in the quarter, with broad-based improvement in our gross margin trajectory, as we continue to deliver shareholder value."

Significant Items Impacting Earnings Growth

For the first quarter of 2018, pre-tax income was $1.1 billion and net income from continuing operations was $1.7 billion. Operating (non-GAAP) pre-tax income was $1.7 billion and operating (non-GAAP) net income was $2.3 billion. The year-to-year decrease of 14 percent in operating (non-GAAP) pre-tax income includes a negative impact of 21 points from actions to continue to reposition the business. The year-to-year increase of 2 percent in operating (non-GAAP) net income includes a negative impact of 4 points from these actions and discrete tax benefits.

IBM s reported GAAP and operating (non-GAAP) tax rates for the first quarter include a $0.8 billion discrete tax benefit. The company s reported GAAP tax rate also includes an additional provisional charge of $0.1 billion as a result of guidance issued in January 2018 by the Internal Revenue Service related to the enactment of the Tax Cuts and Jobs Act in December 2017. This charge is in addition to the provisional charge of $5.5 billion the company reported in its fourth-quarter 2017 earnings.

For the first quarter, IBM s ongoing GAAP and operating (non-GAAP) tax rates were approximately 14 percent and approximately 16 percent, respectively.

Strategic Imperatives Revenue

Strategic imperatives revenue over the last 12 months was $37.7 billion, up 12 percent (up 10 percent adjusting for currency). Total cloud revenue over the last 12 months was $17.7 billion, up 22 percent (up 20 percent adjusting for currency). The annual exit run rate for as-a-service revenue increased to $10.7 billion, up 25 percent (up 20 percent adjusting for currency). In the first quarter of 2018, revenues from analytics increased 9 percent (up 4 percent adjusting for currency); revenues from mobile increased 19 percent (up 14 percent adjusting for currency); and revenues from security increased 65 percent (up 60 percent adjusting for currency).

Cash Flow and Balance Sheet

In the first quarter, the company generated net cash from operating activities of $4.6 billion, or $2.2 billion excluding Global Financing receivables. IBM's free cash flow was $1.3 billion. IBM returned $2.2 billion to shareholders through $1.4 billion in dividends and $0.8 billion in gross share repurchases. At the end of March 2018, IBM had $3.0 billion remaining in the current share repurchase authorization.

IBM ended the first quarter of 2018 with $13.2 billion of cash on hand. Debt totaled $46.4 billion, including Global Financing debt of $31.7 billion. The balance sheet remains strong and is well positioned over the long term.

Segment Results for First Quarter

Cognitive Solutions (includes solutions software and transaction processing software) -- revenues of $4.3 billion, up 6 percent (up 2 percent adjusting for currency), driven by solutions software, including security, analytics, and industry platforms; and transaction processing software.

Global Business Services (includes consulting, global process services and application management) -- revenues of $4.2 billion, up 4 percent (down 1 percent adjusting for currency). Strategic imperatives revenue grew 12 percent led by the cloud consulting practice, with double-digit growth in analytics and mobile.

Technology Services & Cloud Platforms (includes infrastructure services, technical support services and integration software) -- revenues of $8.6 billion, up 5 percent (down 1 percent adjusting for currency). Strategic imperatives revenue grew 24 percent, driven by hybrid cloud services, security and mobile.

Systems (includes systems hardware and operating systems software) -- revenues of $1.5 billion, up 8 percent (up 4 percent adjusting for currency) driven by growth in IBM Z and Power.

Global Financing (includes financing and used equipment sales) -- revenues of $405 million, flat year to year (down 4 percent adjusting for currency).

Full-Year 2018 Expectations

The company continues to expect operating (non-GAAP) diluted earnings per share of at least $13.80. The company expects GAAP diluted earnings per share of at least $11.58. Operating (non-GAAP) diluted earnings per sh
LINK: http://www-03.ibm.com/press/uk/en/pressrelease/54467.wss...
See more stories from ibm

More from IBM

26/03/2024

IBM Announces EMEA Geography Winners of the 2024 IBM Partner Plus Awards

London, UK, March 26, 2024 Today, IBM (NYSE: IBM) announced the EMEA geography winners of the 2024 IBM Partner Plus Awards, which celebrate IBM partners who a...

21/02/2024

IBM Report: Cybercriminals Intensify Attacks on User Identities in the UK, Complicating Recovery Efforts for Enterprises

LONDON, UK, Feb 21, 2024 IBM today released the 2024 X-Force Threat Intelligen...

06/02/2024

New IBM LinuxONE 4 Express to Offer Cost Savings and Client Value through a Cyber Resilient Hybrid Cloud and AI Platform

LONDON, U.K., February 6, 2024 IBM (NYSE: IBM) today announced IBM LinuxONE 4 ...

18/01/2024

IBM to Acquire Application Modernization Capabilities from Advanced

Today, IBM is announcing that it has signed a definitive agreement to acquire application modernization capabilities from Advanced, bringing a combination of ta...

10/01/2024

UK Lags Leading Asian Economies on Enterprise AI Adoption - New IBM Study

LONDON and ARMONK, N.Y., January 10, 2024 New research commissioned by IBM (NYSE: IBM) found that more than a third of UK organisations with over 1,000 employ...

13/12/2023

NATO Selects IBM to Further Enhance Alliance's Cybersecurity Resilience

LONDON, UK, December 13, 2023 - Today, IBM (NYSE: IBM) signed a contract with the NATO Communications and Information Agency (NCI Agency) to help strengthen the...

05/12/2023

AWS Announces IBM Winner of the 2023 Global Systems Integrator Partner of the Year Award

LONDON, UK, 5 December, 2023 Amazon Web Services, Inc. (AWS), an Amazon.com co...

30/11/2023

IBM Advances Geospatial AI to Address Climate Challenges

LONDON, UK, Nov 30, 2023 IBM (NYSE: IBM) today announced new efforts that apply its geospatial AI technologies, including IBM's geospatial foundation mode...

22/11/2023

IBM Commits to Train 2 Million in Artificial Intelligence in Three Years, with a Focus on Underrepresented Communities

DUBLIN, 22 November, 2023 - To help close the global artificial intelligence (AI...

08/11/2023

New IBM Study Explores the Changing Role of Leadership as UK Businesses Embrace Generative AI

Wednesday 8 November, London: Today, IBM launched its new report Leadership in ...

27/10/2023

The Sunday Times: Why Big Blue is betting on an AI reboot

Arvind Krishna, Chairman and CEO of IBM, met recently with one of the UK's leading business editors in New York for a major profile interview. The Sunday T...

18/10/2023

IBM Expands Relationship with AWS to Bring Generative AI Solutions and Dedicated Expertise to Clients

LONDON, UK, October 18, 2023: IBM (NYSE: IBM) today announced an expansion of it...

13/09/2023

IBM Announced as Sponsor of 2023 U.N. Climate Change Conference (COP28)

LONDON, UK, September 13, 2023 IBM (NYSE: IBM) today announced its role as an Associate Pathway Partner of the 2023 United Nations Climate Change Conference (...

17/08/2023

IBM Consulting Collaborates with Microsoft to Help Companies Accelerate Adoption of Generative AI

LONDON, UK, August 17, 2023 - Today, IBM (NYSE: IBM) is expanding its collaborat...

14/08/2023

IBM Study: AI Drives Massive Shifts in Jobs and Skills as Employees Prioritise Meaningful Work

LONDON, UK, August 14, 2023 - Executives in the UK estimate that 41% of their wo...

24/07/2023

IBM Security Report: Cost of a Data Breach for UK Businesses Averages 3.4m

LONDON, UK. 24 July 2023 IBM Security today released its annual Cost of a Data Breach Report,1 which revealed that UK organisations pay an average of £3.4m fo...

20/07/2023

Crown Commercial Service and IBM Sign 3-Year Memorandum of Understanding to Boost Public Sector Services

The Crown Commercial Service (CCS) has announced a new 3-year Memorandum of Unde...

18/07/2023

Digital Realty Selects IBM Sustainability Software to Transform Data into Insights Across its Global Data Centers and Offices

LONDON, UK; July 18, 2023London, UK; July 18, 2023 - IBM (NYSE:IBM) today announ...

27/06/2023

IBM Study: CEOs Embrace Generative AI as Productivity Jumps to the Top of their Agendas

LONDON, UK, June 27, 2023 A new study by the IBM (NYSE: IBM) Institute for Bus...

21/06/2023

IBM Brings Generative AI Commentary and AI Draw Analysis to the Wimbledon Digital Experience

LONDON, U.K. and ARMONK N.Y., June 21, 2023 IBM (NYSE: IBM) and The All Englan...

19/05/2023

Diageo partners with IBM Consulting and SAP to drive its digital transformation initiative

IBM Consulting has been selected to revolutionise Diageo's IT environment by...

23/04/2023

IBM statement on the Confederation of British Industry

You may have seen recent media coverage relating to the Confederation of British Industry (CBI), the largest business association in the UK. IBM agrees with th...

17/04/2023

New IBM Study Reveals Inadequate Data Hinders Progress Against Environmental, Social and Governance Goals

LONDON, UK, April 17, 2023 - A new global IBM (NYSE: IBM) Institute for Business...

03/04/2023

IBM Statement on UK Government's AI Regulation White Paper

IBM is pleased to see the UK government making progress on its plans to develop a pro-innovation approach to AI regulation. Like similar approaches in Singapore...

