IBM has recorded its twenty second consecutive quarter of revenue decline (albeit just), after its Q3 sales dropped 0.4 per cent to $19.15bn. Gross profit declined by 2.4 per cent to $8.8bn. We've picked out the top four points from the financial report and the subsequent earnings call, transcribed by Seeking Alpha.
Consecutive losses hit 22 quarters
Big Blue has now not reported a quarter of growth for five and a half years, but it came close in Q3, seeing a decline of 0.4 per cent - which CFO Martin Schroeter referred to as "roughly flat".
IBM's Global Business Services division; Technology Services and Cloud Platform division; and Global Financing division all saw year-on-year declines, with the Cognitive Solutions and Systems divisions the only two to see growth.
As has become routine, the UK was picked out as a problem child - but where it was usually grouped with Germany, this time it was out in the cold on its own.
"We had year-to-year growth in Germany, France, Italy and Spain, mitigated by declines in the UK," Schroeter said.
By CRN's calculations (and those of thisdayinmusic.com) IBM has not reported a growth quarter since Carly Rae Jepsen was top of the UK singles charts with Call me Maybe.
But there was cause for optimism…
A revival could be imminent
Despite the decline IBM's share price rose around five per cent after the results were released, after Schroeter said the vendor expects to see its revenue grow between $2.8bn and $2.9bn in Q4, compared to Q3.
If this is the case IBM's revenue would grow 1.4 per cent on same quarter in 2016, returning it to growth for the first time since 2012.
IBM said the growth will come from what it dubs ‘strategic imperatives' - the likes of artificial intelligence and cloud - but also expects results to be propped up by its mainframe business.
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