Wednesday, January 21, 2015

IBM Revenue Slides as Revamping Takes Hold -

IBM in transition -- again...

"In the conference call and in an interview afterward, Martin Schroeter, IBM’s chief financial officer, made the case that IBM was showing encouraging progress in its transition. The new businesses the company has earmarked for growth — data analytics, cloud, security and mobile apps for corporations — grew at a 16 percent rate in 2014 and contributed $25 billion in revenue, or 27 percent of the company’s total sales. These growth businesses, he said, should continue to expand at a double-digit rate.

[...] But analysts question how well IBM is doing in achieving its objectives. IBM’s reported numbers for its so-called strategic growth businesses, according to estimates by A. M. Sacconaghi, an analyst at Bernstein Research, suggest that revenue for the rest of IBM declined by 8 percent last year. “The fact is the core is not stable,” Mr. Sacconaghi said. “The jury is still out on IBM.”"
IBM Revenue Slides as Revamping Takes Hold -

No comments: