IBM: Fiscal 1Q16 Financial Results
6% Y/Y decrease for storage hardware revenue, fall continues inexorably.
By Jean Jacques Maleval | April 20, 2016 at 2:55 pmIBM Corp. announced first-quarter 2016 earnings results for the period ended March 31, 2016.
For the first time, the company published one and only one figure for its storage business: 6% Y/Y decrease for hardware revenue during the quarter.
As 1Q15 sales were $476 million the result is a mere $447 million for 1Q16 to be compared to $768 million for the former quarter or -42%.
Big Blue continues to be the worst giant in storage with Y/Y revenue decreasing each quarter since more than four years without interruption (see below). The company also records 16 consecutive quarters with decreasing global sales.
Only official IBM’s comment on storage: “(it) continues to reflect weakness in the overall storage market. We are well positioned to capture the strategic growth areas of flash, software-defined-storage and object storage – which together grew in the quarter.“
The acquisition of Cleversafe will help to add revenue as also probably the coming announcement, next April 27, of new flash systems pushed by the company to try to reverse a continuing catastrophic trend of its storage business.
Revenue Growth of IBM System Storage
| Fiscal period |
Y/Y Growth |
| 4Q11 | -1% |
| 1Q12 | -4% |
| 2Q12 |
-4% |
| 3Q12 | -10% |
| 4Q12 | -5% |
| 1Q13 | -11% |
| 2Q13 | -7% |
| 3Q13 | -11% |
| 4Q13 | -13% |
| 1Q14 | -23% |
| 2Q14 | -12% |
| 3Q14 | -6% |
| 4Q14 | -8% |
| 1Q15 | -4% |
| 2Q15 | -10% |
| 3Q15 | -19% |
| 4Q15 | -11% |
| 1Q16 | -6% |
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