Latest Share Chat

REMOVE ADS

Ibm Regulatory News (IBM)

Ibm Information

There is currently no data for IBM

REMOVE ADS

IBM Reports 2020 Second-Quarter Results

21 Jul 2020 07:00

IBM (NYSE: IBM) today announced second-quarter 2020 earnings results.

“Our clients see the value of IBM’s hybrid cloud platform, based on open technologies, at a time of unprecedented business disruption," said Arvind Krishna, IBM chief executive officer. "We are committed to building, with a growing ecosystem of partners, an enduring hybrid cloud platform that will serve as a powerful catalyst for innovation for our clients and the world.”

Highlights for the second quarter include:

GAAP EPS from continuing operations of $1.52Operating (non-GAAP) EPS of $2.18Revenue of $18.1 billion, down 5.4 percent (down 1.9 percent adjusting for divested businesses and currency)-- Cloud & Cognitive Software revenue up 3 percent (up 5 percent adjusting for currency)-- Systems revenue up 6 percentTotal cloud revenue of $6.3 billion, up 30 percent (up 34 percent adjusting for divested businesses and currency)-- Total cloud revenue of $23.5 billion over the last 12 months, up 20 percent (up 23 percent adjusting for divested businesses and currency)Red Hat revenue up 17 percent (up 18 percent adjusting for currency), normalized for historical comparabilityGAAP gross profit margin of 48 percent, up 100 basis points; Operating (non-GAAP) gross profit margin of 49 percent up 160 basis pointsNet cash from operating activities of $15.1 billion and free cash flow of $11.5 billion, over the last 12 months


	SECOND QUARTER 2020
	Results Reflect the Impact of Items Related to
	the Red Hat Acquisition Closed in July 2019
										Pre-tax		Gross
	Diluted			Net			Pre-tax			Income		Profit
	EPS			Income			Income			Margin		Margin
GAAP from Continuing Operations	$	1.52		$	1.4B		$	1.6B		8.7	%	48.0	%
Year/Year		(46)	%		(46)	%		(43)	%	(5.8)	Pts	1.0	Pts

Operating (Non-GAAP)	$	2.18		$	1.9B		$	2.3B		12.8	%	49.0	%
Year/Year		(31)	%		(31)	%		(27)	%	(3.8)	Pts	1.6	Pts

“Our prudent financial management in these turbulent times enabled us to expand our gross profit margin, generate strong free cash flow and improve our liquidity position," said James Kavanaugh, IBM senior vice president and chief financial officer. "We have the financial flexibility to continue to invest in our business and return value to our shareholders through our dividend policy.”

Cash Flow and Balance Sheet

In the second quarter, the company generated net cash from operating activities of $3.6 billion, or $3.0 billion excluding Global Financing receivables. IBM’s free cash flow was $2.3 billion. The company returned $1.5 billion to shareholders in dividends.

IBM ended the second quarter with $14.3 billion of cash on hand which includes marketable securities, up $5.2 billion from year-end 2019. Debt, including Global Financing debt of $21.9 billion, totaled $64.7 billion.

Segment Results for Second Quarter

Segment results reflect growing adoption of IBM's hybrid cloud platform while clients continue to shift priorities to preserve cash and maintain operational stability.

Cloud & Cognitive Software (includes Cloud & Data Platforms which includes Red Hat, Cognitive Applications and Transaction Processing Platforms) — revenues of $5.7 billion, up 3 percent (up 5 percent adjusting for currency), with growth in Cloud & Data Platforms, up 29 percent (up 30 percent adjusting for currency) led by Red Hat. Cognitive Applications and Transaction Processing Platforms declined. Cloud revenue more than doubled.Global Business Services (includes Consulting, Application Management and Global Process Services) — revenues of $3.9 billion, down 7 percent (down 6 percent adjusting for currency), driven by declines in Application Management and Consulting. Cloud revenue up 12 percent (up 13 percent adjusting for currency). Gross profit margin up 240 basis points.Global Technology Services (includes Infrastructure & Cloud Services and Technology Support Services) — revenues of $6.3 billion, down 8 percent (down 5 percent adjusting for currency). Cloud revenue up 18 percent (up 20 percent adjusting for currency).Systems (includes Systems Hardware and Operating Systems Software) — revenues of $1.9 billion, up 6 percent, led by IBM Z, up 69 percent (up 68 percent adjusting for currency). Storage Systems revenue up 2 percent (up 3 percent adjusting for currency); Power declined. Cloud revenue up 22 percent. Gross profit margin up 430 basis points.Global Financing (includes financing and used equipment sales) — revenues of $265 million, down 25 percent (down 23 percent adjusting for currency), reflecting the wind-down of OEM commercial financing. Gross profit margin up 360 basis points.

Year-To-Date 2020 Results

Consolidated diluted earnings per share was $2.83 compared to $4.58, down 38 percent year to year. Consolidated net income was $2.5 billion, down 38 percent year to year. Revenues for the six-month period ended June 30, 2020 totaled $35.7 billion, a decrease of 4 percent year to year (down 1 percent adjusting for divested businesses and currency) compared with $37.3 billion for the first six months of 2019.

Operating (non-GAAP) diluted earnings per share from continuing operations was $4.02 compared with $5.42 per diluted share for the 2019 period, a decrease of 26 percent. Operating (non-GAAP) net income for the six months ended June 30, 2020 was $3.6 billion compared with $4.8 billion in the prior-year period, a decrease of 26 percent.

Forward-Looking and Cautionary Statements

Except for the historical information and discussions contained herein, statements contained in this release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on the company’s current assumptions regarding future business and financial performance. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially, including, but not limited to, the following: a downturn in economic environment and client spending budgets; the company’s failure to meet growth and productivity objectives; a failure of the company’s innovation initiatives; damage to the company’s reputation; risks from investing in growth opportunities; failure of the company’s intellectual property portfolio to prevent competitive offerings and the failure of the company to obtain necessary licenses; cybersecurity and data privacy considerations; fluctuations in financial results; impact of local legal, economic, political, health and other conditions; adverse effects from environmental matters, tax matters and the company’s pension plans; ineffective internal controls; the company’s use of accounting estimates; impairment of the company’s goodwill or amortizable intangible assets; the company’s ability to attract and retain key employees and its reliance on critical skills; impacts of relationships with critical suppliers; product quality issues; impacts of business with government clients; currency fluctuations and customer financing risks; impact of changes in market liquidity conditions and customer credit risk on receivables; reliance on third party distribution channels and ecosystems; the company’s ability to successfully manage acquisitions, alliances and dispositions, including integration challenges, failure to achieve objectives, the assumption of liabilities, and higher debt levels; legal proceedings and investigatory risks; risk factors related to IBM securities; and other risks, uncertainties and factors discussed in the company’s Form 10‑Qs, Form 10‑K and in the company’s other filings with the U.S. Securities and Exchange Commission (SEC) or in materials incorporated therein by reference. Any forward-looking statement in this release speaks only as of the date on which it is made. Except as required by law, the company assumes no obligation to update or revise any forward-looking statements.

Presentation of Information in this Press Release

In an effort to provide investors with additional information regarding the company’s results as determined by generally accepted accounting principles (GAAP), the company has also disclosed in this press release the following non-GAAP information, which management believes provides useful information to investors:

IBM results —

adjusting for currency (i.e., at constant currency);total revenue and cloud revenue adjusting for divested businesses and currency;Red Hat revenue normalized for historical comparability;presenting operating (non-GAAP) earnings per share amounts and related income statement items;adjusting for free cash flow;net cash from operating activities, excluding Global Financing receivables.

The rationale for management’s use of these non-GAAP measures is included in Exhibit 99.2 in the Form 8‑K that includes this press release and is being submitted today to the SEC.

Conference Call and Webcast

IBM’s regular quarterly earnings conference call is scheduled to begin at 5:00 p.m. EDT, today. The Webcast may be accessed via a link at https://www.ibm.com/investor/events/ibm-2q-2020-earnings-announcement. Presentation charts will be available shortly before the Webcast.

Financial Results Below (certain amounts may not add due to use of rounded numbers; percentages presented are calculated from the underlying whole-dollar amounts).

