what are peoples thought's - more financial engineering?
I reckon a drop again - no growth
14 replies (most recent on top)
Power and storage are now the millstone around systems neck. Both are not growing, and IBM can’t afford to keep throwing money at shrinking revenue. IBM will have to get quite creative to get rid of each as both have reached the replacement part of their individual development cycles. (How many customers are out there demanding “give me P10 ASAP as P9 isn’t cutting it” NOT MANY) The problem IBM is running into is they can’t find a viable buyer. As such IBM in addition to giving a price concession, will have to throw in lucrative terms. My guess is a 10 year jo––t agreement to share their research via the IBM labs.
Time to sell power and storage
Useless garbage
Storage (14%)
My little corner of storage was up, so I hate to think what everybody else did.
Also, how is Power still a thing? Are they going to ride it all the way to the ground like the b––b in Dr. Strangelove?
Looks like the mainframe – z15 – saved the day again... Otherwise growth would have been negative... it is most likely the last quarter for Z15 to shine... so expect Q2 to be down for the revenue number.
Short it, shorty
If you work in storage, time to start looking. When discussing Systems on the call, it was all about Z, and how wonderful it is – storage only mentioned once, and Power twice!
Systems:
IBM Z 49%
Power (13%)
Storage (14%)
Operating Systems Software (18%)
Consistent decline in Power and Storage
They spent 20% of their cash in Q1. Cash to debt ratio increasing, even though they paid down some debt. Rising interest rates will be a big problem for them before they can pay it off.
Cloud and Red Hat up as expected but canceled by all the other declining business.
EPS slightly down YoY.
Revenue slightly down YoY.
Inflation means overall loss YoY.
Spin–out not finished til end of year.
Cloud revenue and profits up by 30%, and investment in cloud infrastructure increasing proportionally.
Oh wait – I thought you were asking about the competition.
Revenue down 500M from last year.
IBM spent 3-3.5 billion on restructuring last year. That’s approx 5% of total revenue thrown toward expense reduction. Given the yearly revenue shrink of around 5%, we should expect something close to last years numbers revenue and earnings wise. If we see a decline from last year, that says management has failed to address IBM’s underlying issues and they should be held accountable. It’s been over a year since AK took over. It’s time for some results, as he is out of runway for excuses. The compare should be quasi easy for IBM, as they were going into Covid for 2 out of the three months last year. AK lead or pass the baton. Excuses just don’t cut it
Another round of financial engineering and continued layoffs. Take it to the bank!!!
I hope to see any strategy that makes sense, other than buzz words all over the slides
I'm assuming the usual, revenue down overall, but up in key areas after revenue has been moved around the units to prove the recovery is working.