Showing posts with label Financials. Show all posts
Showing posts with label Financials. Show all posts

Thursday, May 24, 2018

Nutanix posts revenue of $289.4 million, up 41%


Nutanix reported revenue of $289.4 million for its third quarter of fiscal 2018, ended April 30, 2018, up 41% year-over-year, and reflecting the elimination of approximately $52 million in pass-through hardware revenue in the quarter as the company executes its shift toward increasing software revenue.


GAAP gross margin was 67.0%, up from 59.5% in the third quarter of fiscal 2017.  GAAP net loss was $85.7 million, compared to a GAAP net loss of $96.8 million in the third quarter of fiscal 2017. Non-GAAP net loss amounted to $34.6 million, compared to a non-GAAP net loss of $45.7 million in the third quarter of fiscal 2017.

“Demand for our solutions remains strong as we saw 67 percent growth in software and support billings and 55 percent growth in software and support revenue. We had strong success in our hiring in the quarter that positions us to deliver on our future growth plans, as we outlined at our March Investor Day,” said Duston Williams, CFO of Nutanix. “The continued growth in our software and support billings and gross margin expansion in the quarter demonstrates we are successfully executing on our transition to a software-defined business model.”

Some highlights:


  • During the quarter, Nutanix grew software and support billings by 67 percent year-over-year, including three software and support deals worth more than $5 million each. Pass-through hardware billings decreased to 17 percent of total billings in the quarter, down from 25 percent in the year-ago quarter.
  • Improved AHV Penetration: Grew adoption of AHV, the company’s built-in hypervisor, to 33%, based on a four-quarter rolling average of nodes using AHV as a percentage of NX nodes sold.
  • Nutanix ended the third quarter of fiscal 2018 with 9,690 end-customers, adding 820 new end-customers during the quarter and growing deals greater than $1 million by 28 percent year-over-year.


Monday, May 21, 2018

Pure Storage hits quarterly revenue of $255.9 million, up 40% yoy

Pure Storage posted revenue of $255.9 million for its quarter ended April 30, 2018., up 40% yoy, exceeding the high end of previously issued guidance. The was a GAAP operating loss of $61.9 million, compared to a loss of $58.2 million in the same period a year ago.

"Pure has delivered another strong quarter as we lead the industry in delivering new data-centric architectures that enable enterprises to succeed both today and tomorrow," said Pure Storage CEO Charles Giancarlo. "The combination of our innovative business model, first-to-market technology innovations, and focus on customer success drove continued momentum in Q1."

Monday, May 14, 2018

Switch hits revenue of $98 million, up 10% yoy

Las Vegas-based, colocation provider Switch Inc, reported Q1 2018 revenue of $97.7 million, compared to $89.2 million for the same quarter in 2017, an increase of 10%. Net income was $4.0 million, compared to $20.3 million for the same quarter in 2017.  Net income in the first quarter of 2018 includes $12.4 million in equity-based compensation expense compared with $2.3 million in equity-based compensation expense in the same quarter of 2017.

"We are pleased with our progress in growing our ecosystem and positioning Switch as a partner of choice for global enterprises," said Thomas Morton, president and general counsel of Switch.  "Our highly differentiated and strategically located campus ecosystems continue to attract primary deployments, while our unique telecom capabilities enable hybrid cloud environments and hyperscale cloud deployments with AWS Direct Connect, Microsoft Express Route, and Google Cloud Interconnect."

Switch completed its IPO in October 2017.

Friday, May 11, 2018

Amdocs posts quarterly sales of $992M, up 2.7% yoy

Amdocs reported revenue for its second fiscal quarter ended March 31, 2018 of $992.3 million, up 1.5% or $14.6 million sequentially from the first fiscal quarter of 2018 and up 2.7% as compared to last year’s second fiscal quarter.  GAAP net income for the second quarter of fiscal 2018 was $101.7 million, or $0.70 per diluted share, compared to GAAP net income of $112.6 million, or $0.76 per diluted share, in the prior fiscal year’s second quarter. Net income on a non-GAAP basis was $137.4 million, or $0.95 per diluted share.

