Mainframes And Services Bolster IBM - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Software // Enterprise Applications

Mainframes And Services Bolster IBM

The company posted solid second-quarter increases in revenue and net income thanks to gains in mainframe sales and several new services deals.

IBM on Thursday reported solid increases in second-quarter revenue and earnings on the strength of robust mainframe sales and the signing of several lucrative IT and business process outsourcing contracts.

For the three months ending June 30, IBM's revenue increased 7% to $23.2 billion compared with a year earlier while net income rose 15% to $2 billion. For the period, the company posted per-share earnings of $1.16, an increase of 18%.

Revenue from the company's systems and technology group increased 10% to $4.2 billion as sales of mainframe computing power increased sharply. Total delivery of mainframe computing power as measured in MIPS (millions of instructions per second) increased 75% in the second quarter compared with a year earlier, IBM said. Sales of PCs and other personal computing devices increased 16% to $3.2 billion.

Revenue from IBM's Global Services unit increased 7% during the quarter to $11.3 billion. During the period, IBM signed new services contracts totaling more than $10 billion. Among others, IBM announced services contracts during the quarter with Aetna, Marathon Oil, and Qantas Airways.

IBM's software group didn't fare as well. Second-quarter sales totaled $3.5 billion, essentially flat with a year ago. Within that, operating-system revenue fell 2%.

Most of IBM's sales growth in the second quarter came outside of the United States, with Asia/Pacific leading the way with a 13% increase. Sales increased 9% in the region comprising Europe, the Middle East and Africa. Sales in the Americas rose 2%.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
Commentary
Future IT Teams Will Include More Non-Traditional Members
Lisa Morgan, Freelance Writer,  4/1/2020
News
COVID-19: Using Data to Map Infections, Hospital Beds, and More
Jessica Davis, Senior Editor, Enterprise Apps,  3/25/2020
Commentary
Enterprise Guide to Robotic Process Automation
Cathleen Gagne, Managing Editor, InformationWeek,  3/23/2020
White Papers
Register for InformationWeek Newsletters
Video
Current Issue
IT Careers: Tech Drives Constant Change
Advances in information technology and management concepts mean that IT professionals must update their skill sets, even their career goals on an almost yearly basis. In this IT Trend Report, experts share advice on how IT pros can keep up with this every-changing job market. Read it today!
Slideshows
Flash Poll