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Non-Tech : Kirk's Market Thoughts -- Ignore unavailable to you. Want to Upgrade?

To: Fintas who wrote (2087)	10/20/2014 11:03:55 AM
From: Kirk ©	Read Replies (5) \| Respond to of 26439

I wonder where the DOW would be today if they threw IBM out rather than HP last year..... IBM Earnings Announcement Mon, Oct 20, 2014, 11:03AM EDT - ARMONK, N.Y.--(BUSINESS WIRE)-- IBM (IBM): NOTE: Results from continuing operations exclude discontinued Microelectronics business, to be acquired by GLOBALFOUNDRIES as announced today. Diluted EPS from continuing operations: GAAP: $3.46, down 8 percent; Operating (non-GAAP): $3.68, down 10 percent; Net income from continuing operations: GAAP: $3.5 billion, down 17 percent; Operating (non-GAAP): $3.7 billion, down 18 percent; Consolidated results, including net loss on discontinued operations of $3.4 billion: Net income: $18 million EPS: $0.02 Gross profit margin from continuing operations: GAAP: 48.6 percent, down 40 basis points; Operating (non-GAAP): 49.2 percent, down 90 basis points; Revenue from continuing operations: $22.4 billion: Down 4 percent; down 2 percent adjusting for divested customer care outsourcing business and currency; Strategic imperatives grew double digits year-to-date: Cloud revenue up more than 50 percent year-to-date; For cloud delivered as a service, up 80 percent year-to-date with a third-quarter annual run rate of $3.1 billion; Business analytics revenue up 8 percent year-to-date; Mobile revenue more than doubled year-to-date; Security revenue up more than 20 percent year-to-date; Impact of customer care outsourcing, industry standard server and Microelectronics business divestitures, based on full-year 2013: Generated more than $7.0 billion of annual revenue; Incurred more than $0.5 billion in annual pre-tax losses. IBM (IBM) today announced third-quarter 2014 diluted earnings from continuing operations of $3.46 per share, compared with diluted earnings of $3.77 per share in the third-quarter of 2013, a decrease of 8 percent. Operating (non-GAAP) diluted earnings from continuing operations were $3.68 per share compared with operating diluted earnings of $4.08 per share in the third-quarter of 2013, a decrease of 10 percent. Third-quarter net income from continuing operations was $3.5 billion compared with $4.1 billion in the third-quarter of 2013, a decrease of 17 percent. Operating (non-GAAP) net income from continuing operations was $3.7 billion, as compared with $4.5 billion in the third-quarter of 2013, a decrease of 18 percent. For the third-quarter of 2014, IBM reported consolidated net income of $18 million or $0.02 of diluted earnings per share, which includes a net loss from discontinued operations of $3.4 billion, or $3.44 per diluted common share. Total revenues from continuing operations for the third-quarter of 2014 of $22.4 billion were down 4 percent (down 2 percent, adjusting for the impact of the divested customer care outsourcing business and for currency) from the third-quarter of 2013. “We are disappointed in our performance. We saw a marked slowdown in September in client buying behavior, and our results also point to the unprecedented pace of change in our industry. While we did not produce the results we expected to achieve, we again performed well in our strategic growth areas – cloud, data and analytics, security, social and mobile - where we continue to shift our business. We will accelerate this transformation,” said Ginni Rometty, IBM chairman, president and chief executive officer. “We are executing on a clear strategy that is moving IBM to higher value, and we've taken significant actions to exit nonstrategic elements of the business. This includes the announcement that we will divest semiconductor manufacturing to focus on research and development that will differentiate our systems. We will continue to make the investments and the changes necessary to manage our business for the long term. And we remain fully committed to returning significant value to shareholders through dividends and share repurchase." Discontinued Operations The company has reached an agreement under which GLOBALFOUNDRIES will acquire IBM’s Microelectronics OEM semiconductor business and manufacturing operations. The transaction with GLOBALFOUNDRIES is expected to close in 2015. The results from continuing operations exclude the Microelectronics business, which is presented separately as discontinued operations. The loss from discontinued operations in the third quarter includes a non-recurring pre-tax charge of $4.7 billion, or $3.3 billion, net of tax. The charge includes an impairment to reflect fair value less estimated costs to sell the Microelectronics business assets, which the company has classified as held for sale at September 30, 2014. The charge also includes other estimated costs related to the transaction, including cash consideration expected to be transferred to GLOBALFOUNDRIES of approximately $1.5 billion. The cash consideration is expected to be paid to GLOBALFOUNDRIES over the next three years and will be adjusted by the amount of the working capital due by GLOBALFOUNDRIES to IBM, estimated to be $0.2 billion. In addition, discontinued operations includes operational net losses from the Microelectronics business of $0.1 billion in both the third quarter of 2014 and the third quarter of 2013. Third-Quarter GAAP – Operating (non-GAAP) Reconciliation Third-quarter operating (non-GAAP) diluted earnings from continuing operations exclude $0.22 per share of charges; $0.16 per share for the amortization of purchased intangible assets and other acquisition-related charges; and $0.06 per share for retirement-related charges driven by changes to plan assets and liabilities primarily related to market performance. Earnings Guidance The company will provide earnings guidance during today’s quarterly earnings conference call, and it is included in the presentation charts.