“We are pleased to report solid results for our second fiscal quarter which included double-digit growth in Europe and record revenue in Rest of World. Our operating profitability was stable and we grew our 12-month backlog to another new high. Additionally, we extended our technology leadership with the launch of AmdocsOne at Mobile World Congress and we utilized our cash to close on the acquisitions of Vubiquity, as well as UXP Systems, a leader in User Lifecycle Management solutions,” said Eli Gelman, president and chief executive officer of Amdocs Management Limited.

Amdocs announced a contract with Safaricom, a major mobile network operator in Kenya with 29.5 million customers. Safaricom will use revenue assurance technology and expertise from Amdocs to provide more comprehensive and adaptive revenue safeguards for the entire lifecycle of new services across its entire business.

Wednesday, May 9, 2018

CenturyLink sees rise in business, dip in consumer sales

CenturyLink reported revenues of $5.95 billion for first quarter 2018, compared to $4.21 billion for first quarter 2017. Diluted earnings per share was $0.11 for first quarter 2018, compared to diluted earnings per share of $0.30 for first quarter 2017.

"CenturyLink achieved solid results for first quarter 2018, the first full quarter of operations following the acquisition of Level 3," said Glen F. Post, III, CenturyLink chief executive officer. "Now positioned as one of the world's leading network providers, we believe we have significant opportunities to grow our business and drive long-term shareholder value," Post concluded.

"We are focused on our sales force integration and driving profitable revenue growth while improving our customer experience," said Jeff Storey, CenturyLink president and chief operating officer. "Our integration efforts to date are leading to the synergies we expected and helping us move toward sustainable improved profitability and cash flow generation."



Infinera posts Q1 revenue of $203 million

Infinera reported GAAP revenue for its first quarter ended March 31, 2018 of $202.7 million compared to $195.8 million in the fourth quarter of 2017 and $175.5 million in the first quarter of 2017.

GAAP gross margin for the quarter was 40.5% compared to 24.1% in the fourth quarter of 2017 and 36.5% in the first quarter of 2017. GAAP net loss for the quarter was $(26.3) million, or $(0.17) per share, compared to a net loss of $(40.5) million, or $(0.28) per share, in the first quarter of 2017. Non-GAAP net loss for the quarter was $(7.2) million, or $(0.05) per share, compared to a net loss of $(18.6) million, or $(0.12) per share, in the fourth quarter of 2017, and net loss of $(21.7) million, or $(0.15) per share, in the first quarter of 2017.

“Our financial performance in Q1 reflects continued strong growth from our next-generation products that offset typical seasonal weakness,” said Tom Fallon, Infinera’s Chief Executive Officer. “In 2018, we remain focused on winning new customers that will diversify our revenue base, drive multi-year growth and leverage our unique vertically-integrated operating model. We also remain committed to returning to profitability during the second half of 2018.”

Tuesday, May 8, 2018

NeoPhotonics posts revenue of $68.6 million, 100G and up now at 86% of sales

NeoPhotonics reported Q1 revenue of $68.6 million, down 4% year-over-year and 11% quarter-over-quarter. The gross margin was 13.4%, compared to 20.4% in the prior quarter. There was a GAAP net loss of $18.2 million, compared to a net loss of $14.3 million in the prior quarter. Non-GAAP net loss amounted to $14.6 million, compared to a net loss of $11.7 million in the prior quarter.

“Continuing our focus on 100G and above High Speed Products, which reached the highest proportion of revenue in our history at 86% in the quarter, we introduced and demonstrated new products for 400G and 600G coherent and datacenter applications. During the quarter we saw strength in metro and DCI deployments, driven by North America, and we have accelerating demand for these segments going into the remainder of the year,” said Tim Jenks, NeoPhotonics Chairman and CEO. “At the same time, while demand in China had stabilized, the recent regulatory and trade actions have introduced new uncertainty in that region, we continue to monitor and adjust plans accordingly.”

