Samsung Gains $4.6 Billion in New US Chip Funding
The US Department of Commerce plans to provide Samsung with up to $4.6 billion to expand its semiconductor manufacturing capabilities.
IBM reported a very good second quarter of 2021. Company's revenue was at $18.7 billion, up 3 percent compared with the same period of 2020 (flat adjusting for divested businesses and currency).
Cloud & Cognitive Software revenue went up 6 percent (up 2 percent adjusting for currency), while Global Business Services was up 12 percent (up 7 percent adjusting for currency). Net cash from operating activities was $17.7 billion and adjusted free cash flow of $11.0 billion, over last 12 months.
Total cloud revenue over last 12 months of $27.0 billion was up 15 percent (up 13 percent adjusting for divested businesses and currency). Total cloud revenue in the quarter of $7.0 billion went up 13 percent (up 9 percent adjusting for divested businesses and currency) led by Cloud & Cognitive Software cloud revenue (up 29 percent, 25 percent adjusting for currency) and Global Business Services cloud revenue (up 35 percent, 30 percent adjusting for currency).
Red Hat's revenue rose 20 percent (up 17 percent adjusting for currency), normalized for historical comparability. GAAP gross profit margin of 48.0 percent was flat. Operating (non-GAAP) gross profit margin of 49.3 percent was up 30 basis points. Debt was reduced by $6.4 billion since year-end 2020.
“In the second quarter client adoption of our hybrid cloud platform contributed to strong performance in Global Business Services and software and drove improved overall revenue growth. At the same time, we continued to help clients infuse our AI-based technology offerings into their core business workflows," said Arvind Krishna, IBM chairman and CEO. "We are pleased with our progress and we remain on track to deliver full-year revenue growth and meet our cash flow objective.“
“We expanded operating margins and grew profit dollars in the quarter, providing a key contribution to our cash performance," said James Kavanaugh, IBM senior vice president and CFO. "In the first half of the year we increased adjusted free cash flow, invested in strategic acquisitions to strengthen our hybrid cloud and AI capabilities, continued to deleverage and, consistent with our commitment, again increased our dividend.“
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