IBM Q1 2017 Earnings Report — International Business Machines Corporation Revenue & Financial Results | Market Cap Arena

International Business Machines CorporationIBM

Q1 2017 Earnings

Reported April 25, 2017

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	Q1 2017	Q4 2016	Q1 2016	QoQ Change	YoY Change
Revenue	$18.2B	$21.8B	$18.7B	-16.6%	-2.8%
Op. Income	$1.9B	$5.0B	$1.5B	-62.2%	23.8%
Gross Margin	43.8%	50.0%	46.5%	-6.3pp	-2.7pp
Net Margin	9.6%	20.7%	10.8%	-11.0pp	-1.1pp
EPS (Diluted)	$1.85	$4.72	$2.09	-60.8%	-11.5%
Free Cash Flow	$3.1B	$2.5B	$4.4B	21.1%	-30.5%

Revenue Flow

Item	Amount
REVENUE	$18.2B
Cost of Revenue	$10.2B
GROSS PROFIT	$7.9B
R&D Expenses	$1.5B
Selling & Marketing	$363M
General & Administrative	$4.5B
SG&A Expenses	$4.9B
Other Expenses	-$315M
Operating Expenses	$6.0B
Cost & Expenses	$16.3B
OPERATING INCOME	$1.9B
Interest Income	$30M
Interest Expense	$135M
Other Income/Expenses	-$470M
INCOME BEFORE TAX	$1.4B
Income Tax Expense	-$329M
Net Income from Continuing Ops	$1.8B
Net Income from Discontinued Ops	-$3M
Other Adjustments	$0
NET INCOME	$1.8B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$1.8B
D&A	$1.1B
EBIT	$1.6B
EBITDA	$2.7B
EPS	$2
EPS Diluted	$2

Income Statement

Item	Amount
REVENUE	$18.2B
Cost of Revenue	$10.2B
GROSS PROFIT	$7.9B
R&D Expenses	$1.5B
Selling & Marketing	$363M
General & Administrative	$4.5B
SG&A Expenses	$4.9B
Other Expenses	-$315M
Operating Expenses	$6.0B
Cost & Expenses	$16.3B
OPERATING INCOME	$1.9B
Interest Income	$30M
Interest Expense	$135M
Other Income/Expenses	-$470M
INCOME BEFORE TAX	$1.4B
Income Tax Expense	-$329M
Net Income from Continuing Ops	$1.8B
Net Income from Discontinued Ops	-$3M
Other Adjustments	$0
NET INCOME	$1.8B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$1.8B
D&A	$1.1B
EBIT	$1.6B
EBITDA	$2.7B
EPS	$2
EPS Diluted	$2

Cash Flow Statement

Item	Amount
Net Income	$1.8B
Depreciation & Amortization	$1.1B
Stock-Based Compensation	$129M
Deferred Income Tax	$0
Other Non-Cash Items	$13M
Change in Working Capital	$964M
OPERATING CASH FLOW	$4.0B
Capital Expenditure	-$877M
Acquisitions (Net)	-$110M
Purchases of Investments	-$1.3B
Sales/Maturities of Investments	$981M
Other Investing Activities	$1.5B
NET CASH FROM INVESTING	$350M
Net Debt Issuance	$476M
Common Stock Repurchased	-$1.3B
Common Dividends Paid	-$1.3B
Other Financing Activities	$54M
NET CASH FROM FINANCING	-$2.1B
FREE CASH FLOW	$3.1B
Net Change in Cash	$2.3B

Balance Sheet

Item	Amount
Cash & Equivalents	$10.1B
Short-Term Investments	$599M
Net Receivables	$25.9B
Inventory	$1.6B
Other Current Assets	$1M
TOTAL CURRENT ASSETS	$42.9B
PP&E (Net)	$10.9B
Goodwill	$36.3B
Intangible Assets	$4.4B
Long-Term Investments	$4.5B
Tax Assets	$6.5B
Other Non-Current Assets	$12.0B
TOTAL NON-CURRENT ASSETS	$74.6B
TOTAL ASSETS	$117.5B
Account Payables	$5.3B
Short-Term Debt	$8.3B
Deferred Revenue	$12.4B
Other Current Liabilities	$3.2B
TOTAL CURRENT LIABILITIES	$36.5B
Long-Term Debt	$34.4B
Deferred Revenue NC	$3.6B
Deferred Tax Liabilities	$17.0B
Other Non-Current Liabilities	$24.6B
TOTAL NON-CURRENT LIABILITIES	$62.6B
TOTAL LIABILITIES	$99.0B
Common Stock	$54.1B
Additional Paid-In Capital	$0
Retained Earnings	$153.3B
Treasury Stock	-$160.4B
Accum. Other Comp. Income	-$28.7B
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$18.3B
Minority Interest	$121M
TOTAL EQUITY	$18.4B
TOTAL LIABILITIES & EQUITY	$117.5B
Total Debt	$42.8B
Net Debt	$32.7B