INTERNATIONAL BUSINESS MACHINES CORPORATION COMPARATIVE FINANCIAL RESULTS (Unaudited; Dollars in millions except per share amounts)

	Three Months Ended							Six Months Ended
	June 30,							June 30,
	2020			2019				2020			2019
REVENUE
Cloud & Cognitive Software	$	5,748		$	5,563	*		$	10,987		$	10,530	*
Global Business Services		3,890			4,197	*			8,027			8,353	*
Global Technology Services		6,316			6,837				12,783			13,711
Systems		1,852			1,753				3,220			3,081
Global Financing		265			351				564			757
Other		50			460	*			113			911	*
TOTAL REVENUE		18,123			19,161				35,694			37,342

GROSS PROFIT		8,700			9,010				16,622			17,053

GROSS PROFIT MARGIN
Cloud & Cognitive Software		77.1	%		77.7	%	*		76.3	%		76.7	%	*
Global Business Services		28.4	%		26.0	%	*		27.8	%		26.1	%	*
Global Technology Services		34.2	%		34.4	%			34.1	%		34.1	%
Systems		57.8	%		53.5	%			54.6	%		50.3	%
Global Financing		38.6	%		35.0	%			39.7	%		34.9	%

TOTAL GROSS PROFIT MARGIN		48.0	%		47.0	%			46.6	%		45.7	%

EXPENSE AND OTHER INCOME
S,G&A		5,248			5,456				11,203			10,147
R,D&E		1,582			1,407				3,207			2,840
Intellectual property and custom development income		(203)			(222)				(319)			(323)
Other (income) and expense		179			(747)				361			(820)
Interest expense		323			348				649			558
TOTAL EXPENSE AND OTHER INCOME		7,129			6,242				15,101			12,402

INCOME FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES		1,571			2,768				1,522			4,651
Pre-tax margin		8.7	%		14.4	%			4.3	%		12.5	%
Provision for / (Benefit from) income taxes		209			269				(1,017)			558
Effective tax rate		13.3	%		9.7	%			(66.8)	%		12.0	%

INCOME FROM CONTINUING OPERATIONS	$	1,362		$	2,499			$	2,538		$	4,093
DISCONTINUED OPERATIONS
Income / (Loss) from discontinued operations, net of taxes		(1)			(1)				(2)			(4)

NET INCOME	$	1,361		$	2,498			$	2,536		$	4,089

EARNINGS / (LOSS) PER SHARE OF COMMON STOCK
Assuming Dilution
Continuing Operations	$	1.52		$	2.81			$	2.83		$	4.58
Discontinued Operations	$	0.00		$	0.00			$	0.00		$	0.00
TOTAL	$	1.52		$	2.81			$	2.83		$	4.58

Basic
Continuing Operations	$	1.53		$	2.82			$	2.85		$	4.61
Discontinued Operations	$	0.00		$	0.00			$	0.00		$	0.00
TOTAL	$	1.53		$	2.82			$	2.85		$	4.61

WEIGHTED-AVERAGE NUMBER OF COMMON SHARES OUTSTANDING (M’s)
Assuming Dilution		894.9			890.8				895.0			892.4
Basic		889.4			886.3				888.7			887.9

______________________________

* Recast to conform with 2020 presentation.

INTERNATIONAL BUSINESS MACHINES CORPORATION CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited)

	At		At
	June 30,		December 31,
(Dollars in Millions)	2020		2019
ASSETS:

Current Assets:
Cash and cash equivalents	$	12,041	$	8,172
Restricted cash		147		141
Marketable securities		2,063		696
Notes and accounts receivable - trade, net		6,543		7,870
Short-term financing receivables, net		11,967		14,192
Other accounts receivable, net		937		1,733
Inventories		1,869		1,619
Deferred costs		2,127		1,896
Prepaid expenses and other current assets		2,260		2,101
Total Current Assets		39,953		38,420

Property, plant and equipment, net		9,709		10,010
Operating right-of-use assets, net		4,774		4,996
Long-term financing receivables, net		7,351		8,712
Prepaid pension assets		7,254		6,865
Deferred costs		2,445		2,472
Deferred taxes		8,689		5,182
Goodwill		57,833		58,222
Intangibles, net		14,270		15,235
Investments and sundry assets		1,921		2,074
Total Assets	$	154,200	$	152,186

