As col­lapse of IBM con­tin­ues, CEO un­der

Financial Mirror (Cyprus) - - FRONT PAGE - By Dou­glas McIntyre

As In­ter­na­tional Busi­ness Ma­chines Corp.’s (NYSE: IBM) fi­nan­cial re­sults con­tinue a re­mark­able col­lapse, its CEO, Ginni Rometty, be­comes ever more op­ti­mistic in her view of the com­pany’s fu­ture. Rometty’s public com­ments are ei­ther a sign of self-delu­sion or a means to keep a job on which her grip weak­ens by the quar­ter.

Con­sider that IBM posted a 13.5% drop in rev­enue to $20.8 bln in the sec­ond quar­ter and that net in­come fell 16.6% to $3.6 bln.

Mea­sure that against her re­ac­tion: “Our re­sults for the first half of 2015 demon­strate that we con­tinue to trans­form our busi­ness to higher value and re­turn value to share­hold­ers. We ex­panded mar­gins, con­tin­ued to in­no­vate across our port­fo­lio and de­liv­ered strong growth in our strate­gic im­per­a­tives of cloud, an­a­lyt­ics and en­gage­ment, which are be­com­ing a sig­nif­i­cant part of our busi­ness.”

The marks of the trans­for­ma­tion are that sales across ev­ery ma­jor IBM di­vi­sion fell last quar­ter.

Rometty’s ex­cuse for re­sults is that the com­pany has en­tered new busi­nesses that show prom­ise: “Rev­enues from the com­pany’s strate­gic im­per­a­tives — cloud, an­a­lyt­ics, and en­gage­ment — in­creased more than 20% year-to­date (more than 30% ad­just­ing for cur­rency and the di­vested Sys­tem x busi­ness). To­tal cloud rev­enues in­creased more than 50% (more than 70% ad­just­ing for cur­rency and the di­vested Sys­tem x busi­ness) yearto-date, and is $8.7 bln over the last 12 months, ad­justed for the di­vested Sys­tem x busi­ness. The an­nual run rate for cloud de­liv­ered as a ser­vice — a sub­set of the to­tal cloud rev­enue — in­creased to $4.5 bln from $2.8 bln in the sec­ond quar­ter of 2014. Rev­enues from busi­ness an­a­lyt­ics in­creased more than 10% (more than 20% ad­just­ing for

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