Twilio's cloud communications hits Q1 revenue of $129M, up 48% yoy

Twilio reported revenue of $129.1 million for the first quarter of 2018, up 48% from the first quarter of 2017 and 12% sequentially from the fourth quarter of 2017. AAP loss from operations of $24.3 million for the first quarter of 2018, compared with GAAP loss from operations of $14.8 million for the first quarter of 2017. Non-GAAP loss from operations of $4.7 million for the first quarter of 2018, compared with non-GAAP loss from operations of $3.7 million for the first quarter of 2017.

Twilio had 53,985 active customer accounts as of March 31, 2018, compared to 40,696 active customer accounts as of March 31, 2017.

"We are honored that a growing list of companies around the world are placing their trust in Twilio. Our first quarter results exhibited broad-based strength across multiple areas of our business, especially with continued expansion with existing customers,” said Jeff Lawson, Twilio’s Co-Founder and Chief Executive Officer. “Our continued devotion to innovation was highlighted by the launch of Twilio Flex - the first fully programmable cloud contact center application platform.”

With its acquired product lines, Extreme hits revenue of $262 million

Extreme Networks reported revenue of $262.0 million for its fiscal third quarter ended March 31, 2018. GAAP gross margin for the third fiscal quarter was 54.6%, a decrease of 90 basis points year-over-year, and non-GAAP gross margin was 57.9% year-over-year, an increase of 70 basis points year-over-year.  GAAP net loss for the third fiscal quarter was $13.6 million, or $0.12 per basic share, a decrease of $8.6 million and $0.07 per basic share, respectively, year-over-year. Non-GAAP net income was $19.0 million, or $0.16 per diluted share,

"We made significant progress continuing to build the 'new' Extreme in the third fiscal quarter with year-over-year revenue growth and non-GAAP gross margin improvement, hitting all of our critical milestones associated with the systems integration of our newly acquired assets," stated Ed Meyercord, President and CEO of Extreme Networks.

"We achieved organic growth of 8% in core Extreme revenue, driven by strength in our wireless business, and 10% sequential growth in our acquired Campus Fabric revenue. Given strong demand, we built our order backlog by over $7M during the quarter. We expect improvement in our gross margins in our last fiscal quarter of 2018 as we continue to approach our 60% target, in addition to significant sequential and year-over-year quarterly revenue growth."

Extreme's recent acquisitions include Avaya's networking business and Brocade Communications Systems' data center switching, routing, and analytics businesses.


Sunday, May 6, 2018

Alibaba's cloud revenue grew at 103% yoy pace in March quarter

Alibaba Group reported that its cloud division (Aliyun) generated revenue of RMB 4.385 billion (US$699 million) for its fiscal quarter ending 31-March-2018, representing 103% increase over the same period last year, and an 8% growth.

Aliyun currently represents 7% of Alibaba's overall revenue, which amounted to  RMB 61.932 billion (US$9.873 billion) for the quarter, an increase of 61% year-over-year.

The gross market value (GMV) transacted on Alibaba's China retail marketplaces for the full fiscal year ended 31-March-2018 was RMB 4,820 billion (US$768 billion), representing an accelerated year-over-year growth rate of 28% (compared to an annual growth rate of 22% in fiscal year 2017).

Some highlights of the Aliyun business

In the March 2018 quarter, Aliyun launched 316 new products and features, over 60 of which were
focused on artificial intelligence, data management and security.

Aliyun launched Link Edge, a proprietary edge computing software to enable the development of IoT applications in industries such as manufacturing, real estate and public facilities, such as airports and train stations.

Aliyun continues to expand its global footprint and customer base, most recently adding a new data
center in Indonesia, increasing the global footprint to 18 countries and regions worldwide.
Here are some selected large customers:

  • China National Petroleum Corporation, one of the largest petroleum companies in China, is building its procurement platform on Alibaba Cloud, leveraging private cloud, big data, and security products and services.
  • Malaysia Digital Economy Corporation is using the City Brain platform for traffic management in Malaysia’s capital city Kuala Lumpur. This platform leverages advanced technologies, including AI, big data analytics and computer vision to manage and optimize city traffic.
  • Cathay Pacific, a leading global airline headquartered in Hong Kong, adopted Alibaba's security and data protection consultancy services to protect its operations in China.

