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TheStreet Open House

IBM Reports 2013 Second-Quarter Results

IBM (NYSE: IBM)

  • GAAP Results:
    • Diluted EPS: $2.91, down 13 percent;
    • Net income: $3.2 billion, down 17 percent;
    • Gross profit margin: 48.7 percent, up 1.0 points;
  • Operating (non-GAAP) Results , excluding workforce rebalancing charges (most indicative of operational trajectory):
    • Diluted EPS: $3.91, up 8 percent, excluding workforce rebalancing charges;
    • Net income: $4.3 billion, up 3 percent, excluding workforce rebalancing charges;
    • Gross profit margin: 49.7 percent, up 1.4 points;
  • 2013 full-year operating (non-GAAP) EPS expectations excluding $1 billion second-quarter workforce rebalancing charge: up $0.20 to at least $16.90;
  • Operating (non-GAAP) Results , including workforce rebalancing charges:
    • Diluted EPS: $3.22, down 8 percent; including workforce rebalancing charges;
    • Net income: $3.6 billion, down 12 percent; including workforce rebalancing charges;
    • Gross profit margin: 49.7 percent, up 1.4 points;
  • 2013 full-year “all in” operating (non-GAAP) EPS expectations, including $1 billion second-quarter workforce rebalancing charge: down $0.45 to at least $16.25, driven by reduction in anticipated second-half gains and $0.20 operating improvement;
  • Revenue: $24.9 billion, down 3 percent, down 1 percent adjusting for currency:
    • Software revenue up 4 percent, up 5 percent adjusting for currency;
      • Key branded middleware up 9 percent; up 10 percent adjusting for currency;
    • Services revenue down 4 percent, down 1 percent adjusting for currency;
      • Global Business Services revenue down 1 percent, up 2 percent adjusting for currency;
    • Services backlog of $141 billion, up 3 percent, up 7 percent adjusting for currency;
    • Systems and Technology revenue down 12 percent, down 11 percent adjusting for currency:
      • System z mainframe revenue up 10 percent; up 11 percent adjusting for currency;
    • Growth markets revenue flat, up 1 percent adjusting for currency;
    • Business analytics revenue up 11 percent;
    • Smarter Planet revenue up more than 25 percent in first half;
    • Cloud revenue up more than 70 percent in first half;

IBM (NYSE: IBM) today announced second-quarter 2013 diluted earnings of $2.91 per share, compared with diluted earnings of $3.34 per share in the second quarter of 2012, a decrease of 13 percent. Operating (non-GAAP) diluted earnings were $3.22 per share, including workforce rebalancing charges, compared with operating diluted earnings of $3.51 per share in the second quarter of 2012, a decrease of 8 percent. Operating (non-GAAP) diluted earnings per share were $3.91, an increase of 8 percent, excluding the impact of workforce rebalancing charges.

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