IBM: Fiscal 2Q20 Financial Results
Storage systems revenue up 2% vs. 18% in former quarter, thanks to mainframes
By Jean Jacques Maleval | July 22, 2020 at 2:20 pmIBM reports quarterly global revenue of $18.1 billion, down 5.4%, and improves gross margins in 2FQ20 under new CEO Arvind Krishna, 58, since last April 6, succeeding Ginni Rometty.
Sales of systems (including systems hardware and OSs software) was $1.9 billion, up 6%, led by IBM Z, up 69%.
Storage systems – without storage software and cloud storage – revenue were up 2% (up 3% adjusting for currency), .
It’s the third consecutive quarter with increased storage systems storage revenue (3%, surprising record 18%, and 2% respectively), up after 5 ones down, but, as usual, no precise figures were revealed.
The last two 3-month periods benefit essentially from the announcement of new IBM Z mainframe. When Big Blue announces this king of high-end computer, immediately some loyal customers jump on it, and also consequently on high-end storage systems behind it.
Also gross margin expansion benefits from IBM Z and storage product cycle.
Nevertheless, these recent good results will probably not continue next quarters and prove the decrease of all other IBM’s storage systems not in relation with mainframes.
Revenue Growth of IBM Storage Systems
| 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% |
| 2Q17 | 8% |
| 3Q17 | 4% |
| 4Q17 | 8% |
| 1Q18 | -15% |
| 2Q18 |
2% |
| 3Q18 | -6% |
| 4Q18 |
-7% |
| 1Q19 |
-11% |
| 2Q19 |
-21% |
| 3Q19 |
-4% |
| 4Q19 |
+3% |
| 1Q20 |
+18% |
| 2Q20 |
+2% |
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