Börse Express – ROUNDUP 2 / IBM: Corona crisis paralyzed software business overnight

(new: Tuesday’s pre-IPO share price)

ARMONK (dpa-AFX) – The corona crisis forces companies to save
and thus promises difficult times for the IT industry. “Came in March
our software transactions stall almost overnight, “said
the chief financial officer of the US computer giant IBM , James
Kavanaugh, on business in the first quarter. This is because for
the IBM customers first of all the most pressing problems in the
The crisis has come to the fore. IBM makes at the same time
Hopes of being able to benefit in the long run if companies are considered
Follow more on cloud services and artificial intelligence.

The computer veteran presented after the US market closed on Monday
as the first technology group its current quarterly figures. The
Results only partially reflect the current situation because that
Business from Coronavirus in the first few weeks
was affected. Nevertheless, IBM reported clearly
Loss of business and canceled the annual forecast.

In the three months to the end of March, revenues decreased in the
Year-on-year increase of 3.4 percent to $ 17.6 billion ($ 16.2 billion
Euro). Profits fell a good quarter to $ 1.2 billion
(EUR 1.1 billion). Investors left the price of the IBM share in the
Pre-exchange trading on Tuesday at times by almost five percent

IBM has long been weak in its traditional core hardware business
with servers and mainframes, but at least posts strong
Growth in the cloud division with IT services on the Internet. Their
The previous head Arvind Krishna had recently been the head of
Ginni Rometty taken over. She had been in her tenure since 2012
tries to new IBM through a profound corporate change
Business areas such as cloud services, data analysis and artificial
Realigning intelligence. So far, however, the success has remained
within limits, quarters with business growth have been for years

Krishna was now trying to calm the investors down. IBM did
long-term contracts with large customers, so be stable
Revenue remains secure, he stressed. At the same time, the crisis
Companies have shown that they are more determined in their business
would have to modernize – and here IBM wants to contribute with expertise
artificial intelligence is ready.

With more home work, the demand for cloud services will also increase
rise, Krishna gave another example. IBM had for 2018
more than $ 30 billion to Linux specialists Red Hat
bought to strengthen itself in this area. That drove
However, the debt is high: IBM was last with more than 60
Billion dollars in chalk, while the cash reserves at 12
There were billions of dollars. The group will continue
Divest businesses to sharpen its profile, announced
Krishna an./so/hbr/DP/stw

 ISIN  US4592001014

AXC0295 2020-04-21 / 15: 00

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