IBM: Fiscal 1Q17 Financial Results

Storage revenue up Y/Y, for first time since 4FQ11 !
By Jean Jacques Maleval on 2017.04.19

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IBM Corp. announced 1FQ17 earnings results for the period ended March 31, 2017.

As usual, the company revealed only one figure for its storage business: +7% growth Y/Y.

This percentage were down each quarter since 4Q11 (see table blow), a dramatic trend, but IBM is finally coming back to a relatively small growth.

This change is led by double-digit growth in all-flash arrays. Flash contributed to storage revenue growth in both mid-range and high-end. In storage, Big Blue continues to see the shift in value towards software-defined environments. It again had double-digit revenue growth in this segment.

Storage software now represents more than 40% of total storage revenue. But storage gross margins were down, as hardware continues to be impacted by price pressure.

Last year we estimate IBM storage revenue at $447 million for 1Q16. Then +7% means $478 million for its most recent three-month period.

Revenue Growth of IBM Storage Products

Fiscal period
Y/Y growth
4Q11 -1%
1Q12 -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%
3Q16 -9%
4Q16 -10%
1Q17 7%