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IBM brings $17.79 billion for Q3 revenue

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IBM released on Wednesday its third-quarter (Q3) revenue report, revealing the hardware company’s rise in cloud unit, faced with a drop in IBM Z Power systems.

The hardware computer mogul reported a non-generally accepted accounting principle (GAAP) of $2.52 earnings per share (EPS) revenue, resulting in $17.6 billion, with a 1 percent rise Year-over-Year (YoY).

Non-GAAP earnings are earnings measured that are not developed using GAAP and are not needed for external reporting or other public disclosures.

In parallel, the company revealed that its cloud and cognitive software sum reached $5.7 billion its Q3 revenue, with a 2.5 percent augmentation.

While IBM witnessed a rise in cloud incomes, its system revenue dropped by 11.9 percent, resulting in $1.1 billion in total revenue. This decline was mostly directed by a drop in IBM Z and Power Systems that was faced with a storage system growth of 11 percent.

On the other hand, IBM’s Global Technology Services (GTS) unveiled a 4.8 percent drop, summing to $6.2 billion, while Global Business revenue rose by 11.6 percent, growing to $4.4 billion.

“We again had solid cash generation for the quarter and over the last year, while maintaining a strong balance sheet and the liquidity to support our hybrid cloud and AI strategy,” IBM senior vice president, and chief financial officer James Kavanaugh said in a statement.

“Our post-separation portfolio mix is shifted toward our growth vectors, with a higher-value recurring revenue stream and strong cash generation, allowing us to continue to invest in the business and provide attractive shareholder returns,” he added.

As for its cash flow and balance sheet, IBM produced $2.7 billion in net cash from Q3’s operating activities. Throughout the past 12 months, the computer hardware giant generated $16.1 billion from operating activities alone compared to 2020’s free cash flow, which accumulated to $9.2 billion for its Q3 revenue.

After excepting cash impacts of $1.8 billion directed at the structural actions and transaction separation costs, IBM altered the cash flow revenue to reach a total of $11.1 billion.

“With the separation of Kyndryl early next month, IBM takes the next step in our evolution as a platform-centric hybrid cloud and AI company,” said IBM chairman and chief executive officer Arvind Krishna.

“We continue to make progress in our software and consulting businesses, which represent our higher growth opportunities. With our increased focus and agility to better serve clients, we are confident in achieving our medium-term objectives of mid-single-digit revenue growth and strong free cash flow generation,” he added.

The hardware firm closed its Q3 with an $8.4 billion cash on hand – accessible balance referring to all cash – which also includes marketable securities. The balance witnessed a $5.9 billion drop from the end of 2020, mirroring a sum of acquisitions of $3.0 billion, in addition to debt reduction payments.

Daryn is a technical writer with thorough history and experience in both academic and digital writing fields.

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UK to block Facebook parent Meta’s $315M acquisition of Giphy

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It is expected that the UK’s Competition and Markets Authority (CMA) will reverse Facebook parent company Meta’s purchase of Giphy in the coming days, according to the Financial Times.

 If that happens, it will mark the first time that the country’s competition regulator has unraveled a major tech acquisition.

Meta (Facebook previously) announced in May 2020 that it bought the GIF platform with the goal of rolling it into Instagram. Reports set the price of the deal at $400 million.

As such, Meta has previously argued that because Giphy doesn’t have any operations in the UK, the CMA has no jurisdiction in this case. In addition, it claimed Giphy’s paid services couldn’t be classed as display advertising according to the CMA’s market definition.

“After failing to compete with new innovators, Facebook illegally bought or buried them when their popularity became an existential threat,” Holly Vedova, acting head of the U.S.’ Federal Trade Commission’s (FTC) competition bureau, said in a statement.

The FTC filed a revised complaint against the firm just weeks after a judge threw out its original case in June. The judge had accused federal regulators of failing to provide enough evidence that Facebook created a monopoly in the social networking space.

The CMA opened an investigation into the deal the following month after it raised concerns about the acquisition. The regulator declared in August that the deal could prevent rivals such as TikTok and Snapchat from accessing Giphy’s library of GIFs, as well as removing a potential competitor to Meta in the UK advertising sector.

Meta ended Giphy’s paid ad partnerships, which the CMA said ceased the company’s ad expansion, including to other countries. Also, the watchdog suggested Meta could be forced to sell the service, having until December 1st to publish its final decision.

The UK regulator fined Meta, in October, more than $67.2 million for a “major breach” of an order to remain separate from Giphy during its investigation. The fine was the largest ever handed down by the agency. This step was taken after the regulator accused Meta of “consciously refusing to report” information about the merger.

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Australia plans laws to make social networks identify trolls

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In a step meant to set restrictions on social media platforms, the Australian government is planning to introduce laws that force social media platforms to “unmask” online trolls despite experts saying it will do little to reduce online abuse.

Prime Minister Scott Morrison revealed plans for legislation that could force social networks to reveal the identities of trolls and others making defamatory comments. A complaint mechanism would require online platforms to take these hostile posts down, and if they don’t, the court system could order a given site to provide details of the offending poster.

“Digital platforms, these online companies, must have proper processes to enable the takedown of this content. There needs to be an easy and quick and fast way for people to raise these issues with these platforms and get it taken down,” Morrison said on Sunday afternoon.

The PM’s announcement of the anti-troll social media legislation comes two months after he said social media platforms were a “coward’s palace” and declared that they would be viewed as publishers if they are unwilling to identify users that post foul and offensive content.

In addition, the proposed laws would also make it mandatory for social media platforms to have a standardised complaints system that allows defamatory remarks to be removed and trolls identified with their consent.

As such, Digital Rights Watch executive director Lucie Krahulcova, made some remarks regarding these laws, saying they are not focused on pursuing people who libel, malign, harass, or commit similar crimes online.

“They’re not actually very excited about enforcing [existing laws] on behalf of women, people of colour, and historically I think there’s plenty of evidence of that in Australia,” Krahulcova said.

The laws, if passed, would also redirect the liability for potential defamation from organisations running a social media page to social media platforms instead.

Federal Attorney-General Michaelia Cash explained the attempt to shift defamation liability is in response to the recent Voller High Court case, which set a legal precedent where Australians who maintain social media pages could be publishers of defamatory comments made by others on social media even if they did not know about the comments. Since the ruling, media outlet CNN disabled its Facebook page in Australia.

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Nissan investing in electric vehicles, battery development

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Nissan investing in electric vehicles, battery development

Nissan said Monday it is investing 2 trillion yen ($17.6 billion) over the next five years and developing a cheaper, more powerful battery to boost its electric vehicle lineup.

The Japanese automaker’s chief executive, Makoto Uchida, said 15 new electric vehicles will be available by fiscal 2030. Nissan Motor Co. is aiming for a 50% “electrification” of the company’s model lineup, under what Uchida called the “Nissan Ambition 2030” long-term plan. Electrified vehicles include hybrids and other kinds of environmentally friendly models other than just electric vehicles.

The effort is focused mainly on electric vehicles to cut emissions and meet various customers’ needs, said Uchida. Nissan also will reduce carbon emissions at its factories, he added.

The company has been struggling to put the scandal of its former Chairman Carlos Ghosn behind it. Ghosn, who led Nissan for two decades, after he was sent to Japan by French alliance partner Renault, was arrested in Tokyo in 2018 on various financial misconduct charges.

Uchida made no mention of the scandal but referred to “past mistakes” he promised won’t be repeated at Nissan.

Nissan’s “electrification” rests on developing a new ASSB, or all solid state battery, that it categorized as “a breakthrough” for being cheaper and generating more power than batteries now in use.

That means electric powertrains can be more easily used in trucks, vans and other heavier vehicles because the batteries can be smaller. The ASSB will be in mass production by 2028, according to Nissan.

The costs of electric vehicles will also fall thanks to the battery innovation to levels comparable with regular gasoline cars, Uchida said.

“Nissan has emerged from a crisis and is ready to make a new start,” he said.

All top automakers, including Nissan’s Japanese rival Toyota Motor Corp., are working on electric vehicles, amid growing concern over climate change and sustainability. Global consumers are also demanding more safety features.

Uchida said Nissan was hiring 3,000 engineers to strengthen its research, including digital technology for vehicles.

Nissan, based in Yokohama, Japan, has suffered recently from the computer chips shortage that’s slammed all automakers because of lockdowns and other measures at chip factories to combat the coronavirus pandemic.

The maker of the Infiniti luxury models, Leaf electric vehicle and Z sportscar is projecting a return to profitability for the fiscal year through March 2022 after racking up two straight years of losses.


TOKYO (AP)

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