LIABILITIES:

Current Liabilities:
Taxes	$	2,627	$	2,839
Short-term debt		9,289		8,797
Accounts payable		4,719		4,896
Deferred income		12,469		12,026
Operating lease liabilities		1,343		1,380
Other liabilities		7,995		7,763
Total Current Liabilities		38,442		37,701

Long-term debt		55,449		54,102
Retirement related obligations		16,483		17,142
Deferred income		3,787		3,851
Operating lease liabilities		3,684		3,879
Other liabilities		15,666		14,526
Total Liabilities		133,512		131,202

EQUITY:

IBM Stockholders’ Equity:
Common stock		56,135		55,895
Retained earnings		162,559		162,954
Treasury stock — at cost		(169,386)		(169,413)
Accumulated other comprehensive income/(loss)		(28,757)		(28,597)
Total IBM Stockholders’ Equity		20,551		20,841

Noncontrolling interests		137		144
Total Equity		20,688		20,985

Total Liabilities and Equity	$	154,200	$	152,186

INTERNATIONAL BUSINESS MACHINES CORPORATION CASH FLOW ANALYSIS (Unaudited)

	Three Months Ended				Six Months Ended				Trailing Twelve Months
	June 30,				June 30,				Ended June 30,
(Dollars in Millions)	2020		2019		2020		2019		2020
Net Cash Provided by Operating Activities per GAAP:	$	3,576	$	2,941	$	8,052	$	7,700	$	15,122

Less: change in Global Financing (GF) Receivables		589		119		2,971		2,577		885
Capital Expenditures, Net		(697)		(431)		(1,434)		(1,045)		(2,759)

Free Cash Flow		2,290		2,391		3,647		4,078		11,477

Acquisitions		(6)		(42)		(19)		(43)		(32,607)
Divestitures		731		855		757		888		945
Dividends		(1,450)		(1,435)		(2,890)		(2,833)		(5,764)
Share Repurchase		—		(316)		—		(1,236)		(126)
Non-GF Debt		455		27,509		3,958		33,399		(6,649)
Other (includes GF Net Receivables and GF Debt)		213		(698)		(213)		(68)		564

Change in Cash, Cash Equivalents, Restricted Cash and Short-term Marketable Securities	$	2,233	$	28,264	$	5,241	$	34,186	$	(32,158)

INTERNATIONAL BUSINESS MACHINES CORPORATION CASH FLOW (Unaudited)

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(Dollars in Millions)	2020		2019		2020		2019
Net Income from Operations	$	1,361	$	2,498	$	2,536	$	4,089
Depreciation/Amortization of Intangibles		1,678		1,294		3,313		2,740
Stock-based Compensation		247		135		436		248
Working Capital / Other		(300)		(1,106)		(1,204)		(1,954)
Global Financing A/R		589		119		2,971		2,577
Net Cash Provided by Operating Activities	$	3,576	$	2,941	$	8,052	$	7,700
Capital Expenditures, net of payments & proceeds		(697)		(431)		(1,434)		(1,045)
Divestitures, net of cash transferred		731		855		757		888
Acquisitions, net of cash acquired		(6)		(42)		(19)		(43)
Marketable Securities / Other Investments, net		(1,264)		3,779		(1,442)		3,509
Net Cash Provided by / (Used in) Investing Activities	$	(1,236)	$	4,162	$	(2,138)	$	3,309
Debt, net of payments & proceeds		(38)		22,841		1,319		27,073
Dividends		(1,450)		(1,435)		(2,890)		(2,833)
Common Stock Repurchases		—		(316)		—		(1,236)
Common Stock Transactions – Other		(137)		(59)		(168)		(111)
Net Cash Provided by / (Used in) Financing Activities	$	(1,624)	$	21,031	$	(1,739)	$	22,894
Effect of Exchange Rate changes on Cash		101		129		(301)		27
Net Change in Cash, Cash Equivalents and Restricted Cash	$	817	$	28,263	$	3,874	$	33,930

INTERNATIONAL BUSINESS MACHINES CORPORATION SEGMENT DATA (Unaudited)

