Big Blue misses estimates

Stefan Mileschin · 22nd October 2021, 07:03

Managed infrastructure suffers decline

IBM missed market estimates for quarterly revenue as its managed infrastructure business suffered from a decline in orders ahead of a spinoff next month.

The lower-margin, legacy unit provides technical support to IBM's clients and has shrunk in recent years as companies moved to the cloud, becoming a drag on Big Blue's earnings.

Chief Financial Officer James Kavanaugh said as IBM issued the effective date for the spin-off of the managed infrastructure business, the clients paused all new project activities at the end of September.

Revenue at the global technology services unit, which houses the business set to be called Kyndryl after the spinoff, fell 4.8 percent to $6.15 billion in the third quarter ended Sept. 30.

Kavanaugh also said demand dropped at the systems business, home to IBM's mainframe computers, as the end of the product cycle neared, driving a 12 percent fall in the unit's revenue.

https://fudzilla.com/news/53734-big-...sses-estimates

22nd October 2021, 07:03	#1
Stefan Mileschin [M] Reviewer Join Date: May 2010 Location: Romania Posts: 148,797	Big Blue misses estimates Managed infrastructure suffers decline IBM missed market estimates for quarterly revenue as its managed infrastructure business suffered from a decline in orders ahead of a spinoff next month. The lower-margin, legacy unit provides technical support to IBM's clients and has shrunk in recent years as companies moved to the cloud, becoming a drag on Big Blue's earnings. Chief Financial Officer James Kavanaugh said as IBM issued the effective date for the spin-off of the managed infrastructure business, the clients paused all new project activities at the end of September. Revenue at the global technology services unit, which houses the business set to be called Kyndryl after the spinoff, fell 4.8 percent to $6.15 billion in the third quarter ended Sept. 30. Kavanaugh also said demand dropped at the systems business, home to IBM's mainframe computers, as the end of the product cycle neared, driving a 12 percent fall in the unit's revenue. https://fudzilla.com/news/53734-big-...sses-estimates

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