IBM Corp, Second Quarter 2011 - Earnings Transcript

Aditi IT Consultancy Services, July 2011, Pages: 17

IBM Corporation's Second Quarter 2011 Earnings:
Armonk, New York: July 18, 2011 04:30 PM EDT
Website: http://www.ibm.com
Sector: Technology
Industry: Computer Services

International Business Machines Corporation (NASDAQ:IBM) is an information technology (IT) company. It operates under five segments: Global Technology Services (GTS), Global Business Services (GBS), Software, Systems and Technology, and Global Financing. IBM provides clients with business solutions requiring advanced computing power and storage capabilities. The company is headquartered in Armonk, New York and it has more than 426,000 employees worldwide. IBM's current market cap is 213.7 Billion USD with an EPS of 11.92.

The company has recently organized an teleconference call to announce its Second Quarter 2011 Earnings on July 18, 2011 at 04:30 PM EDT.

From the Management, JPatricia Murphy, Vice President, Investor Relations and Mark Loughridge, Senior Vice President and Chief Financial Officer, Finance and Enterprise Transformation hosted the conference and answered investors and analyst queries. The conference went on for 49 minutes and the entire transcription is available here for you to download.

What are Earnings Calls?

Public companies periodically announce its financial results of a reporting period by means of teleconference which are called as "Earnings Calls". The participants of such calls will be the board members of the company which is announcing its results and analysts / investors who are interested in participating and inquiring about the prospects of the company.

Semantics of an Earnings Call:

The Earnings Teleconference calls will usually start with a safe harbor statement by a company official to limit the company's liability should the future prove different from that stated in the discussion. Then one or more company officials, often including the Chief executive officer and Chief financial officer will discuss the operational results and financial statements for the period just ended and their outlook for the future. The teleconference will then be opened for questions by investors, financial analysts, and other call participants. Management will answer many of these questions, although if the data is not available to them they may decline or defer response.

Why Transcription is required for an Earnings Call?

These calls usually accompany with a press release containing the summary of the financial results, which are mostly declared in company's website or through media releases. However, most often that will not cover the entire conversation happening during the conference between the board members and the investors and analysts.

For that purpose, the conference calls are recorded completely and are presented as "transcripts", which are nothing but the text version of the entire conference call and not just the summary of it. The Earnings call transcripts will also have the speakers identification for the readers to understand them better.

The importance of Earnings Call Transcripts:

The information that are provided in such conference calls are very vital as the companies may provide guidance regarding future earnings per share, mergers or acquisitions that are planned, scaling up of operations, spreading across different geographies etc. Hence these transcripts are largely being sought by financial analysts, investors, journalists and bloggers.

How AITCS transcripts are different from others?

We at AITCS generate Earnings transcripts with highly experienced team who are well-versed with financial knowledge and stock market terminologies. There is no margin of error in our transcripts as they form the basis for taking critical decisions related to investing. Experience, accuracy, speed, and wide coverage of such conferences are helping us to position ourselves better when compared to our competitors in this field.

Management Participants

Patricia Murphy, Vice President, Investor Relations
Mark Loughridge, Senior Vice President and Chief Financial Officer, Finance and Enterprise
Transformation

Call Participants

Bill Shope, Goldman Sachs
Toni Sacconaghi, Sanford Bernstein
Benjamin Reitzes, Barclays Capital
Katy Huberty, Morgan Stanley
Chris Whitmore, Deutsche Bank
Scott Craig, Bank of America-Merrill Lynch
Richard Gardner, Citigroup
Robert Cihra, Caris & Company
Mark Moskowitz, JPMC
David Grossman, Stifel Nicolaus

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