INDUSTRY

IBM has announced first-quarter 2019 results. Its revenue was $18.2 billion, down 4.7% from this time last year, marking the third straight quarter of declining sales. The results of its supercomputer systems business reported revenues of $1.3 billion, down 11 percent. After hours today, its stock slid 3%.

In the first quarter, the company generated net cash from operating activities of $4.8 billion, or $2.3 billion, excluding Global Financing receivables. IBM's free cash flow was $1.7 billion. IBM returned $2.3 billion to shareholders through $1.4 billion in dividends and $0.9 billion in gross share repurchases. At the end of March 2019, IBM had $2.4 billion remaining in the current share repurchase authorization. IBM ended the first quarter with $18.1 billion of cash on hand.  Debt totaled $50.0 billion, including Global Financing debt of $29.5 billion. {module In-article} 

"In the first quarter, our cloud revenue growth accelerated, and we again grew in key, high-value areas in Cloud and Cognitive Software and in consulting," said Ginni Rometty, IBM chairman, president, and chief executive officer.  "IBM's investments in innovative technologies coupled with our industry expertise and our commitment to trust and security position us well to help clients move to chapter two of their digital reinvention." {module In-article}

"Our results reflect the fundamental changes we have made to our business, allowing us to generate greater operating leverage.  In the first quarter, we significantly expanded profit margins, led by our services businesses," said James Kavanaugh, IBM senior vice president, and chief financial officer.  "Our focus on prioritizing our investments in the emerging high-value segments of our industry has enabled us to drive higher profitability and strong cash generation."