Tuesday, May 1, 2018

Juniper sees better than expected Q1 results despite declining routing and switching sales

Juniper Networks reported net revenues of $1,082.6 million for the first quarter of 2018, a decrease of 11% year-over-year and 13% sequentially. GAAP operating margin was 5.1%, a decrease from 12.8% in the first quarter of 2017, and a decrease from 16.4% in the fourth quarter of 2017. GAAP net income was $34.4 million, a decrease of 68% year-over-year, resulting in diluted net income per share of $0.10. Non-GAAP net income was $99.5 million, a decrease of 44% year-over-year and 50% sequentially, resulting in diluted earnings per share of $0.28.

“We hit the high-end of our guidance during the March quarter due to better than expected results from our cloud vertical and another quarter of growth in our enterprise business," said Rami Rahim, chief executive officer, Juniper Networks. "We are encouraged by the trends we are seeing in several areas of our business and remain confident in our expectation to deliver sequential growth through 2018 and a return to year-over-year growth by the December quarter."

Some highlights from the company's quarterly report:

  • Cloud revenues were up slightly sequentially and ahead of the company's expectations. 
  • The Service Provider vertical was challenged due to the timing of customer deployments, resulting in decreases both year-over-year and sequentially.
  • Enterprise increased 4% year-over-year due to strength from all technologies. 
  • Routing product revenue amounted to $408 million, down 22% year-over-year and down 20% sequentially. 
  • Switching product revenue amounted to $230 million, down 5% year-over-year and down 1% sequentially. 
  • Security product revenue was $73 million, up 11% year-over-year and down 17% sequentially. 
  • Service revenue was $372 million, down 5% year-over-year and down 9% sequentially. 
  • Of the top 10 customers for the quarter, four were Cloud, four were Service Provider, and two were Enterprise. Of these customers, four were located outside of the U.S.
  • Sales in the Americas amounted to $588 million, down 17% year-over-year and down 17% sequentially. 
  • Sales in EMEA amounted to $308 million, up 8% year-over-year and down 5% sequentially. 
  • Sales in APAC amounted to $187 million, down 17% year-over-year and down 11% sequentially

MACOM reports upturn in its most recent fiscal quarter

MACOM reported revenue of $150.4 million for its fiscal second quarter ended March 30, 2018, a decrease of 19.2% compared to $186.1 million in the previous year fiscal second quarter and an increase of 14.9% compared to $130.9 million in the prior fiscal quarter. Gross margin was 43.6%, compared to 37.0% in the previous year fiscal second quarter and 46.6% in the prior fiscal quarter. Net loss from continuing operations was $15.5 million, or $0.50 loss per diluted share, compared to net loss from continuing operations of $134.3 million, or $2.21 loss per diluted share, in the previous year fiscal second quarter and net loss from continuing operations of $17.0 million, or $0.49 loss per diluted share, in the prior fiscal quarter.

“The December quarter marked the bottom of the cycle for MACOM in terms of revenue and demand, as evidenced by our 15% sequential growth. Across our served markets, order intake and customer forecasts returned to more normalized patterns in our fiscal second quarter,” commented John Croteau, President and CEO of MACOM.

“Following last year’s cyclical downturn in China, we believe we are entering the next phase of global infrastructure spending driven by 5G Telecom, continued strong investment by Cloud Service Providers, and now, a surge in defense spending and industrial capital investment. We’ve spent the last couple of years developing a portfolio of disruptive products and technologies to service these targeted areas of secular growth. Major customers have validated our technology and capabilities and are actively sponsoring us as we work to ramp volume.”

American Tower reports robust demand as sales grow 7.8% yoy

American Tower reported revenue of $1.742 billion for Q1 2018, up 7.8% over last year.

