Ibm back in the profit zone

IBM Back in the profit zone

Ibm has implemented $ 2021 $ 17.73 billion in the first quarter, an increase of 0.9 percent in the annual clearance. Gross profit climbed by 3.6 percent to 8.2 billion dollars. There is a significant change in operating profit: after a red zero ibms in the first quarter 2020, this time there is a plus of 905 million dollars. The net profit has fallen by 19 percent to $ 956 million.

This is out of the monday evening published financial figures ibms. It turns out that in the first quarter ibm was able to reduce its own debts by reducing the cash reserves and selling claims about $ 5.1 billion. "We still have work in front of us, but are sure that we can increase the year-round sales and reach our goal at the adjusted free cash flow 2021", said ibm boss arvind krishna.

This goal is eleven to twelve billion us dollars adjusted free cash flow. Expected costs of three billion dollars for a restructuring and the splitting of the ibm business with infrastructure services are already deducted. Last year it was $ 10.8 billion.

Red hat and cloud thrive

As already in the last quarters, the cloud and red has the driving force at ibm. The cloud business has increased 38 percent, red has 17 percent. Both numbers to the division "cloud cognitive software", the total of 3.8 percent grown to $ 5.4 billion sales.

Sales of the global business services division, which also pays to consulting services has increased by 2.4 percent to $ 4.2 billion. On the other hand, global technology services has a minus of 1.5 percent to $ 6.4 billion.

For the area systems, ibm reports 4.3 percent growth to 1.4 billion dollars. This falls hardware and operating systems. Ibm z growth, while data storage systems are not in demand. The gross margin has risen at all aforesaid groups. The global department has only implemented $ 240 million, equal to a funftel less than in ibm’s first quarter 2020.