Friday 29 April 2016

IBM report Q1 2016

IBM, Q1, 2016, front page

My American turn around IBM arrived with their first quarter report for 2016. The report was seriously bad and I am pretty sure that the share price dropped significantly but I no longer remember with how much. I was very disappointed with what they showed.

For the report in full please go here, for the previous summary please see IBM annual report 2015 and to find out more regarding IBM then please click on analysis of IBM 2016 (a new one will arrive tomorrow though).

What annoyed and scared me this most with this report was the amount of explanations that were given in the sense of adjusted, operative this and that, GAAP versus non-GAAP, continued versus discontinued, * and ** and even ***. I do not want explanations, I do not want to see variations. I want to see facts and either it is a fact or it is not.

In the financial statement below we see additional concerns and that is that the revenue keeps dropping, margins are dropping costs are up and if it would not have been for a tax benefit, which I really wonder how they could get, then the quarter would have been a tsunami and not the autumn storm that they now ended up with. Will they get another tax benefit next quarter. I guess not and the wheels better start turning... soon and quickly! 

IBM, Q1, 2016, financial statement

Conclusion: This quarter was a large disappointment to me. Everything looks bad and now they are even starting with their little * as an attempt to "explain" the situation for the shareholders. Please stop doing that! Gives us reality as it is and we either remain or we do not and if we decide to leave then a new shareholder will join so what is the problem? I will remain shareholder in IBM but this kind of silliness makes me grumpy. 

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