	Three Months Ended June 30, 2020
	Cloud &			Global			Global
	Cognitive			Business			Technology						Global
(Dollars in Millions)	Software			Services			Services			Systems			Financing
Revenue
External	$	5,748		$	3,890		$	6,316		$	1,852		$	265
Internal		743			55			304			240			241
Total Segment Revenue	$	6,491		$	3,945		$	6,621		$	2,092		$	506

Pre-tax Income / (Loss) from Continuing Operations		1,708			362			250			248			176

Pre-tax Margin		26.3	%		9.2	%		3.8	%		11.8	%		34.9	%

Change YTY Revenue – External		3.3	%		(7.3)	%		(7.6)	%		5.7	%		(24.5)	%
Change YTY Revenue - External @constant currency		4.6	%		(6.0)	%		(5.4)	%		6.3	%		(22.7)	%


	Three Months Ended June 30, 2019
	Cloud &			Global			Global
	Cognitive			Business			Technology						Global
(Dollars in Millions)	Software*			Services*			Services			Systems			Financing
Revenue
External	$	5,563		$	4,197		$	6,837		$	1,753		$	351
Internal		607			69			302			171			281
Total Segment Revenue	$	6,170		$	4,266		$	7,139		$	1,924		$	632

Pre-tax Income / (Loss) from Continuing Operations		2,007			290			235			61			239

Pre-tax Margin		32.5	%		6.8	%		3.3	%		3.2	%		37.8	%

______________________________

* Recast to conform with 2020 presentation.

INTERNATIONAL BUSINESS MACHINES CORPORATION SEGMENT DATA (Unaudited)

	Six Months Ended June 30, 2020
	Cloud &			Global			Global
	Cognitive			Business			Technology						Global
(Dollars in Millions)	Software			Services			Services			Systems			Financing
Revenue
External	$	10,987		$	8,027		$	12,783		$	3,220		$	564
Internal		1,556			101			599			388			453
Total Segment Revenue	$	12,543		$	8,128		$	13,382		$	3,608		$	1,017

Pre-tax Income / (Loss) from Continuing Operations		2,641			633			72			31			370

Pre-tax Margin		21.1	%		7.8	%		0.5	%		0.9	%		36.4	%

Change YTY Revenue – External		4.3	%		(3.9)	%		(6.8)	%		4.5	%		(25.4)	%
Change YTY Revenue - External @constant currency		5.6	%		(2.6)	%		(4.7)	%		5.4	%		(23.9)	%


	Six Months Ended June 30, 2019
	Cloud &			Global			Global
	Cognitive			Business			Technology						Global
(Dollars in Millions)	Software*			Services*			Services			Systems			Financing
Revenue
External	$	10,530		$	8,353		$	13,711		$	3,081		$	757
Internal		1,448			143			591			334			581
Total Segment Revenue	$	11,978		$	8,495		$	14,303		$	3,415		$	1,338

Pre-tax Income / (Loss) from Continuing Operations		3,792			587			510			(141)			527

Pre-tax Margin		31.7	%		6.9	%		3.6	%		(4.1)	%		39.4	%

______________________________

* Recast to conform with 2020 presentation.

INTERNATIONAL BUSINESS MACHINES CORPORATION U.S. GAAP TO OPERATING (Non-GAAP) RESULTS RECONCILIATION (Unaudited; Dollars in millions except per share amounts)

	Three Months Ended June 30, 2020
	Continuing Operations
				Acquisition-			Retirement-			Tax
				Related			Related			Reform		Operating
	GAAP			Adjustments*			Adjustments**			Impacts		(Non-GAAP)
Gross Profit	$	8,700		$	187		$	—		$	—	$	8,887

Gross Profit Margin		48.0	%		1.0	Pts		—			—		49.0	%

S,G&A		5,248			(285)			—			—		4,962

R,D&E		1,582			—			—			—		1,582

Other (Income) & Expense		179			(1)			(273)			—		(95)

Interest Expense		323			—			—			—		323

Total Expense & Other (Income)		7,129			(286)			(273)			—		6,570

Pre-tax Income from Continuing Operations		1,571			473			273			—		2,318

Pre-tax Income Margin from Continuing Operations		8.7	%		2.6	Pts		1.5	Pts		—		12.8	%

