IBM executives: long-term investment supercomputer Watson-IT information
On October 18, Beijing time news, IBM released the 2016 fiscal third-quarter earnings today. Report shows IBM's third-quarter revenue was $ 19.226 billion, slightly less than the $ 19.28 billion in the same period last year net profit of 2.853 billion dollars, than the $ 2.95 billion in the same period last year fell by 3.3%; $ 2.854 billion of profits from continuing operations last year, 2.962 billion dollars in the same period fell by 3.6%. IBM's third-quarter earnings exceeded Wall Street analysts ' expectations, but its shares are still down nearly 3%.
After the earnings release, IBM Senior Vice President and CFO Mading·shiluote (Martin Schroeter), Vice President, investor relations patelixia·Mofei (Patricia Murphy) was attended by executives at a subsequent conference call with analysts, interpretation of results and to answer analysts ' questions.
Following is the main content analyst q:
Morgan Stanley Analyst: you did not complete any major acquisitions in the quarter, but the knowledge solutions business (Note: includes business solution software and transaction processing software) gross profit margins fell 400 basis points, fell 200 basis points, then data center operations with the development of the scale, profit service revenue won't improve it?
Markus Schroth: that's right, supposedly with the reduction of our investment, cognitive solutions services have been expanding, their profit margins will continue to increase, but it is with the expansion of cognitive solutions, we see that there are a lot of opportunities, we continue to invest in this area. We haven't reached the extreme of size increase over investment growth rate, profit margins had fallen.
UBS Analyst: you talk a lot and things related to Watson, the Watson-related ads and, it will introduce you to Watson recent activities of the General Assembly, an analyst? How much revenue did you get? This part of the revenue of software revenue or as part of the Advisory services available? You referred to Watson on the day of the General Assembly probably four or five models, then which of these modes are effective? You also referred to Watson as a platform, then would you consider Watson put the platform on the other, such as Amazon AWS cloud services?
Markus Schroth: I answer the last question first: no, Watson runs on IBM's own cloud platform. In Watson's progress, you see we are announcing some Watson appear and scene news, these are all part of our cognitive solutions, including Watson's health business, Internet business, and Watson as a business platform.
Therefore, cognitive solutions has more than one Watson in the five Watson content solutions has reached eight. However, it is to be noted that, we are still creating new markets, Watson wants to be healthy, such as business technology progress and promotion it needs a certain amount of time, this is a long-term investment.
CLSA Analyst: software business for the quarter rose 3%, will explain how many of these are natural growth, and how much was due to the acquisition? The past few quarters of your software business growth is negative, this phase is over?
Markus Schroth: software business, rose 3%, effect of acquisitions on performance this quarter has been weaker than last quarter, but also is involved in all our business, buy business software business this quarter's performance does matter, but less significant than the effect in the second quarter, our yearly business is growing very well.
Analyst: the future, companies will continue to increase investment into it? Input if the growth in investment will grow and in what ways?
Markus Schroth: we will continue to invest in it. Our current investment growth rate will continue? In simple terms it is possible, but I hope you remember what we did this year upgrading IBM all operational and productive work, we continue to promote the company's services business growth, you can be sure of is, some businesses profit margins will improve.
Therefore, we will continue to invest in some business market, only after a certain level of investment could lead, in the next 90 days we will have more input in order to lay a better foundation for 2017, but once again that we have this year is 2017 years invested some layouts.
Canada Royal Bank Analyst: the past four quarters, the company's free cash flow turned to acquisitions to a large extent, in 2017, you will continue to conduct share buy-back projects, while only a small collection? Uses of free cash flow in the future what are the plans? Your companies may net 2017-100% were converted into free cash flow is defined as GAAP (United States generally accepted accounting principles) calculation data calculation is Non-GAAP?
Markus Schroth: net income for the first 90% to 100% into free cash flow is calculated according to the rules of GAAP figures, this is for everyone to understand the most direct method of calculation.
As regards the use of free cash flow, first of all, can be said with certainty, we will put all of the company's money is to be used, we will not be a lot of cash, the company will invest in the company's existing businesses, will continue to make acquisitions, as well as dividend to shareholders.
