Shulou(Shulou.com)11/24 Report--

Thanks to CTOnews.com netizen kkkkkkkkkayd for the clue delivery! Sina Science and Technology News Beijing time in the early morning of October 20, IBM today released the company's financial results for the third quarter of fiscal year 2022. According to the report, IBM's total revenue in the third quarter was $14.107 billion (about 101.57 billion yuan), an increase of 6 percent compared with $13.251 billion (about 95.407 billion yuan) in the same period last year. The net loss was $3.196 billion (about 23.011 billion yuan), compared with a net profit of $1.13 billion (about 8.136 billion yuan) in the same period last year, and a loss of $3.214 billion from continuing operations, compared with a profit of $1.130 billion from continuing operations in the same period last year. Operating profit from continuing operations, which is not in accordance with US GAAP, was $1.7 billion, down 1 per cent from the same period last year.

IBM's third-quarter revenue and adjusted earnings per share both beat Wall Street analysts' expectations and raised its forecast for full-year revenue growth in fiscal 2022, pushing its shares up more than 3 per cent in after-hours trading on Wednesday.

Key performance indicators:

IBM posted a net loss of $3.196 billion for the quarter ended September 30, 2022, compared with a net profit of $1.13 billion in the same period last year.

IBM posted a loss of $3.214 billion from continuing operations in the third quarter, compared with a profit of $1.13 billion from continuing operations in the same period last year, and a diluted loss of $3.54 per share, compared with diluted earnings of $1.25 per share in the same period last year. IBM's third-quarter profit from non-continuing operations was $18 million, compared with $93 million from non-continuing operations in the same period last year.

IBM's operating net income from continuing operations was $1.7 billion in the third quarter, down 1% from the same period last year, and diluted income per share from continuing operations was $1.81, down 2% from the same period last year, but it still beat analysts' expectations. On average, 12 analysts expect IBM to earn $1.77 a share in the third quarter, according to Yahoo Finance.

IBM's total revenue in the third quarter was $14.107 billion, up 6% from $13.251 billion in the same period last year, and 15% year-on-year growth excluding currency changes, exceeding analysts' expectations. On average, 10 analysts expect IBM's third-quarter revenue to reach $13.51 billion, according to Yahoo Finance.

IBM's pre-tax loss from continuing operations in the third quarter was $4.5 billion, with a pre-tax loss rate of 31.9%, down 38.0% from the same period last year. IBM's pre-tax profit from continuing operations was $2 billion in the third quarter, up 23% from the same period last year, and its pre-tax profit margin was 13.9%, up 1.8% from the same period last year.

IBM's total gross profit from continuing operations was $7.4 billion in the third quarter, up 5 per cent from the same period last year. IBM's total operating gross profit from continuing operations was $7.6 billion in the third quarter, up 4 per cent from the same period last year, not in accordance with US GAAP.

Costs and expenses:

IBM's total expenditure and other income from ongoing operations was $11.931 billion in the third quarter, compared with $6.293 billion in the same period last year. Of this total, sales, general and administrative expenses were $4.391 billion, compared with $4.306 billion in the same period last year; R & D and engineering expenditure was $1.611 billion, compared with $1.606 billion in the same period last year; intellectual property and customs development income was $121 million, compared with $153 million in the same period last year; and other expenditures were $5.755 billion, compared with $244 million in the same period last year. Interest expense was $295 million, compared with $290 million in the same period last year.

Performance of each department:

Revenue from IBM's software business, which includes hybrid platforms and solutions and transaction processing, was $5.811 billion in the third quarter of fiscal 2022, up 7.5 per cent from $5.406 billion in the same period last year, and 14.2 per cent year-on-year, excluding currency changes. The gross profit margin of the software business unit was 79.0%, compared with 78.6% in the same period last year.