“The strong demand we experienced in late 2017 for our telecommunications real estate further accelerated in the U.S. as well as in our Latin America and EMEA regions in the first quarter of 2018. Notably, record levels of new business commencements, along with a robust pipeline of applications for both amendments and new colocations resulted in our increase in expectations for full year U.S. Organic Tenant Billings Growth to approximately 6.5% in 2018," stated Jim Taiclet, American Tower’s Chief Executive Officer.

During Q1, American Tower spent approximately $673 million to acquire nearly 10,600 sites primarily in international markets, including approximately 10,200 sites in India as part of its previously announced transaction with Vodafone India Limited.

Monday, April 30, 2018

Akamai continued to grow at 11% annual clip in Q1

Akamai Technologies reported revenue was $669 million, an 11% increase over first quarter 2017 revenue of $600 million and a 9% increase when adjusted for foreign exchange. GAAP net income was $54 million, a 28% decrease from first quarter 2017. Non-GAAP net income* was $136 million, a 19% increase from first quarter 2017.


  • Web Division revenue was $353 million, up 16% year-over-year and up 13% when adjusted for foreign exchange.
  • Media and Carrier Division revenue was $316 million, up 6% year-over-year and up 4% when adjusted for foreign exchange
  • Cloud Security Solutions revenue was $149 million, up 36% year-over-year and up 32% when adjusted for foreign exchange
  • Revenue from Internet Platform Customers was $44 million, down 14% year-over-year and when adjusted for foreign exchange.

"We are very pleased with the results of our first quarter performance, which featured continued outstanding growth in our security business, substantial improvement in our media business, margin expansion and accelerated revenue growth overall," said Dr. Tom Leighton, Chief Executive Officer.



ZTE posted a Q1 growth rate of 12% prior to export ban on its suppliers

ZTE reported revenue of RMB 28.879 billion (US$5.548 billion) for the first quarter of 2018, up 12% over the same period in 2017. Net profit after extraordinary items attributable to holders of ordinary shares of the listed company amounted to RMB 1.368 billion (US$216 million).

The company said it is still assessing the impact of the export ban imposed on its U.S. suppliers by the U.S. Department of Commerce, stating that this action will have adverse effects.

The 2018 First Quarterly Report was prepared prior to the issuance of the export ban order, therefore ZTE said it was unable  "to ensure the truthfulness, accuracy and completeness of the contents of this report" in light of the order.


Thursday, April 26, 2018

Microsoft Azure grows 89% yoy in Q1

Microsoft reported Q1 revenue of $26.8 billion, up 16% yoy, operating income of $8.3 billion, up 23%; net income of $7.4 billion, up 35% yoy; and diluted earnings per share of $0.95, up 36%.

Cloud revenue was a major factor in the performance, with Azure growing 89% yoy in constant currency.

Some highlights

Revenue in Productivity and Business Processes was $9.0 billion and increased 17% (up 14% in constant currency)
  • Office commercial products and cloud services revenue increased 14% (up 12% in constant currency) driven by Office 365 commercial revenue growth of 42% (up 40% in constant currency)
  • Office consumer products and cloud services revenue increased 12% (up 9% in constant currency) and Office 365 consumer subscribers increased to 30.6 million
  • LinkedIn revenue increased 37% (up 33% in constant currency) with continued acceleration in engagement highlighted by LinkedIn sessions growth of over 30%
  • Dynamics products and cloud services revenue increased 17% (up 14% in constant currency) driven by Dynamics 365 revenue growth of 65% (up 62% in constant currency)
Revenue in Intelligent Cloud was $7.9 billion and increased 17% (up 15% in constant currency)
  • Server products and cloud services revenue increased 20% (up 17% in constant currency) driven by Azure revenue growth of 93% (up 89% in constant currency)
  • Enterprise Services revenue increased 8% (5% in constant currency)
Revenue in More Personal Computing was $9.9 billion and increased 13% (up 11% in constant currency)
  • Windows OEM revenue increased 4% (up 4% in constant currency) driven by OEM Pro revenue growth of 11%
  • Windows commercial products and cloud services revenue increased 21% (up 17% in constant currency) driven by an increased volume of multi-year agreements and the mix of products that carry higher in-quarter revenue recognition
  • Gaming revenue increased 18% (up 16% in constant currency) driven by Xbox software and services revenue growth of 24% (up 21% in constant currency) mainly from third party title strength
  • Surface revenue increased 32% (up 27% in constant currency) against a prior year comparable impacted by product end-of-life-cycle dynamics
  • Search advertising revenue excluding traffic acquisition costs increased 16% (up 14% in constant currency) driven by higher revenue per search and search volume

