IBM: Fiscal 1Q20 Financial Results

Global revenue of $17.6 billion is down 3.4% (up 0.1% adjusting for divested businesses and currency).

Storage systems revenue is up 18% Y/Y (up 19% adjusting for currency), a surprising record since at least 4FQ11 (see table below), increasing now 2 quarters in a row.

This percentage corresponds to quarterly sales of around $432 million according to our calculation, representing 2% of global sales.

IBM Z and storage growth were driven by product cycle and mission-critical workloads with gross margin expansion reflects mix benefit from innovations.

In high-end storage, which is integrated with mainframes, Big Blue had recorded an excellent quarter, especially in support of mission-critical banking workloads. This growth in Z and storage was partly offset by a decline in Power.

While the current environment is expected to impact closure rates, the company would expect less of an impact to Z and storage, given the essential nature of the purchases and the additional capacity requirements, especially in certain industries.

It decided to expanding its digital sales channel for both storage and Power business.

Revenue Growth of IBM Storage Systems

Earnings call transcript