The company is known as “Big Blue”, abut its results from its most recent quarter may turn it black and blue.
International Business Machines (NYSE:IBM) reported first-quarter numbers Monday night, and GAAP EPS from continuing operations were $1.31
Operating (non-GAAP) EPS of $1.84, while revenue was $17.6 billion, down 3.4%.
IBM’s Cloud & Cognitive Software was up 5% (up 7% adjusting for currency). Total cloud revenue of $5.4 billion, up 19% (up 23% adjusting for divested businesses and currency). Cloud revenue of $22 billion over last 12 months, up 13% (up 16% adjusting for divested businesses and currency)
Red Hat revenue, up 18% (up 20% adjusting for currency), normalized for historical comparability.
Said Arvind Krishna, IBM CEO, “IBM remains focused on helping our clients adapt to the immediate challenges of the COVID-19 pandemic, while we continue to enable them to shift their mission-critical workloads to hybrid cloud and expand their use of AI to help transform their operations.”
“Our first-quarter performance in cloud is a reflection of the trust clients place in IBM’s technology and expertise today, and positions us to continue building an enduring hybrid cloud platform for the future.”
GAAP gross profit margin was up 90 basis points; Operating (non-GAAP) gross profit margin up 150 basis points
Net cash from operating activities was $14.5 billion and free cash flow of $11.6 billion, over the last 12 months. IBM is withdrawing its full-year 2020 guidance in light of the current COVID-19 crisis. The company will reassess this position based on the clarity of the macroeconomic recovery at the end of the second quarter.
IBM shares were battered $5.60, or 4.6%, to $114.85