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

CTOnews.com January 26, IBM released the fourth quarter of 2022 results, said that 2022 Q4 adjusted earnings per share of $3.60, revenue of $16.7 billion, slightly better than the market expected. On average, analysts expect IBM to earn $3.59 a share on revenue of $16.15 billion.

For all of 2022, IBM's adjusted earnings per share were $7.93 on revenue of $60.53 billion, up more than 6 per cent from 2021 and the biggest annual increase since 2011.

IBM said on Wednesday that it would cut 3900 jobs, or about 1.5 per cent of its workforce, as part of a partial divestiture. And revenue was flat in the fourth quarter because of sluggish demand for its consulting services. IBM shares fell nearly 2.5 per cent at one point in after-hours trading on the news.

CTOnews.com learned that IBM spun off its large and lagging managed infrastructure business (now known as Kyndryl) at the end of 2021 to focus on its hybrid cloud, helping customers build their own combinations of data centers and leased computing resources. It also spun off its healthcare data and analytics business from its AI business, Watson Health.

The resulting layoffs will cost $300m between January and March, IBM said. But James Kavanaugh, the company's chief financial officer, said IBM would continue to recruit in key areas.

IBM's free cash flow is expected to reach $10.5 billion in fiscal year 2023. The company also predicts that annual revenue growth at fixed exchange rates will be in the middle single digits, down from the 12 per cent reported last year, as demand for digital services caused by the epidemic has given way to customers spending more cautiously in the face of growing fears of a recession.

IBM said in October that new orders in Western Europe were weak and analysts downgraded their forecasts.

Kavanaugh says its consulting business is growing in terms of cloud spending. Its deals to build services with partners such as Amazon AWS and Microsoft Azure doubled in 2022.

IBM hybrid cloud revenue grew 2 per cent to $6.3 billion in the quarter ended December 31. Revenue from IBM's hybrid cloud business was $22.4 billion in 2022, up 11% from a year earlier.

Revenue from the BM software division rose 2.8 per cent to $7.29 billion in the fourth quarter from a year earlier, while revenue from the infrastructure division rose 1.6 per cent to $4.48 billion. Revenue from IBM consulting rose 0.5 per cent year-on-year to $4.77 billion in the fourth quarter. Revenue from Red Hat, acquired by IBM, rose 10 per cent year-on-year, down from 20 per cent.

The 110-year-old company, which derives more than half of its revenue from outside the US, said it expected the foreign exchange impact this year to have a neutral impact on its business as the dollar weakens. It recorded a foreign exchange loss of more than $1 billion in the fourth quarter.

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