IBM Says SEC Investigating Its Cloud-Computing Revenue Figures

July 31, 2013 Leave a comment

IBM Says SEC Investigating Its Cloud-Computing Revenue Figures

International Business Machines Corp. (IBM) said the Securities and Exchange Commission is investigating how it reports revenue from offsite cloud-computing services. IBM is cooperating with the SEC in the probe, which it learned about in May, it said today in a filing, without providing further details. Revenue from cloud services, such as storing clients’ data and software applications remotely, rose 70 percent in the first half of 2013 from a year earlier, it said in the filing, repeating a figure it has disclosed before. IBM Chief Executive Officer Ginni Rometty has identified cloud computing as one of the company’s chief sources of growth amid a slowdown in demand for services such as consulting. The Armonk, New York-based company is banking on such faster-growing markets, along with buybacks and acquisitions, to help reach profit of $20 a share by 2015, up from $15.25 last year. IBM fell as much as 1.3 percent in early trading today. It had closed yesterday little changed at $196.01.

To contact the reporter on this story: Crayton Harrison in New York at tharrison5@bloomberg.net

Filed under Investing Process, TMT Trends

About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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