Provision for / (Benefit from) Income Taxes***		209			108			52			—		369

Effective Tax Rate		13.3	%		1.9	Pts		0.7	Pts		—		15.9	%

Income from Continuing Operations		1,362			365			222			—		1,949

Income Margin from Continuing Operations		7.5	%		2.0	Pts		1.2	Pts		—		10.8	%

Diluted Earnings / (Loss) Per Share: Continuing Operations	$	1.52		$	0.41		$	0.25		$	—	$	2.18


	Three Months Ended June 30, 2019
	Continuing Operations
				Acquisition-			Retirement-			Tax
				Related			Related			Reform			Operating
	GAAP			Adjustments*			Adjustments**			Impacts			(Non-GAAP)
Gross Profit	$	9,010		$	73		$	—		$	—		$	9,083

Gross Profit Margin		47.0	%		0.4	Pts		—			—			47.4	%

S,G&A		5,456			(149)			—			—			5,307

R,D&E		1,407			—			—			—			1,407

Other (Income) & Expense		(747)			119			(136)			—			(764)

Interest Expense		348			(168)			—			—			180

Total Expense & Other (Income)		6,242			(198)			(136)			—			5,907

Pre-tax Income from Continuing Operations		2,768			272			136			—			3,176

Pre-tax Income Margin from Continuing Operations		14.4	%		1.4	Pts		0.7	Pts		—			16.6	%

Provision for / (Benefit from) Income Taxes***		269			55			40			(14)			349

Effective Tax Rate		9.7	%		0.9	Pts		0.8	Pts		(0.4)	Pts		11.0	%

Income from Continuing Operations		2,499			217			97			14			2,827

Income Margin from Continuing Operations		13.0	%		1.1	Pts		0.5	Pts		0.1	Pts		14.8	%

Diluted Earnings / (Loss) Per Share: Continuing Operations	$	2.81		$	0.24		$	0.11		$	0.01		$	3.17

______________________________
*	Includes amortization of purchased intangible assets, in process R&D, transaction costs, applicable restructuring and related expenses, tax charges related to acquisition integration and pre-closing charges, such as financing costs.
**	Includes amortization of prior service costs, interest cost, expected return on plan assets, amortized actuarial gains/losses, the impacts of any plan curtailments/settlements and pension insolvency costs and other costs.
*******	Tax impact on operating (non-GAAP) pre-tax income from continuing operations is calculated under the same accounting principles applied to the As Reported pre-tax income under ASC 740, which employs an annual effective tax rate method to the results.

INTERNATIONAL BUSINESS MACHINES CORPORATION U.S. GAAP TO OPERATING (Non-GAAP) RESULTS RECONCILIATION (Unaudited; Dollars in millions except per share amounts)

	Six Months Ended June 30, 2020
	Continuing Operations
				Acquisition-			Retirement-			Tax
				Related			Related			Reform			Operating
	GAAP			Adjustments*			Adjustments**			Impacts			(Non-GAAP)
Gross Profit	$	16,622		$	375		$	—		$	—		$	16,998

Gross Profit Margin		46.6	%		1.1	Pts		—			—			47.6	%

S,G&A		11,203			(570)			—			—			10,633

R,D&E		3,207			—			—			—			3,207

Other (Income) & Expense		361			(1)			(538)			—			(178)

Interest Expense		649			—			—			—			649

Total Expense & Other (Income)		15,101			(571)			(538)			—			13,992

Pre-tax Income from Continuing Operations		1,522			946			538			—			3,006

Pre-tax Income Margin from Continuing Operations		4.3	%		2.7	Pts		1.5	Pts		—			8.4	%

Provision for / (Benefit from) Income Taxes***		(1,017)			210			65			149			(592)

Effective Tax Rate		(66.8)	%		28.0	Pts		14.1	Pts		5.0	Pts		(19.7)	%

Income from Continuing Operations		2,538			736			472			(149)			3,598

Income Margin from Continuing Operations		7.1	%		2.1	Pts		1.3	Pts		(0.4)	Pts		10.1	%

Diluted Earnings / (Loss) Per Share: Continuing Operations	$	2.83		$	0.83		$	0.53		$	(0.17)		$	4.02


