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Tag: James Kavanaugh

  • IBM Laying Off 3,900 Employees

    IBM Laying Off 3,900 Employees

    Big Blue is joining the list of tech companies laying off employees, announcing it would cut 3,900 jobs.

    Virtually all of IBM’s larger rivals in the tech space have engaged in layoffs, numbering in the tens of thousands in 2023 alone. According to Reuters, IBM is now adding to that number, with plans to lay off 3,900 employees.

    The news comes following the company’s quarterly report in which it fell short of its annual cash target.

    CFO James Kavanaugh told the outlet IBM was still “committed to hiring for client-facing research and development.”

    Despite the news, CEO Arvind Krishna put a positive spin on the company’s overall results.

    “Our solid fourth-quarter performance capped a year in which we grew revenue above our mid-single digit model. Clients in all geographies increasingly embraced our hybrid cloud and AI solutions as technology remains a differentiating force in today’s business environment,” said Krishna. “Looking ahead to 2023, we expect full-year revenue growth consistent with our mid-single digit model.”

  • IBM Beats Expectations On Strong Hybrid Cloud Results

    IBM Beats Expectations On Strong Hybrid Cloud Results

    IBM turned in its third-quarter results, beating expectation on strong hybrid cloud results.

    IBM has been focusing its attention on cloud computing, even planning to split in two in order to divest itself of its legacy business and focus its efforts on the cloud. The strategy is paying off, with the company reporting a strong third quarter.

    “IBM delivered strong revenue growth in the quarter, reflecting our continued focus on the execution of our strategy. Globally, clients view technology as an opportunity to enhance their business, which is evident in the results across our portfolio,” said Arvind Krishna, IBM chairman and chief executive officer. “With our year-to-date performance, we now expect full-year revenue growth above our mid-single digit model.”

    Revenue came in at $14.1 billion, up 6% over last year and beating expectations of $13.5 billion. Software revenue increased 7%, consulting revenue 5%, and infrastructure revenue was up 15%.

    Hybrid cloud revenue was up 15%, coming in at $22.2 billion over the last 12 months.

    “Both our revenue growth and operating profit profile for the first three quarters of the year align to the investment thesis we outlined last fall,” said James Kavanaugh, IBM senior vice president and chief financial officer. “Our portfolio mix, business fundamentals, strong recurring revenue stream and solid cash generation allow us to invest for continued growth and return value to shareholders through dividends.”

  • IBM’s Hybrid Cloud Strategy Pays Off in Latest Quarterly Results

    IBM’s Hybrid Cloud Strategy Pays Off in Latest Quarterly Results

    IBM has released its latest quarterly results, lending support to the company’s efforts to pivot to a hybrid cloud provider.

    IBM announced in 2020 it planned to split into two companies, spinning off its legacy hardware business, with the core company focusing on hybrid cloud solutions. The company has since been on a spending spree, buying up smaller companies to help round out its offerings.

    The company’s strategy appears to be paying off, if its latest quarterly results are any indication.

    “Demand for hybrid cloud and AI drove growth in both Software and Consulting in the first quarter. Today we’re a more focused business and our results reflect the execution of our strategy,” said Arvind Krishna, IBM chairman and chief executive officer. “We are off to a solid start for the year, and we now see revenue growth for 2022 at the high end of our model.”

    The company reported revenue of $14.2 billion, up 8%. Software revenue was up 12% and consulting revenue was up 13%, while infrastructure revenue was down 2%. Hybrid cloud revenue, however, was up 14%, coming in at $5 billion.

    “In the first quarter we continued to strengthen the fundamentals of our business, consistent with our medium-term model,” said James Kavanaugh, IBM senior vice president and chief financial officer. “We are a faster growing, more profitable company with a higher-value business mix, a significant recurring revenue base and strong cash generation.”

  • IBM Reports First Quarter Results, Beats Wall Street Expectations

    IBM Reports First Quarter Results, Beats Wall Street Expectations

    IBM has beat Wall Street expectations, returning to revenue growth after four quarters of declines.

    IBM has been in the process of reinventing itself as a hybrid cloud provider. The company plans to spin off its legacy operations, focusing primarily on its hybrid cloud business, and has been snapping up startups to help drives its transformation.

    The company’s strategy appears to be paying off as it reported revenue of $17.7 billion, up 1%. The company’s Cloud & Cognitive Software was up 4%. Cloud revenue accounted for $6.5 billion, up 21%. Over the past 12 months, cloud revenue accounted for $26.3 billion, an increase of 19%.

    “Strong performance this quarter in cloud, driven by increasing client adoption of our hybrid cloud platform, and growth in software and consulting enabled us to get off to a solid start for the year,” said Arvind Krishna, IBM chairman and chief executive officer. “While we have more work to do, we are confident we can achieve full-year revenue growth and meet our adjusted free cash flow target in 2021.”

    “In the first quarter we continued to improve the fundamentals of our business model,” said James Kavanaugh, IBM senior vice president and chief financial officer. “With strong cash generation and disciplined financial management, we increased investments in our hybrid cloud and AI capabilities, while significantly deleveraging in the quarter and supporting our commitment to a secure and growing dividend.”