This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

IBM CEO Rometty: 'We Are Not Exiting Hardware'

With regard to transforming industries, the CEO noted IBM's business analytics revenue rose 9% in 2013, led by Global Business Services and Software. "This is already a nearly $16 billion business for us, and we have raised our expectations for it," she wrote. Just over a year ago, the tech giant increased its 2015 revenue target for analytics and big data to $20 billion from $16 billion.

Big data refers to the management of vast quantities of unstructured data, or information that is outside the realm of traditional databases. Examples include email messages, PowerPoint presentations, audio, video and social media information.

IBM Chart IBM data by YCharts

Addressing the opportunity in cloud, Rometty wrote that IBM's cloud business grew 69% in 2013, generating $4.4 billion in revenue. "As we actively embrace cloud in order to deliver 'IBM as a Service' to our clients, we expect to see significant benefits in client experience, revenue growth and enterprise productivity," she wrote.

Experts have already identified 2014 as a crucial 12 months in IBM's 103-year history. The company has kicked off the year with a slew of major announcements such as the Lenovo deal, billion-dollar investments in Watson supercomputer and cloud technology and plans to rebalance its workforce.

Must Read: Game of Thrones Fans Irate Over Quick Sellout of 'The Epic Fan Experience'

Jeffrey Sonnenfeld, senior associate dean for Executive Programs at The Yale School of Management and an expert on strategic leadership, applauded IBM's shifting focus. "It's a tremendous model of an iconic brand profoundly refreshing itself from stem to stern," he said, in a phone interview. "They now have the technology infused business tools that give them business service leverage that nobody else has."

(Sonnenfeld is a former member of TheStreet's Board)

As one of the tech sector's best-known dividend payers, IBM's cash position is always of interest to shareholders. The tech giant's free cash flow, crucially important for generating healthy dividends and share repurchases, was $15.02 billion in 2013, a decrease of $3.16 billion from the prior year. Nonetheless, IBM returned $17.92 billion to shareholders in 2013 - $13.86 billion in gross share repurchases and $4.06 billion in dividends.

IBM shares, which have fallen 7.51% in the last 12 months, closed up 0.02% at $187.68 during Friday trading.

--Written by James Rogers in New York.

>Contact by Email.

2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
IBM $146.45 1.50%
AAPL $93.21 -0.44%
FB $117.80 -0.22%
GOOG $701.26 0.80%
TSLA $211.34 -5.00%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,050.60 -0.52 -0.03%
NASDAQ 4,717.0940 -8.5450 -0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs