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International Business Machines (IBM) FY2014 results: revenue $92.8 billion, down 5.7% on the year

International Business Machines Corp. (IBM) reported revenue of $92.8 billion for fiscal 2014, the year ended 31 December 2014, down 5.7% on the year before. Net income was $12.0 billion, down 27.1%, and diluted earnings per share $11.90. The figures are the company's own, from the 10-K it filed with the SEC on 24 February 2015.

Revenue
$92.8 billion
-5.7% on the year
FY2007FY2014
Operating margin
n/a
FY2007FY2014
Net income
$12.0 billion
-27.1% on the year
FY2007FY2014
Diluted EPS
$11.90
-20.3% on the year
FY2007FY2014

this yearthe year beforeHover a bar for its figure.

The year in brief

Income statement (profit and loss)

$ millionFY2014FY2013FY2012On the yearLast 8 years
Revenue92,79398,367102,874-5.7%
Cost of revenue46,38649,68352,513-6.6%
Gross profit46,40748,68450,298-4.7%
Gross margin50.0%49.5%48.9%
Research and development5,4375,7435,816-5.3%
Selling, general and administrative23,18023,45123,463-1.2%
Interest expense484402459+20.4%
Pre-tax income19,98620,24422,540-1.3%
Income tax4,2343,3635,541+25.9%
Effective tax rate21.2%16.6%24.6%
Net income12,02216,48316,604-27.1%
Net margin13.0%16.8%16.1%
Diluted EPS$11.90$14.94$14.37-20.3%
$ million except per share.
Read moreFree cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ millionFY2014FY2013FY2012On the yearLast 8 years
Operating cash flow16,86817,48519,586-3.5%
Capital expenditure3,7403,6234,082+3.2%
Free cash flow13,12813,86215,504-5.3%
Free cash flow margin14.1%14.1%15.1%
Cash from investing-3,001n/an/a
Cash from financing-15,452n/an/a
Depreciation and amortisation4,4924,6784,676-4.0%
Share-based compensation512614688-16.6%
Buybacks13,67913,85911,995-1.3%
Dividends paid4,2654,0583,773+5.1%
Diluted shares, weighted1,010m1,103m1,155m-8.4%
Shares outstanding at period end991m1,054m1,117m-6.1%

Balance sheet

$ millionFY2014FY2013FY2012On the yearLast 8 years
Shareholders' equity11,86822,79218,860-47.9%
Non-controlling interest146137124+6.6%
Debt40,72239,71833,269+2.5%
Other liabilities64,53562,99466,960+2.4%
Total liabilities and equity117,271125,641119,213-6.7%
Fixed assets10,77113,82113,996-22.1%
Goodwill30,55631,18429,247-2.0%
Intangible assets3,1043,8713,787-19.8%
Investments9.0359727-97.5%
Cash and equivalents8,47610,71610,412-20.9%
Receivables9,09010,46510,667-13.1%
Inventory2,1032,3102,287-9.0%
Other assets53,16252,91548,090+0.5%
Total assets117,271125,641119,213-6.7%

10-K for the year ended 31 December 2014, filed 24 February 2015: the filing.