IBM: Watson Cook Book Revenues Disappoint
July 21, 2015
IBM is now at a baker’s dozen: 13 quarters of revenue decline. I scanned a number of write ups about IBM’s most recent quarterly report. I plucked “IBM Blames Almost Everything on Bad Quarterly Earnings” as a representative report.
The main point is that revenues were down:
International Business Machines Corp. (NYSE: IBM) released its second quarter financial results after markets closed on Monday. Big Blue had $3.84 in earnings per share on $20.8 billion in revenue compared to Thomson Reuters consensus estimates of $3.78 in EPS on $20.95 billion in revenue. The same period from last year had $4.43 in EPS on $24.36 billion in revenue.
Segment results were interesting. The good old mainframe business is still truckin’. Software revenues were juicy but down, which is a bummer.
Now I monitor the Watson products and services because I am interested in search. Based on the financial summaries I have scanned, there were no references to Watson cook book sales. I assumed that Watson cook book sales would boost the company’s revenues.
Disappointed. Yes, I was.
I assume IBM will rely on Watson to assist the firm in making better decisions. What if Watson were making the decisions. Disappointed. You bet. On the bright side, a used copy is available for less than $10 on Amazon.
Stephen E Arnold, July 21, 2015
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