IBM: Fiscal 2Q19 Financial Results
-21% Y/Y for storage hardware, worst figure since 1FQ14!
This is a Press Release edited by StorageNewsletter.com on July 19, 2019 at 2:00 pmIBM Corp. reports 2Q19 financial results ended June 30, 2019.
As usual, Big Blue revealed only one figure of its storage business and for hardware: -21% in revenue, a really bad percentage, being the decrease from one year ago.
It reflects declines in high end which is tied to mainframe cycle, and the ongoing competitive dynamics and pricing pressures in the mid-range.
The company does not published storage software revenue probably in better health.
-21% is the worst record since 1FQ14! For the former quarters, it was -6%, -7% and -11% for 3FQ18, 4FQ18 and 1FQ19 respectively. Since 4FQ11, IBM saw yearly quarterly increase for only 5 quarters.
In term of revenue our estimation for 2FQ18 was $604 million for storage, which means a mere figure of 480 million for last quarter, or 2% of global sales, down 4% Y/Y. For current fiscal year, it will probably be less that $1 billion, lowest historical figure, less than Pure Storage for example.
The firm stated: “For systems (includes systems hardware and OSs software), sales of $1.8 billion were down 19.5% for the most recent quarter, with growth in Power, more than offset by the impact of product cycle dynamics in IBM Z and storage.”
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% |
| 2Q17 | 8% |
| 3Q17 | 4% |
| 4Q17 | 8% |
| 1Q18 | -15% |
| 2Q18 |
2% |
| 3Q18 | -6% |
| 4Q18 |
-7% |
| 1Q19 |
-11% |
| 2Q19 |
-21% |
To read the earnings call transcript
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