	Six Months Ended June 30, 2019
	Continuing Operations
				Acquisition-			Retirement-			Tax
				Related			Related			Reform			Operating
	GAAP			Adjustments*			Adjustments**			Impacts			(Non-GAAP)
Gross Profit	$	17,053		$	149		$	—		$	—		$	17,202

Gross Profit Margin		45.7	%		0.4	Pts		—			—			46.1	%

S,G&A		10,147			(273)			—			—			9,873

R,D&E		2,840			—			—			—			2,840

Other (Income) & Expense		(820)			142			(274)			—			(951)

Interest Expense		558			(204)			—			—			354

Total Expense & Other (Income)		12,402			(335)			(274)			—			11,793

Pre-tax Income from Continuing Operations		4,651			484			274			—			5,409

Pre-tax Income Margin from Continuing Operations		12.5	%		1.3	Pts		0.7	Pts		—			14.5	%

Provision for / (Benefit from) Income Taxes***		558			104			66			(155)			574

Effective Tax Rate		12.0	%		0.8	Pts		0.6	Pts		(2.9)	Pts		10.6	%

Income from Continuing Operations		4,093			381			208			155			4,836

Income Margin from Continuing Operations		11.0	%		1.0	Pts		0.6	Pts		0.4	Pts		13.0	%

Diluted Earnings / (Loss) Per Share: Continuing Operations	$	4.58		$	0.44		$	0.23		$	0.17		$	5.42

______________________________
*	Includes amortization of purchased intangible assets, in process R&D, transaction costs, applicable restructuring and related expenses, tax charges related to acquisition integration and pre-closing charges, such as financing costs.
**	Includes amortization of prior service costs, interest cost, expected return on plan assets, amortized actuarial gains/losses, the impacts of any plan curtailments/settlements and pension insolvency costs and other costs.
*******	Tax impact on operating (non-GAAP) pre-tax income from continuing operations is calculated under the same accounting principles applied to the As Reported pre-tax income under ASC 740, which employs an annual effective tax rate method to the results.

INTERNATIONAL BUSINESS MACHINES CORPORATION U.S. GAAP TO OPERATING (Non-GAAP) RESULTS RECONCILIATION (Unaudited; Dollars in millions except per share amounts)
										Trailing
	Three Months Ended						Six Months Ended			Twelve Months Ended
	June 30, 2020						June 30, 2020			June 30, 2020
	Change YTY						Change YTY			Change YTY
Revenue Adjusting for Divested Businesses and Currency	Cloud			Total IBM			Total IBM			Cloud

Revenue as reported		30.1	%		(5.4)	%		(4.4)	%		20.2	%
Impact from divested businesses		2.4	Pts		2.0	Pts		2.0	Pts		1.8	Pts
Currency impact		1.8	Pts		1.6	Pts		1.6	Pts		1.3	Pts
Revenue adjusting for divested businesses and currency (non-GAAP)		34.3	%		(1.9)	%		(0.9)	%		23.4	%


	Three Months Ended				Change
Red Hat Revenue, Normalized for Historical Comparability	June 30, 2020		June 30, 2019		YTY		YTY @constant currency

Red Hat revenue as reported in IBM consolidated results (1)	$	867	$	—
Add: Red Hat revenue prior to acquisition (2)		—		936
Add: Purchase accounting deferred revenue and intercompany adjustments (3)		227		—
Red Hat revenue, normalized for historical comparability (non-GAAP)	$	1,094	$	936	17	%	18	%

(1) Represents GAAP revenue as reported by IBM, which is included in the Cloud & Cognitive Software segment.(2) Revenue for the three months ended June 30, 2019 represents pre-acquisition Red Hat standalone revenue and is included for comparative purposes.(3) Represents the second-quarter 2020 impact of the deferred revenue purchase accounting adjustment and adjustments to add back revenue which was eliminated for sales between Red Hat and IBM. This line represents revenue that would have been recognized by Red Hat under GAAP if the acquisition had not occurred, but was not recognized by IBM due to purchase accounting and intercompany adjustments.

