International Business Machines Corp.(IBM: NYSE) stated fourth-quarter 2015 diluted earnings from ongoing operations of $4.59 per share, down 17 percent year-to-year. Operating diluted earnings from ongoing operations were $4.84 per share, contrast with operating diluted earnings of $5.81 per share in the fourth quarter of 2014, down 17 percent. The prior-year gain from the divestiture of the System x business influenced operating diluted earnings per share from ongoing operations by 20 points.
Fourth-quarter net revenue from ongoing operations was $4.5 billion contrast with $5.5 billion in the fourth quarter of 2014, down 19 percent. Operating net revenue was $4.7 billion contrast with $5.8 billion in the fourth quarter of 2014, down 19 percent. The prior-year gain from the divestiture of the System x business influenced operating net income by 19 points.
Total revenues from ongoing operations for the fourth quarter of 2015 of $22.1 billion were down 9 percent (down 2 percent adjusting for currency) from the fourth quarter of 2014.
Fourth-quarter operating diluted earnings exclude $0.25 per share of charges: $0.11 per share for the amortization of purchased intangible assets and other acquisition-related charges, and $0.14 per share for non-operating retirement-related charges driven by changes to plan assets and liabilities primarily related to past market performance.
Fourth-quarter revenues from the organization’s planned imperatives — cloud, analytics and engagement — inclined 10 percent year to year (up 16 percent adjusting for currency). For the full year, revenues from planned imperatives raised 17 percent (up 26 percent adjusting for currency and the divested System x business) to $28.9 billion and now represent 35 percent of total IBM merged revenue.
For the full year, total cloud revenues (public, private and hybrid) inclined 43 percent (up 57 percent adjusting for currency and the divested System x business) to $10.2 billion. Revenues for cloud delivered as a service — a subset of the total cloud revenue — inclined 50 percent to $4.5 billion; and the annual as-a-service run rate inclined to $5.3 billion from $3.5 billion in the fourth quarter of 2014. Revenues from business analytics raised 7 percent (up 16 percent adjusting for currency) to $17.9 billion. Revenues from mobile more than tripled and from security raised 5 percent (up 12 percent adjusting for currency).
Revenues from the Software segment were down 11 percent to $6.8 billion (down 6 percent adjusting for currency) contrast with the fourth quarter of 2014.
Revenues from IBM’s key middleware products, which comprise WebSphere, Information Administration, Tivoli, Workforce Solutions and Rational products, were $4.9 billion, down 10 percent (down 6 percent adjusting for currency) year to year. Operating systems revenues of $0.5 billion were down 12 percent (down 7 percent adjusting for currency) year to year.
The organization’s total gross profit margin from ongoing operations was 51.7 percent in the 2015 fourth quarter contrast with 53.3 percent in the 2014 fourth quarter. Total operating (non-GAAP) gross profit margin from ongoing operations was 52.7 percent in the 2015 fourth quarter contrast with 53.9 percent in the 2014 fourth quarter.
Total expense and other income from ongoing operations inclined to $6.3 billion, up 9 percent contrast to the prior-year period. S,G&A expense of $5.2 billion reduced 15 percent year over year. R,D&E expense of $1.4 billion inclined 3 percent year to year; the related expense-to-revenue ratio raised to 6.2 percent contrast with 5.5 percent in the year-ago period. Other (income) and expense was revenue of $146 million contrast with prior-year income of $1.5 billion. Intellectual property and custom development revenue was $193 million and interest expense was $128 million.
Pre-tax income from ongoing operations reduced 28 percent to $5.1 billion. Pre-tax margin from ongoing operations reduced 6.3 points to 23.1 percent. Operating (non-GAAP) pre-tax income from ongoing operations reduced 25 percent to $5.5 billion and pre-tax margin was 25.0 percent, a decrease of 5.7 points year to year.
IBM’s tax rate from ongoing operations was 12.5 percent, down 9.7 points year over year; the operating (non-GAAP) tax rate was 14.7 percent, down 7.1 points contrast to the year-ago period driven by current period discrete items.
The company generated full-year free cash flow of $13.1 billion, not taking into account Global Financing receivables, up $0.7 billion contrast to 2014. The company returned $9.5 billion to shareholders through $4.9 billion in dividends and $4.6 billion of gross share repurchases. The balance sheet remains strong and is well positioned to support the business over the long term.
At the end of December 2015, IBM: NYSE had about $5.6 billion remaining from the current share repurchase authorization.
Diluted earnings per share from ongoing operations were $13.60, down 13 percent contrast to the 2014 period. Net income from ongoing operations for the twelve months ended December 31, 2015 was $13.4 billion contrast with $15.8 billion in the year-ago period, a decrease of 15 percent.
Merged net revenue was $13.2 billion contrast to $12.0 billion in the year-ago period, counting operating net losses in suspended operations related to the divested Microelectronics business. Merged diluted earnings per share were $13.42 contrast to $11.90, up 13 percent year to year. Revenues from ongoing operations for the twelve-month period totaled $81.7 billion, a decrease of 12 percent (down 1 percent year to year, adjusting for currency and divested businesses) contrast with $92.8 billion for the first twelve months of 2014.
Share of International Business Machines Corp.(NYSE:IBM) dropped -4.89% and closed at $121.85.