What are you looking for ?
Infinidat
Articles_top

IBM: Fiscal 2Q16 Financial Results

19th consecutive quarter with Y/Y decreasing hardware storage sales

IBM Corp. announced second-quarter 2016 earnings results for the period ended June 301, 2016.

For the second times, the company published one and only one figure for its storage business: -13% Y/Y decrease for hardware revenue during the quarter.

As 2Q15 sales were $630 million the result is a mere $548 million for 2Q16, to be compared to $447 million for the former quarter or +23%.

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 records 19 consecutive quarters with decreasing hardware storage sales.

Only official IBM’s comment on storage came from Patricia Murphy, VP of IBM investor relations: “Turning to storage. As we said in the past, storage value is shifting to software which is reported in our cognitive solutions segment. In storage software, we’re continuing to grow software-defined storage which includes object storage and our newly introduced Spectrum Suite offerings. Storage hardware revenue decreased 13% which continues to reflect weakness in the traditional disk storage market. We released the new all-flash DSAK storage offering during the second quarter, giving us competitive differentiation with plans to deliver all-flash offerings across the entire portfolio. Our systems gross profit and pretax income declined, reflecting the revenue performance. Our systems gross profit margin was flat, with margin improvements in both z Systems and POWER, offset by lower storage margins and the impact of mix.

Last July 11, storage veteran Ed Walsh was named GM for IBM storage and software-defined infrastructure, part of the company’s systems unit. He has no other choices: sell the business or acquire missing innovative storage technologies.

Revenue Growth of IBM Storage Products

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%
2Q16 -13%

 
To read the earnings call transcript

Articles_bottom
AIC
ATTO
OPEN-E