View source version on businesswire.com: https://www.businesswire.com/news/home/20200720005769/en/

Date		Source	Headline
31st Oct 2024	7:00 am	PRN	Doc re Form: 10-Q
25th Oct 2024	7:00 am	PRN	Doc re Form 8-K
25th Oct 2024	7:00 am	PRN	Doc re Form 8-K
24th Oct 2024	7:00 am	PRN	IBM RELEASES THIRD-QUARTER RESULTS
4th Oct 2024	7:59 am	PRN	Intention to Delist From the London Stock Exchange
12th Sep 2024	7:00 am	PRN	Doc re: Form 8-K
7th Aug 2024	2:36 pm	GNW	Invesco Ltd: Form 8.3 - International Paper Company Public dealing disclosure
31st Jul 2024	7:00 am	PRN	Doc re: Form 10-Q
26th Jul 2024	7:00 am	PRN	Doc re: Form 8-K
25th Jul 2024	7:00 am	PRN	Half-Yearly Report
25th Jul 2024	7:00 am	PRN	Doc re: Form 8-K
24th Jun 2024	7:00 am	PRN	Doc re: Form 8-K
7th May 2024	7:00 am	PRN	Doc re: Form 8-K
1st May 2024	7:00 am	PRN	Doc re Form 10-Q
26th Apr 2024	7:00 am	PRN	Doc re: Form 8-K
25th Apr 2024	7:00 am	PRN	1st Quarter Results
25th Apr 2024	7:00 am	PRN	Doc re Form 8-K
8th Apr 2024	7:00 am	PRN	Doc re: Form DEF A14A
19th Mar 2024	7:00 am	PRN	Doc re: Form 8-K
12th Mar 2024	1:04 pm	PRN	Doc re (Form DEFA14A)
12th Mar 2024	1:02 pm	PRN	Doc re (Form Def 14A)
12th Mar 2024	12:52 pm	PRN	IBM Annual Report
27th Feb 2024	7:00 am	PRN	Doc re: Form 8-K
27th Feb 2024	7:00 am	PRN	Doc re: Form 10-K
5th Feb 2024	7:00 am	PRN	Doc re: Form 8-K
2nd Feb 2024	7:00 am	PRN	Doc re: Form 8-K
26th Jan 2024	7:00 am	PRN	Doc re: Form 8-K
25th Jan 2024	7:00 am	PRN	Form 8-K
25th Jan 2024	7:00 am	PRN	Final Results
13th Dec 2023	7:00 am	PRN	Doc re Form 8K
31st Oct 2023	6:12 pm	PRN	Doc re Form 10-Q
27th Oct 2023	7:00 am	PRN	Doc re Form 8-K
26th Oct 2023	7:00 am	PRN	Doc re: Form 8-K
26th Oct 2023	7:00 am	PRN	3rd Quarter Results
1st Aug 2023	7:00 am	PRN	Doc re: Form 8-K
26th Jul 2023	7:00 am	PRN	Doc re: Form 10-Q
21st Jul 2023	7:00 am	PRN	Doc re Form 8-K
20th Jul 2023	7:00 am	PRN	IBM Releases Second-Quarter Results
20th Jul 2023	7:00 am	PRN	Doc re Form 8K
11th Apr 2022	7:00 am	PRN	Doc re: Form DEFA 14A
1st Apr 2022	7:00 am	PRN	Doc re: Form 8-K
8th Mar 2022	12:22 pm	PRN	Annual Financial Report
8th Mar 2022	7:00 am	PRN	Doc re Form DEFA 14A
8th Mar 2022	7:00 am	PRN	Doc re Form DEF 14A
23rd Feb 2022	7:00 am	PRN	Doc re Form 10-K
9th Feb 2022	7:00 am	PRN	Doc re Form 8-K
7th Feb 2022	7:00 am	PRN	Doc re: Form 8-K
1st Feb 2022	3:36 pm	PRN	Dividend Declaration
26th Jan 2022	7:00 am	PRN	Doc re: Form 8-K
25th Jan 2022	7:00 am	PRN	Final Results

Latest Share Chat

Ibm Regulatory News (IBM)

IBM Reports 2020 Second-Quarter Results

Please enter at least 2 characters

No results found

Search results

Recently viewed

Trending