IBMs first quarter net profit of $17.6 billion fell 26percent year on year

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 IBMs first quarter net profit of $17.6 billion fell 26percent year on year


IBM reported a 19% increase in revenue in the cloud and cognitive software sectors to $5.4 billion. This growth was driven mainly by red hat, which contributed $719 million to IBMs sales during the period after the acquisition related financial adjustments. IBMs global technical services sales were $6.5 billion, down 5.9% year-on-year. The global business services business also declined slightly to $4.14 billion, less than 1% lower than the same period last year. Revenue from system hardware and operating systems totaled $1.37 billion, up 3% year-on-year.

IBM also announced in a statement that it would withdraw its full year performance forecast. Last quarter, IBM forecast adjusted earnings per share of at least $13.35 in 2020. Analysts had expected adjusted earnings per share of $11.73, according to data. Three months ago, the company also expected revenue, adjusted earnings and free cash flow to grow in 2020, while increasing operating gross margin.

Novel coronavirus (ArvindKrishna), which is taking over Luo Ruilan as chief executive officer earlier this month, is facing the economic shock of leading GinniRometty through the new coronavirus, ArvindKrishna. Many companies have delayed major IT purchases to avoid projects that are expensive, complex, or interfere with existing business processes. Even before the outbreak, IBM had been trying to continue to increase sales.

IBM has been striving to increase the revenue share of hybrid cloud software and services, which allow customers to store data on private servers and multiple public clouds, including data from IBM competitors Amazon and Microsoft. IBM remains focused on helping our customers adapt to the immediate challenges of the epidemic, while we continue to enable them to move mission critical workloads to the hybrid cloud and expand their use of AI to help them transform their business, Krishna said in a statement

Krishna continued: my approach is straightforward, focusing on enhancing the value of the company. This includes better aligning our product portfolio around hybrid cloud and AI to meet the changing needs of the market. We will continue to invest, including acquisitions. We have divested some software and services that are not in line with our focus business, and this situation will continue.

IBMs after hours trading fell nearly 4% after its first quarter results showed revenue continued to decline as the new crown epidemic spread. (small)

Source: Qiao JunJing, editor in charge of Netease Technology Report