The following bullets are some highlights from IBM's IBM Q4 2013 earnings conference call:
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- IBM expects revenue of $27.7 billion and operating EPS of $6.13, which is up 14% year to year.
- IBM expects at least $18 of operating EPS in 2014. That's up 10.5% from $16.28 in 2013
- Good quarter in Software constant currency growth in all brands
- IBM strengthened several of the areas they've been targeting like analytics, cloud, and security. Software revenue was up 4% at constant currency and profit was up 6%.
- Hardware continued to impact overall performance. Hardware segment profit was down over $750 million in the quarter and $1.7 billion for the year, challenges in there hardware business models are specific to power, storage, and x86.
- In 2013, IBM delivered $99.8 billion in revenue, expanded gross and net margins, and increased there operating EPS 7% to $16.28. Software, Services, and Financing all expanded margins and grew profit
- IBM's revenue was down 5%, or growth in Software, Services, and Financing, which was more than offset by a decline in Systems and Technology. The currency impact of revenue was 2 points, and currency also impacted profit performance operating gross margin expanded by 30 basis points, driven by Services and an improving mix. Pre-tax income of $7.4 billion was down 8% and pre-tax margin down 80 basis points, with the declines driven entirely by our Hardware business
- Looking at the cash metrics, IBM generated free cash flow of $8.4 billion in the quarter and returned substantial value to shareholders. For the year, IBM generated $15 billion in free cash flow, which was down over $3 billion year to year.
- IBM ended the year with a cash balance of over $11 billion, consistent with year-end 2012.
- Americas revenue was down 2% year to year
- Asia Pacific, revenue was down 6%
- Japan, where revenue was up 4%
- Growth in Canada
- Good performance in Latin America, led by Brazil.
- China was down 23%
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