-->+0.75% after hours
* Reports Q1 (Mar) earnings of $2.35 per share, excluding non-recurring items, $0.26 better than the Capital IQ Consensus of $2.09; revenues fell 4.6% year/year to $18.68 bln vs the $18.29 bln Capital IQ Consensus.
- Cognitive Solutions (includes solutions software and transaction processing software) -- revenues of $4.0 billion, down 1.7%, up 0.4% adjusting for currency.
- Global Business Services (includes consulting, global process services, application management) -- revenues of $4.1 billion, down 4.3%, down 2.3% adjusting for currency.
- Technology Services and Cloud Platforms (includes infrastructure services, technical support services, integration software) -- revenues of $8.4 billion, down 1.5%, up 1.9% adjusting for currency.
- Systems (includes systems hardware and operating systems software) -- revenues of $1.7 billion, down 21.8%, down 20.6% adjusting for currency.
- Q1 revs from the company's strategic imperatives --- cloud, analytics and engagement --- increased 14% year to year (up 17% adjusting for currency).Total cloud revenues (public, private and hybrid) for the quarter increased 34% (up 36% adjusting for currency). Cloud revenue over the trailing 12 months was $10.8 billion. The annual exit run rate for cloud delivered as a service -- a subset of the total cloud revenue -- increased to $5.4 billion from $3.8 billion in the first quarter of 2015. Revenues from analytics increased 7% (up 9% adjusting for currency). Revenues from mobile increased 88% (up 93% adjusting for currency) and from security increased 18% (up 20% adjusting for currency).
* Co reaffirms guidance for FY16, sees EPS of at least $13.50, excluding non-recurring items, vs. $13.54 Capital IQ Consensus Estimate. IBM had previously expected a free cash flow realization of GAAP net income which implied a full-year free cash flow range of $11 billion to $12 billion. The company now expects free cash flow to be at the high end of that range at the same base level of operating (non-GAAP) EPS.
* "In the first quarter, we invested $3.6 billion in acquisitions and capital expenditures, and returned $2.2 billion to shareholders through dividends and gross share repurchases."