IBM has reported financial growth for the first time since 2012, the company has revealed.
Revenues in the fourth quarter of 2017 grew 3.6 per cent, compared to the year before, to a total of $22.54 billion, marking the first rise since new CEO Ginni Rometty took the helm.
There are three key factors behind IBM’s growth – industrial computers, cloud business and the current fluctuations in currencies. The sale of industrial-strength computers jumped 32 per cent year-on-year, to $3.33 billion, and cloud rose 30 per cent, to $5.5bn. Currency fluctuations have given IBM a three per cent revenue increase.
However reports last week disclosed that the company could also be about to announce major job cuts as part of restructuring plans.
Discussing its goal of a $40bn revenue in 12 months, IBM’s chief of finance, James Kavanaugh, said the company is “ahead of track”. "That gives us the confidence to say we're going to grow revenue overall in 2018," Mr. Kavanaugh said in an interview.
The company’s shares dropped 4.3 per cent in after-hours trading. The price is almost the same as it was a year ago, with the S&P 500 index rising 23 per cent.
Despite impressive stats, it’s not the most important thing for IBM at the moment. The company is looking to get the majority of its shares from ‘strategic imperatives’ – new technology such as AI.
So far, IBM is at 49 per cent revenue from these technologies.
Image Credit: Ricochet64 / Shutterstock