IBM's 3Q 2012 earnings were just announced, with diluted earnings of $3.33 per share, a year-to-year increase of 4 percent, or $3.44 per share, up 8 percent, excluding the impact of UK pension-related charges.
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.
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. Currency negatively impacted revenue growth by nearly $1 billion.
IBM chairman, president, and CEO Ginny Rometty had this to say about the quarter's financial performance: "In the third quarter, we continued to drive margin, profit, and earnings growth through our focus on higher-value businesses, strategic growth initiatives, and productivity.
"Looking ahead, we see good opportunity with a strong product lineup heading into this quarter and annuity businesses that provide a solid base of revenue, profit, and cash. We are reiterating our full-year 2012 operating earnings per share expectation of at least $15.10."
Following are further highlights from the quarter:
- GAAP: $3.33, up 4 percent; $3.44, up 8 percent, excluding UK pension-related charges;
- Operating (non-GAAP): $3.62, up 10 percent;
- 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, or 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, or down 12 percent adjusting for currency;
Growth markets revenue down 1 percent, or up 4 percent adjusting for currency;
- BRIC countries up 4 percent, or 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.