Datadobi

IBM: Fiscal 1Q17 Financial Results

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

AddThis Social Bookmark Button

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%
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%
3Q16 -9%
4Q16 -10%
1Q17 7%
Articles_bottom