IBM has made public the results what has been achieved in the third quarter of your fiscal year 2021, which show sustained growth in the cloud, as well as a decrease in the Systems area that encompasses the IBM and IBM Power teams. Meanwhile, Red Hat’s revenue during the period increased 17%.
In total, the company brought in $ 17.6 billion, a figure that represents a 1% year-on-year rise. Meanwhile, each of its titles has risen $ 2.52. Regarding the revenues of its cloud and cognitive software division, they have reached 5.7 billion dollars, 2.5% more. Meanwhile, those in the Systems area remained at 1,100 million dollars, 11.9% less. Those of Storage systems, meanwhile, increased 11% year-on-year.
Another of the company’s divisions, Global Technology Services, dropped its revenue 4.8% to $ 6.2 billion. Regarding Global Business Services, a division that includes the areas of Consulting, Application Management and Global Process Services; they rose 11.6%.
James Kavanaugh, Vice President and CFO, IBM, stressed that the company has once again had «solid cash flow generation in the quarter and throughout the last year, while maintaining a strong balance sheet and liquidity to support our hybrid cloud and Artificial Intelligence strategy. Our post-separation portfolio is focused on our growth vectors, with a recurring revenue stream of higher value and strong cash generation, which will allow us to continue investing in the business and offer attractive dividends to shareholders.«.
At this time, IBM is immersed in an outsourcing process of its managed infrastructure services division, which will be an independent company in the coming weeks (in November) and will be called Kyndryl. When the outsourcing is complete, each IBM shareholder will receive one share in Kyndryl for every five they own in IBM, and the group will keep 19.9% of the total shares in the new company.
In this regard, Arvind Krishna, CEO of IBM, points out that «With the separation of Kyndryl next month, IBM takes the next step in the evolution towards a hybrid cloud and AI-centric platform-centric company. We continue to advance our software and consulting divisions, which represent our greatest growth opportunities. With a more intense focus and more agility in customer service, we are confident of achieving our medium-term goals of revenue growth of around 5% and strong generation of free cash flow.«.