Digital Realty's Q1 revenue of $744 million, up 35% yoy

Digital Realty, a leading global provider of data center, colocation and interconnection solutions, reported revenues for the first quarter of 2018 of $744 million, a 2% increase from the previous quarter and a 35% increase from the same quarter last year. Net income amounted to $110 million, and net income available to common stockholders of $86 million, or $0.42 per diluted share, compared to $0.26 per diluted share in the previous quarter and $0.41 per diluted share in the same quarter last year.

"In the first quarter, we signed total bookings expected to generate $61 million of annualized GAAP rental revenue, including a $7 million contribution from interconnection," said Chief Executive Officer A. William Stein.  "As we look toward the remainder of 2018, we are confident in our ability to deliver sustainable growth for stakeholders, driven by broad-based demand across regions, verticals and product lines, along with growing local origination in key growth metros around the world."

Tuesday, April 24, 2018

Verizon cites positive momentum and higher earnings

Verizon added 260,000 net retail postpaid connections in Q1 2018, including 220,000 postpaid smartphone nets, along with 66,000 new Fios Internet connections, giving the company positive momentum as it entered the year. Verizon said it is on track to launch a 5G residential broadband service this year.

For first-quarter 2018, Verizon reported EPS of $1.11, compared with 84 cents in first-quarter 2017. On an adjusted basis (non-GAAP), first-quarter 2018 EPS was $1.17, compared with 95 cents in first-quarter 2017. Verizon’s first-quarter 2018 EPS included approximately 21 cents due to tax reform and accounting changes for revenue recognition.

“We began 2018 with strong momentum, and we expect it to continue throughout the year,” said Chairman and CEO Lowell McAdam. “We are positioning Verizon for long-term growth while executing our strategy today and leading the way for the next cycle of growth for the industry.”

Some highlights

Wireless results

  • Total revenues, excluding the impact of the revenue recognition standard, were $21.9 billion in first-quarter 2018, an increase of 4.7 percent compared with first-quarter 2017.
  • Service revenues for the quarter on a reported basis were down 2.4 percent. Excluding the impact from the revenue recognition standard, service revenues were flat. Service revenues improved year over year throughout the quarter, with results turning positive in the month of March when excluding the impact from the revenue recognition standard.
  • Verizon now has 81 percent of its postpaid phone base on unsubsidized plans, compared with 72 percent for the same period last year.
  • Verizon reported a net increase of 260,000 retail postpaid connections in first-quarter 2018, consisting of net phone losses of 24,000 and tablet losses of 75,000, offset by 359,000 other connected devices gains, primarily wearables. Postpaid smartphone net additions for the quarter were 220,000.
  • Total retail postpaid churn was 1.04 percent in first-quarter 2018, a year-over-year improvement. Retail postpaid phone churn of 0.80 percent was the fourth consecutive quarter of retail postpaid phone churn of 0.80 percent or better.


Wireline results

  • Total wireline revenues, excluding the impact of the revenue recognition standard, decreased 1.8 percent year over year in first-quarter 2018. Total Fios revenues, excluding the impact of the revenue recognition standard, grew 1.9 percent year over year, driven by growing demand for high-quality broadband service.
  • In first-quarter 2018, Verizon added a net of 66,000 Fios Internet connections and lost 22,000 Fios Video connections, indicative of the continued cord-cutting trend regarding traditional linear video bundles.


