IBM: Fiscal 1Q17 Financial Results
Storage revenue up Y/Y, for first time since 4FQ11 !
By Jean Jacques Maleval | April 19, 2017 at 4:55 pmIBM 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% |
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