14/03/2023

IBM launches RFP to help accelerate global water management solutions for vulnerable populations

LONDON, UK, March 1, 2023 - IBM (NYSE: IBM) announced today that it is accepting...

01/03/2023

IBM and Chief Study Finds Women in Leadership Pipeline has Hollowed Out in the Middle

LONDON, UK, March 1, 2023 - The leadership pipeline for women has hollowed out i...

22/02/2023

IBM Report: Vulnerable UK energy system among top targets for cybercriminals as businesses face growing extortion threat

ARMONK, N.Y. and LONDON, UK, FEBRUARY 22, 2023 IBM Security (NYSE: IBM) today ...

14/02/2023

New IBM survey reveals the greatest perceived barrier to professional or technical skill development is that programs are too expensive

London, 14th February 2023 Job seekers, students, and career changers around t...

09/01/2023

Nicola Hodson named Chief Executive, IBM in the UK and Ireland

London, 9 January 2023 IBM today announced that Nicola Hodson has been named Chief Executive, IBM in the UK and Ireland. Dr Hodson succeeds Sreeram Visvanatha...

25/10/2022

IBM Grants $500,000 in-kind to City of Dublin Education Training Board To Boost Cybersecurity Preparedness

October 25, 2022 - As schools become more dependent on technology, ransomware at...

28/09/2022

UK Business Leaders Say Hybrid Cloud is Critical to Modernisation, Yet Security, Skills and Compliance Concerns Impede Success

ARMONK, N.Y., September 28, 2022 New market research from IBM (NYSE: IBM) reve...

31/08/2022

REPROCELL, IBM and STFC harness the power of AI in drug discovery and precision medicine

Glasgow, UK and Daresbury, UK: REPROCELL Europe Ltd, IBM Research and STFC today...

27/07/2022

IBM Report: Consumers Pay the Price as Data Breach Costs Reach All-Time High

CAMBRIDGE, Mass., July 27, 2022 IBM Security today released the annual Cost of a Data Breach Report,[1] revealing costlier and higher-impact data breaches tha...

21/06/2022

IBM Reveals New AI and Cloud Powered Fan Experiences for Wimbledon 2022

London, 21st June, 2022 IBM (NYSE: IBM) and the All England Lawn Tennis Club today unveil new ways for Wimbledon fans around the world to experience The Champ...

18/05/2022

IBM Study: Skills Shortage Stalls UK's AI Adoption as Europe Accelerates

London, 18th May 2022 A global study from IBM (NYSE: IBM) has revealed UK businesses are not progressing their use of artificial intelligence (AI) at the same...

10/05/2022

IBM Study: Sustainability Ranks Among Highest Priorities on CEO Agendas, Yet Lack of Data Insights Hinders Progress

IBM Study: Sustainability Ranks Among Highest Priorities on CEO Agendas, Yet Lac...

13/07/2020

From Studio to Screen: How IBM Developed a Digital Showcase for Final-Year Students at University of the Arts London

From Studio to Screen: How IBM Developed a Digital Showcase for Final-Year Stude...

25/09/2019

CICS 50th Anniversary

CICS 50th Anniversary 19 September, 2019 | Written by: Nick Garrod...

18/09/2019

Rugby Football Union, IBM delivering a refreshed digital experience

Rugby Football Union, IBM delivering a refreshed digital experience 16 August, 2019 | Written by: John Kaduthodil Staying relevant, maintaining and exceedin...

18/09/2019

IBM's Internship program is helping Marwell Zoo improve its recycling with smart technology

IBM's Internship program is helping Marwell Zoo improve its recycling with s...

09/07/2019

IBM Closes Landmark Acquisition of Red Hat for $34 Billion; Defines Open, Hybrid Cloud Future

London - 09 Jul 2019: - Acquisition positions IBM as the leading hybrid cloud p...

03/07/2019

Moorfields Eye Hospital launches first virtual assistant to connect with patients

London - 02 Jul 2019: Moorfields Eye Hospital NHS Foundation Trust (Moorfields)...

13/06/2019

Wimbledon & IBM Herald The Role of AI to Maintain a Competitive Advantage in Sports Landscape

London, UK - 13 Jun 2019: The All England Lawn Tennis Club (AELTC) and IBM toda...

14/02/2019

SPF Private Clients introduces its First AI Mortgage Advisor Built on IBM Watson and IBM Cloud

London, UK - 14 Feb 2019: Ava was created to handle the significant increase in...

07/12/2018

University of Liverpool and IBM sign a Joint Study Agreement for Research and Innovation

London, UK - 28 Nov 2018: A major part of this new relationship is the Joint St...

08/11/2018

IBM and RFU sign new innovations deal

London, UK - 31 Oct 2018: The Rugby Football Union (RFU) has today announced that it has signed a new agreement with IBM for four years as an official partner ...