IBM Reports 2019 Third-Quarter Results

October 17, 2019

ARMONK, N.Y., Oct. 17, 2019 — IBM today announced third-quarter results.

“In the third quarter, as we continued to help clients with their digital reinventions, we grew revenue in our Cloud & Cognitive Software segment and in Global Business Services,” said Ginni Rometty, IBM chairman, president and chief executive officer.  “Our results demonstrate that clients see IBM and Red Hat as a powerful combination and they trust us to provide them with the open hybrid cloud technology, innovation and industry expertise to help them shift their mission-critical workloads to the cloud.”

“We continued our focus on the strength of our balance sheet in the third quarter,” said James Kavanaugh, IBM senior vice president and chief financial officer.  “We generated $12.3 billion in free cash flow over the last 12 months and with our disciplined financial management we reduced debt by nearly $7 billion in the quarter, while maintaining a strong cash balance.”

Cash Flow and Balance Sheet

In the third quarter, the company generated net cash from operating activities of $3.6 billion, or $2.5 billion excluding Global Financing receivables.  IBM’s free cash flow was $1.8 billion.  IBM returned $1.6 billion to shareholders through $1.4 billion in dividends and $0.1 billion in gross share repurchases.  The company suspended its share repurchase program on July 9.

IBM ended the third quarter with $11.0 billion of cash on hand.  Debt, including Global Financing debt of $23.1 billion, totaled $66.3 billion – down $6.7 billion since the end of the second quarter.

Segment Results for Third Quarter

  • Cloud & Cognitive Software (includes cloud and data platforms which includes Red Hat; cognitive applications; and transaction processing platforms) — revenues of $5.3 billion, up 6.4 percent (up 7.8 percent adjusting for currency), led by security, IoT, data and AI platforms and hybrid cloud; cloud and data platforms, up 17 percent (up 19 percent adjusting for currency); cognitive applications, up 4 percent (up 6 percent adjusting for currency); transaction processing platforms, down 5 percent (down 4 percent adjusting for currency).
  • Global Business Services (includes consulting, application management and global process services) — revenues of $4.1 billion, up 1.0 percent (up 2.2 percent adjusting for currency), led by growth in consulting, up 4 percent (up 5 percent adjusting for currency); gross profit margin increased 110 basis points.
  • Global Technology Services (includes infrastructure and cloud services and technology support services) — revenues of $6.7 billion, down 5.6 percent (down 4.1 percent adjusting for currency).
  • Systems (includes systems hardware and operating systems software) — revenues of $1.5 billion, down 14.7 percent (down 13.8 percent adjusting for currency), reflecting the end of the IBM z14 product cycle and shipping of the new IBM z15 in the last week of September; gross profit margin expansion in Power and Storage.
  • Global Financing (includes financing and used equipment sales) — revenues of $343 million, down 11.7 percent (down 10.7 percent adjusting for currency); revenue reflects the wind-down of OEM commercial financing; gross profit margin expansion.

Full-Year 2019 Expectations

On August 2, 2019, the company updated full-year expectations to reflect the impact of the Red Hat acquisition and related activities.  IBM expects GAAP diluted earnings per share for the full year to be at least $10.58.  The company continues to expect operating (non-GAAP) diluted earnings per share of at least $12.80.  Operating (non-GAAP) diluted earnings per share exclude $2.22 per share of charges for: amortization of purchased intangible assets and other acquisition-related charges, including pre-closing charges, such as financing costs, associated with the Red Hat acquisition; retirement-related charges; and tax reform enactment impacts.

IBM continues to expect free cash flow of approximately $12 billion, with a realization rate over 100 percent of GAAP Net Income.

Year-To-Date 2019 Results

Year-to-date results reflect the impact of items related to the Red Hat acquisition closed in July 2019.  Consolidated diluted earnings per share was $6.45 compared to $7.37, down 12 percent year to year.  Consolidated net income was $5.8 billion, down 15 percent year to year.  Revenues for the nine-month period ended September 30, 2019 totaled $55.4 billion, a decrease of 4 percent year to year (down 0.7 percent adjusting for divested businesses and currency) compared with $57.8 billion for the first nine months of 2018.

Operating (non-GAAP) diluted earnings per share from continuing operations was $8.10 compared with $8.96 per diluted share for the 2018 period, a decrease of 10 percent.  Operating (non-GAAP) net income for the nine months ended September 30, 2019 was $7.2 billion compared with $8.2 billion in the prior-year period, a decrease of 12 percent.


Source: IBM 

Subscribe to HPCwire's Weekly Update!

Be the most informed person in the room! Stay ahead of the tech trends with industy updates delivered to you every week!