Sunday, April 22, 2018

Ericsson sees better financial performance after cost cutting

Amidst a stabilizing mobile infrastructure market with initial 5G development work in North America, Ericsson reported Q1 2018 sales of SEK 43.4 billion (US$5.134 billion), down by -9% YoY. Sales, adjusted for currency, decreased by -2% YoY with lower revenues in market areas North East Asia as well as in South East Asia, Oceania and India. The other market areas showed growth. There was an operating income loss of SEK -0.3 billion (US$35.4 million), which is an improvement from the loss of SEK -11.3 billion for the same period last year. Gross margin was 34.2% (15.7%) 1). Gross margin excluding restructuring charges improved YoY, to 35.9% (18.7%) 1), supported by cost reductions and the continued ramp-up of Ericsson Radio System (ERS).

In North America, Ericsson benefitted from the First Net project underway at AT&T. LTE deployments in mainland China diminished. Ericsson also reports increasing traction for 5G – radio, core & IoT. An additional 500 R&D engineers have been recruited to help with 5G.

As of the end of Q1, Ericsson had 97,581 employees, down from 109,127  in Q2 2017.

Börje Ekholm, President and CEO of Ericsson, stated: "Our efforts to improve efficiency in service delivery and common costs are starting to pay off. The gross margin improved to 36% (19%) in the quarter, tracking well towards our Group target of 37-39% by 2020. A cornerstone in our strategy is to invest in R&D for both technology leadership and cost leadership, which will allow us to generate higher gross margins. We continue to increase our R&D investments in Networks to lead in 5G. In Digital Services we continue to increase investments into our new cloud-native portfolio as well as changing our ways of working for better R&D efficiency. In Managed Services we continue to focus on machine intelligence, automation and analytics to further enhance user experience, improve efficiency and better manage the increasingly complex networks of tomorrow."

Tuesday, April 17, 2018

IBM posts flat Q1 revenues, annual cloud sales at $17.7 billion pace

IBM reported Q1 2018 revenue of $19.1 billion, up 5 percent (flat adjusting for currency). GAAP EPS from continuing operations was $1.81 and operating (non-GAAP) EPS was $2.45, up 4 percent.

"In the first quarter we maintained momentum in our business, with reported revenue growth in total and across our major segments," said Ginni Rometty, IBM chairman, president and chief executive officer. "These results reinforce that our clients value our innovative technologies, our industry expertise and our commitment and actions for the responsible stewardship of their privacy and data. This is also reflected in our leadership positions in enterprise cloud, AI and security."

Some highlights:

  • Strategic imperatives revenue over the last 12 months was $37.7 billion, up 12 percent (up 10 percent adjusting for currency). 
  • Total cloud revenue over the last 12 months was $17.7 billion, up 22 percent (up 20 percent adjusting for currency). 
  • The annual exit run rate for as-a-service revenue increased to $10.7 billion, up 25 percent (up 20 percent adjusting for currency). 
  • In the first quarter of 2018, revenues from analytics increased 9 percent (up 4 percent adjusting for currency); revenues from mobile increased 19 percent (up 14 percent adjusting for currency); and revenues from security increased 65 percent (up 60 percent adjusting for currency).

Segment Results for First Quarter

  • Cognitive Solutions (includes solutions software and transaction processing software) -- revenues of $4.3 billion, up 6 percent (up 2 percent adjusting for currency), driven by solutions software, including security, analytics, and industry platforms; and transaction processing software.
  • Global Business Services (includes consulting, global process services and application management) -- revenues of $4.2 billion, up 4 percent (down 1 percent adjusting for currency). Strategic imperatives revenue grew 12 percent led by the cloud consulting practice, with double-digit growth in analytics and mobile.
  • Technology Services & Cloud Platforms (includes infrastructure services, technical support services and integration software) -- revenues of $8.6 billion, up 5 percent (down 1 percent adjusting for currency). Strategic imperatives revenue grew 24 percent, driven by hybrid cloud services, security and mobile.
  • Systems (includes systems hardware and operating systems software) -- revenues of $1.5 billion, up 8 percent (up 4 percent adjusting for currency) driven by growth in IBM Z and Power.
  • Global Financing (includes financing and used equipment sales) -- revenues of $405 million, flat year to year (down 4 percent adjusting for currency).

Full-Year 2018 Expectatio

See also