Summary
IBM announced a significant strategic move on October 8, 2020, by disclosing its intention to separate its Managed Infrastructure Services unit, a part of its Global Technology Services division, into a new, independent public company. This move signals a major reshaping of IBM's business portfolio, focusing on higher-growth areas and shedding a mature, potentially less strategic segment. Alongside this separation announcement, IBM provided preliminary financial results for the quarter ended September 30, 2020. While these figures are approximate and subject to revision, they offer an early look at the company's performance leading into this significant structural change. The company also highlighted its use of non-GAAP financial measures, which management believes provide valuable insights for investors, with reconciliations to GAAP provided.
Key Highlights
- 1IBM to spin off its Managed Infrastructure Services unit into a new public company.
- 2The spin-off is part of a strategic move to reshape IBM's business portfolio.
- 3Preliminary financial results for the quarter ended September 30, 2020, were released.
- 4These preliminary financial results are approximate and subject to revision.
- 5IBM is hosting an investor webcast on October 8, 2020, to discuss the separation.
- 6The company is providing non-GAAP financial information, with reconciliations to GAAP, to offer additional investor insights.