At SC19: Bespoke Supercomputing for Climate and Weather

November 20, 2019

Weather and climate applications are some of the most important uses of HPC – a good model can save lives, as well as billions of dollars. But many weather and climate models struggle to run efficiently in their HPC en Read more…

By Oliver Peckham

Microsoft, Nvidia Launch Cloud HPC Service

November 20, 2019

Nvidia and Microsoft have joined forces to offer a cloud HPC capability based on the GPU vendor’s V100 Tensor Core chips linked via an InfiniBand network scaling up to 800 graphics processors. The partners announced Read more…

By George Leopold

Hazra Retiring from Intel Data Center Group, Successor Not Known

November 20, 2019

Rajeeb Hazra, corporate VP of Intel’s Data Center Group and GM for the Enterprise and Government Group, is retiring after more than 24 years at the company. At this writing, his successor is unknown. An earlier story on... Read more…

By Doug Black

Jensen Huang’s SC19 – Fast Cars, a Strong Arm, and Aiming for the Cloud(s)

November 20, 2019

We’ve come to expect Nvidia CEO Jensen Huang’s annual SC keynote to contain stunning graphics and lively bravado (with plenty of examples) in support of GPU-accelerated computing. In recent years, AI has joined the s Read more…

By John Russell

SC19 Student Cluster Competition: Know Your Teams

November 19, 2019

I’m typing this live from Denver, the location of the 2019 Student Cluster Competition… and, oh yeah, the annual SC conference too. The attendance this year should be north of 13,000 people, with the majority attende Read more…

By Dan Olds

AWS Solution Channel

Making High Performance Computing Affordable and Accessible for Small and Medium Businesses with HPC on AWS

High performance computing (HPC) brings a powerful set of tools to a broad range of industries, helping to drive innovation and boost revenue in finance, genomics, oil and gas extraction, and other fields. Read more…

IBM Accelerated Insights

Data Management – The Key to a Successful AI Project

 

Five characteristics of an awesome AI data infrastructure

[Attend the IBM LSF & HPC User Group Meeting at SC19 in Denver on November 19!]

AI is powered by data

While neural networks seem to get all the glory, data is the unsung hero of AI projects – data lies at the heart of everything from model training to tuning to selection to validation. Read more…

Top500: US Maintains Performance Lead; Arm Tops Green500

November 18, 2019

The 54th Top500, revealed today at SC19, is a familiar list: the U.S. Summit (ORNL) and Sierra (LLNL) machines, offering 148.6 and 94.6 petaflops respectively, remain in first and second place. The only new entrants in t Read more…

By Tiffany Trader

At SC19: Bespoke Supercomputing for Climate and Weather

November 20, 2019

Weather and climate applications are some of the most important uses of HPC – a good model can save lives, as well as billions of dollars. But many weather an Read more…

By Oliver Peckham

Hazra Retiring from Intel Data Center Group, Successor Not Known

November 20, 2019

Rajeeb Hazra, corporate VP of Intel’s Data Center Group and GM for the Enterprise and Government Group, is retiring after more than 24 years at the company. At this writing, his successor is unknown. An earlier story on... Read more…

By Doug Black

Jensen Huang’s SC19 – Fast Cars, a Strong Arm, and Aiming for the Cloud(s)

November 20, 2019

We’ve come to expect Nvidia CEO Jensen Huang’s annual SC keynote to contain stunning graphics and lively bravado (with plenty of examples) in support of GPU Read more…

By John Russell

Top500: US Maintains Performance Lead; Arm Tops Green500

November 18, 2019

The 54th Top500, revealed today at SC19, is a familiar list: the U.S. Summit (ORNL) and Sierra (LLNL) machines, offering 148.6 and 94.6 petaflops respectively, Read more…

By Tiffany Trader

ScaleMatrix and Nvidia Launch ‘Deploy Anywhere’ DGX HPC and AI in a Controlled Enclosure

November 18, 2019

HPC and AI in a phone booth: ScaleMatrix and Nvidia announced today at the SC19 conference in Denver a joint offering that puts up to 13 petaflops of Nvidia DGX Read more…

By Doug Black

Intel Debuts New GPU – Ponte Vecchio – and Outlines Aspirations for oneAPI

November 17, 2019

Intel today revealed a few more details about its forthcoming Xe line of GPUs – the top SKU is named Ponte Vecchio and will be used in Aurora, the first plann Read more…

By John Russell

SC19: Welcome to Denver

November 17, 2019

A significant swath of the HPC community has come to Denver for SC19, which began today (Sunday) with a rich technical program. As is customary, the ribbon cutt Read more…

By Tiffany Trader

SC19’s HPC Impact Showcase Chair: AI + HPC a ‘Speed Train’

November 16, 2019

This year’s chair of the HPC Impact Showcase at the SC19 conference in Denver is Lori Diachin, who has spent her career at the spearhead of HPC. Currently deputy director for the U.S. Department of Energy’s (DOE) Exascale Computing Project (ECP), Diachin is also... Read more…

By Doug Black

Supercomputer-Powered AI Tackles a Key Fusion Energy Challenge

August 7, 2019

Fusion energy is the Holy Grail of the energy world: low-radioactivity, low-waste, zero-carbon, high-output nuclear power that can run on hydrogen or lithium. T Read more…

