IBM today announced its third quarter 2012 results. The company reports the diluted earnings of $3.33 per share, a year-to-year increase of 4 percent, or $3.44 per share. Operating (non-GAAP) diluted earnings were $3.62 per share, compared with operating diluted earnings of $3.28 per share in the third quarter of 2011, an increase of 10 percent.
The company reported the net income of $3.8 billion, flat year-to-year; or $3.9 billion, up 3 percent excluding the impact of UK pension-related charges. Operating (non-GAAP) net income was $4.2 billion compared with $4.0 billion in the third quarter of 2011, an increase of 5 percent. Total revenues for the third quarter of 2012 of $24.7 billion were down 5 percent (down 2 percent, adjusting for currency) from the third quarter of 2011.
Quarter Highlights:
Diluted EPS:
- GAAP: $3.33, up 4 percent; $3.44, up 8 percent excluding UK pension-related charges;
- Operating (non-GAAP): $3.62, up 10 percent;
Net income:
- GAAP: $3.8 billion, flat; $3.9 billion, up 3 percent excluding UK pension-related charges;
- Operating (non-GAAP): $4.2 billion, up 5 percent;
Gross profit margin:
- GAAP: 47.4 percent, up 0.9 points;
- Operating (non-GAAP): 48.1 percent, up 1.2 points;
- Revenue: $24.7 billion, down 5 percent, down 2 percent adjusting for currency;
- Negative currency impact of nearly $1 billion;
- Divestiture of Retail Store Solutions (RSS) reduced revenue by 1 percent;
- Software revenue down 1 percent, up 3 percent adjusting for currency;
- Services revenue down 5 percent, flat adjusting for currency;
- Services backlog of $138 billion, up 1 percent;
- Systems and Technology revenue down 13 percent, down 12 percent adjusting for currency;
- Growth markets revenue down 1 percent, up 4 percent adjusting for currency;
- BRIC countries up 4 percent, up 11 percent adjusting for currency;
- Business analytics revenue up 14 percent year to date;
- Smarter Planet revenue up more than 20 percent year to date
- Cloud revenue year to date has exceeded full-year 2011 revenue;
- Reiterating full-year 2012 operating (non-GAAP) EPS expectation of at least $15.10.