IBM高管：将长期投资超级计算机Watson - IT资讯
北京时间10月18日凌晨消息，IBM今天发布了2016财年第三季度财报。报告显示，IBM第三季度营收为192.26亿美元，略低于去年同期的192.80亿美元；净利润为28.53亿美元，比去年同期的29.50亿美元下滑3.3%；来自于持续运营业务的利润为28.54亿美元，比去年同期的29.62亿美元下滑3.6%。IBM第三季度业绩超出华尔街分析师预期，但其盘后股价仍下跌近3%。
财报发布后，IBM高级副总裁兼CFO马丁·施罗特（Martin Schroeter）、投资者关系副总裁帕特里夏·墨菲（Patricia Murphy）等高管出席了随后举行的分析师电话会议，解读财报要点并回答分析师提问。
以下为分析师问答环节主要内容：
摩根士丹利分析师：你们本季度并没有完成什么大的收购项目，但是认知解决方案业务（注：包括解决方案软件和交易处理软件业务）的毛利润率却同比下降400个基点，环比下降200个基点，那么，数据中心业务随着规模的发展，利润占服务收入的比例难道不会提升吗？
施罗特：你说的对，按说随着我们在投资方面的减少，认知解决方案服务的规模不断扩大，其利润率会不断提升，但是正是随着认知解决方案服务的规模的扩大，我们看到这里面有非常多的机会，促使我们继续在这个领域进行投资。我们现在还没到了规模的增长比率超过投资的增长速度的极端，所以利润率出现了下降。
瑞银分析师：你们讲了不少和Watson相关的事情，并且投放了一些与Watson相关的广告，那么可否介绍一下你们为Watson近期举办的的分析师大会活动的情况？你们获得了多少收入？这部分收入是软件收入还是作为咨询服务的一部分获得的？你们在那天的大会上提到了Watson可能的四五种变现模式，那么其中哪些模式是有效的？你们还提到了Watson作为一个平台的情况，那么你们会不会考虑将Watson放到别人家的平台，比如亚马逊的AWS云服务？
施罗特：我先回答最后一个问题：不会，Watson会在IBM自己的云平台上运行。在Watson取得的进展方面，你们也看到了我们宣布的一些Watson出现的行业和场景的新闻，这些都是我们的认知解决方案的一部分，包括Watson健康业务、物联网业务以及Watson作为平台的业务。
所以，现在有Watson技术在其中的认知解决方案已经超过五种，Watson内容出现的解决方案已经达到了八种。不过，需要指出的是，我们现在还是打造新的市场，想要将Watson健康等业务的技术和进展推广起来还需要一定的时间，这是一项长期的投资。
里昂证券分析师：软件业务本季度上升了3%，可否介绍一下其中有多少是自然的增长，有多少是因为收购？过去几个季度你们软件业务的增长都是负的，这个阶段是否已经过去？
施罗特：软件业务上涨了3%，其实本季度收购业务对业绩的影响已经比上个季度要弱，而且影响是涉及我们所有业务的，本季度收购业务对软件业务的表现确实有影响，但是不如第二季度影响那么显著，我们的年付业务的增长非常好。
分析师：未来的话，公司会继续加大投资方面的投入吗？在投资方面的投入如果增长的话会增长在哪些方面？
施罗特：我们会继续进行投资。我们目前的投资投入增长率是不是会持续下去？简单来说是有可能，但是希望大家记住我们今年所做的提升IBM所有业务和生产力的工作，我们在促使公司的服务业务增长，可以确定的是，有些业务的利润率会提升。
所以，我们会继续进行投资，有些业务所在的市场，只有进行某种级别的投资之后才有可能取得领先地位，在接下来的90天内我们会进行更多的投入以便为2017年打下更好的基础，但是，再次指出我们今年到目前已经为2017年的业务布局进行了一些投资。
加拿大皇家银行分析师：过去四个季度，公司的自由现金流的使用很大程度上转向了收购，那么2017年的话，你们会继续进行一些股票回购的项目、同时只进行一些小型的收购吗？未来公司自由现金流的使用计划是怎样的？另外你们提到的公司2017年净收入的90%-100%都转化为自由现金流指的是按GAAP（美国公认会计准则）计算的还是Non-GAAP计算的数据？
施罗特：首先我们90%到100%的净收入转化为自由现金流指的是按GAAP规则计算的数字，这是能让大家都理解的最直接的计算方式。
至于自由现金流的使用，首先，可以肯定的说，我们会把公司所有的钱都拿来使用，我们不会大量屯现金，公司会投资公司现有的业务，也会继续进行收购，同时还会对股东进行派息。