By Oliver Peckham

Using AI to Solve One of the Most Prevailing Problems in CFD

October 17, 2019

How can artificial intelligence (AI) and high-performance computing (HPC) solve mesh generation, one of the most commonly referenced problems in computational engineering? A new study has set out to answer this question and create an industry-first AI-mesh application... Read more…

By James Sharpe

Cray Wins NNSA-Livermore ‘El Capitan’ Exascale Contract

August 13, 2019

Cray has won the bid to build the first exascale supercomputer for the National Nuclear Security Administration (NNSA) and Lawrence Livermore National Laborator Read more…

By Tiffany Trader

DARPA Looks to Propel Parallelism

September 4, 2019

As Moore’s law runs out of steam, new programming approaches are being pursued with the goal of greater hardware performance with less coding. The Defense Advanced Projects Research Agency is launching a new programming effort aimed at leveraging the benefits of massive distributed parallelism with less sweat. Read more…

By George Leopold

AMD Launches Epyc Rome, First 7nm CPU

August 8, 2019

From a gala event at the Palace of Fine Arts in San Francisco yesterday (Aug. 7), AMD launched its second-generation Epyc Rome x86 chips, based on its 7nm proce Read more…

By Tiffany Trader

D-Wave’s Path to 5000 Qubits; Google’s Quantum Supremacy Claim

September 24, 2019

On the heels of IBM’s quantum news last week come two more quantum items. D-Wave Systems today announced the name of its forthcoming 5000-qubit system, Advantage (yes the name choice isn’t serendipity), at its user conference being held this week in Newport, RI. Read more…

By John Russell

Ayar Labs to Demo Photonics Chiplet in FPGA Package at Hot Chips

August 19, 2019

Silicon startup Ayar Labs continues to gain momentum with its DARPA-backed optical chiplet technology that puts advanced electronics and optics on the same chip Read more…

By Tiffany Trader

Crystal Ball Gazing: IBM’s Vision for the Future of Computing

October 14, 2019

Dario Gil, IBM’s relatively new director of research, painted a intriguing portrait of the future of computing along with a rough idea of how IBM thinks we’ Read more…

By John Russell

Leading Solution Providers

ISC 2019 Virtual Booth Video Tour

CRAY
CRAY
DDN
DDN
DELL EMC
DELL EMC
GOOGLE
GOOGLE
ONE STOP SYSTEMS
ONE STOP SYSTEMS
PANASAS
PANASAS
VERNE GLOBAL
VERNE GLOBAL

Intel Confirms Retreat on Omni-Path

August 1, 2019

Intel Corp.’s plans to make a big splash in the network fabric market for linking HPC and other workloads has apparently belly-flopped. The chipmaker confirmed to us the outlines of an earlier report by the website CRN that it has jettisoned plans for a second-generation version of its Omni-Path interconnect... Read more…

By Staff report

Cray, Fujitsu Both Bringing Fujitsu A64FX-based Supercomputers to Market in 2020

November 12, 2019

The number of top-tier HPC systems makers has shrunk due to a steady march of M&A activity, but there is increased diversity and choice of processing compon Read more…

By Tiffany Trader

Kubernetes, Containers and HPC

September 19, 2019

Software containers and Kubernetes are important tools for building, deploying, running and managing modern enterprise applications at scale and delivering enterprise software faster and more reliably to the end user — while using resources more efficiently and reducing costs. Read more…

By Daniel Gruber, Burak Yenier and Wolfgang Gentzsch, UberCloud

Dell Ramps Up HPC Testing of AMD Rome Processors

October 21, 2019

Dell Technologies is wading deeper into the AMD-based systems market with a growing evaluation program for the latest Epyc (Rome) microprocessors from AMD. In a Read more…

By John Russell

Rise of NIH’s Biowulf Mirrors the Rise of Computational Biology

July 29, 2019

The story of NIH’s supercomputer Biowulf is fascinating, important, and in many ways representative of the transformation of life sciences and biomedical res Read more…

By John Russell

Xilinx vs. Intel: FPGA Market Leaders Launch Server Accelerator Cards

August 6, 2019

The two FPGA market leaders, Intel and Xilinx, both announced new accelerator cards this week designed to handle specialized, compute-intensive workloads and un Read more…

By Doug Black

When Dense Matrix Representations Beat Sparse

September 9, 2019

In our world filled with unintended consequences, it turns out that saving memory space to help deal with GPU limitations, knowing it introduces performance pen Read more…

By James Reinders

With the Help of HPC, Astronomers Prepare to Deflect a Real Asteroid

September 26, 2019

For years, NASA has been running simulations of asteroid impacts to understand the risks (and likelihoods) of asteroids colliding with Earth. Now, NASA and the European Space Agency (ESA) are preparing for the next, crucial step in planetary defense against asteroid impacts: physically deflecting a real asteroid. Read more…

By Oliver Peckham

  • arrow
  • Click Here for More Headlines
  • arrow
Do NOT follow this link or you will be banned from the site!
Share This