Where:

-revenue from the hybrid platform and solutions business increased by 2% year-on-year, excluding exchange rate changes, by 8% year-on-year. Within the business: the revenue of the Red Hat division increased by 12% year-on-year, which increased by 18% year-on-year, excluding the impact of exchange rate changes; the revenue of the automation department decreased by 2% year-on-year, excluding the impact of exchange rate changes as a year-on-year growth of 3%; revenue of the data and AI departments decreased by 1% year-on-year, excluding exchange rate changes as a year-on-year growth of 4% Revenue in the security sector fell 1 per cent year-on-year, up 6 per cent year-on-year, excluding exchange rate changes.

-the revenue of the transaction processing business increased by 23% year-on-year, with 33% year-on-year growth excluding exchange rate changes.

Revenue from the IBM consulting business, which includes business transformation, technology consulting and applications, was $4.7 billion in the third quarter, up 5.4 per cent from $4.457 billion a year earlier, and 15.6 per cent year-on-year, excluding currency changes. The gross margin of the consulting business was 26.0 per cent, compared with 29.5 per cent in the same period last year.

Where:

-Business transformation revenue increased by 5% year-on-year, excluding exchange rate changes, 14% year-on-year growth

-Technical consulting revenue increased by 6% year-on-year, excluding exchange rate changes, by 17% year-on-year

-Application operating revenue increased by 6% year-on-year, with an increase of 17% year-on-year, excluding exchange rate changes.

Revenue from IBM's infrastructure business unit, which includes hybrid infrastructure and infrastructure support businesses, was $3.352 billion in the second quarter, up 14.8 per cent from $2.921 billion a year earlier, and 23.1 per cent year-on-year growth excluding currency changes. The gross margin of the infrastructure business unit was 50.8 per cent, compared with 52.8 per cent in the same period last year.

Where:

-revenue from the hybrid infrastructure business grew 33% year-on-year, with 41% year-on-year growth excluding exchange rate changes. Within this business, IBM z system revenue grew 88% year-on-year, excluding exchange rate changes, 98% year-on-year growth; distributed infrastructure revenue grew 13% year-on-year, excluding exchange rate changes, 21% year-on-year growth.

-revenue from the infrastructure support business fell 3% year-on-year, with an increase of 5% year-on-year excluding exchange rate changes.

Revenue from IBM's financing division, which includes customers and commercial finance, was $174 million in the second quarter, down 5.7 per cent from $184 million a year earlier, and 0.6 per cent year-on-year, excluding currency changes. The gross margin of the financing division was 32.8 per cent, compared with 28.7 per cent in the same period last year.

IBM's revenue from other business units was $70 million in the second quarter, compared with $282 million in the same period a year earlier.

Other financial information:

IBM's net cash from operating activities was $1.9 billion in the third quarter, and accounts receivable excluding IBM financing was $1.2 billion. IBM's free cash flow was $800 million in the third quarter. During the third quarter, IBM returned $1.5 billion in cash to shareholders in the form of dividends.

Over the past nine months, IBM's net cash from operating activities was $6.5 billion and accounts receivable excluding IBM financing was $5.4 billion. IBM's free cash flow over the past nine months was $4.1 billion, excluding the cash impact of structural actions launched at the end of the year.

At the end of the third quarter of 2022, IBM held $9.7 billion in cash, including marketable securities, an increase of $2.2 billion compared to the end of 2021; total debt, including $11.2 billion in the global finance division, was $50.9 billion, a decrease of $800m since the end of 2021.

Performance outlook:

IBM now expects revenue growth for the full year of fiscal 2022 to be higher than the 4-6 per cent range previously expected, excluding currency movements. In addition, IBM continues to forecast consolidated free cash flow of about $10 billion for the full year of fiscal 2022.

Stock price response:

On the day, IBM shares fell 43 cents, or 0.35%, to close at $122.51 in regular trading on the New York Stock Exchange. IBM shares rose $3.74, or 3.05 per cent, to $126.25 in after-hours trading as of 05:49 est on the 19th (05:49 Beijing time on the 20th). Over the past 52 weeks, the IBM has peaked at $144.73 and the lowest at $114.56.

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