Arab Today, arab today ibm reports quarterly profit plunge on disposal of chip unit
Last Updated : GMT 14:36:27
Arab Today, arab today
Arab Today, arab today

IBM reports quarterly profit plunge on disposal of chip unit

Arab Today, arab today

Arab Today, arab today IBM reports quarterly profit plunge on disposal of chip unit

IBM reported
New York - AFP

IBM reported a collapse of its third-quarter profits Monday because of the $4.7 billion cost of offloading its micro-chip business to GlobalFoundries.
The computer services giant said that it was paying $1.5 billion in cash to semi-conductor experts GlobalFoundries to take over the chip unit.
IBM also published results for the third quarter, showing that net profit had fallen by 99.6 percent from the equivalent figure last year to $18 million, down from slightly more than $4.0 billion a year ago.
Although the cash payments will be made over three years, IBM is taking a $4.7 billion pre-tax charge in its financial results for the third quarter of 2014.
This covers the cash payment and all related charges and costs for getting rid of the costly unit.
Under the deal, GlobalFoundries will purchase and operate existing IBM semiconductor manufacturing operations and factories in East Fishkill, New York and Essex Junction, Vermont.
GlobalFoundries will emerge from the move as the largest semiconductor technology manufacturer in the US Northeast.
As part of the agreement, GlobalFoundries will gain thousands of patents and other intellectual property, making it the holder of one of the biggest semiconductor patent portfolios worldwide.
It will also become IBM's exclusive provider of semiconductor technology for servers for the next decade.
GlobalFoundries will obtain IBM's commercial microelectronics business, which includes ASIC and specialty foundry, manufacturing and related sales and operations.
With this sale, IBM will turn a page of its history and focus more narrowly on its service activities.
“The agreement expands our longstanding collaboration, which began when GlobalFoundries was created in 2009," IBM senior vice president and director of research John Kelly said in a statement.
"This acquisition enables IBM to focus on fundamental semiconductor and material science research, development capabilities and expertise in high-value systems, with GlobalFoundries' leadership in advanced technology manufacturing at scale and commitment to delivering future semiconductor technologies."
IBM currently is one of the last major companies in its sector to have a hold on the entire production cycle, from conceptualization to manufacturing and commercialization.
But in recent years, the group has gradually shed much of its other industrial activities to focus on service instead.

 

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today ibm reports quarterly profit plunge on disposal of chip unit Arab Today, arab today ibm reports quarterly profit plunge on disposal of chip unit

 



Arab Today, arab today
Arab Today, arab today Jordan airline suggests flyers 'talk'

GMT 11:59 2017 Friday ,24 March

Jordan airline suggests flyers 'talk'
Arab Today, arab today 5 Crafty Must-Have Limited-Budget Ideas

GMT 17:03 2017 Saturday ,25 March

5 Crafty Must-Have Limited-Budget Ideas
Arab Today, arab today Rebel supporters flood Yemen streets

GMT 06:39 2017 Monday ,27 March

Rebel supporters flood Yemen streets
View News in Arabic - Business: اقتصاد دولي
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Yemen children dream of school

GMT 07:25 2017 Friday ,24 March

Yemen children dream of school
Arab Today, arab today MP submits a petition to dismiss university head

GMT 06:21 2017 Friday ,24 March

MP submits a petition to dismiss university head
Arab Today, arab today Trump to roll back Obama clean power plan

GMT 11:10 2017 Monday ,27 March

Trump to roll back Obama clean power plan
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Uber grounds self-driving cars

GMT 09:11 2017 Monday ,27 March

Uber grounds self-driving cars
Arab Today, arab today Audi RS 5 Coupe acquires new design

GMT 13:22 2017 Thursday ,23 March

Audi RS 5 Coupe acquires new design
Arab Today, arab today Actress Mervat Amin reveals her role in new series
Arab Today, arab today Salvage of South Korea's Sewol ferry

GMT 04:51 2017 Friday ,24 March

Salvage of South Korea's Sewol ferry

GMT 06:04 2017 Thursday ,23 March

Haifa Wahby bets on her new drama show

GMT 22:00 2017 Thursday ,23 March

Number of unwedded girls amounts to 2.5m

GMT 18:57 2017 Tuesday ,21 March

Accessories designer reveals her new collection

GMT 15:25 2017 Tuesday ,21 March

2017 already marked

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures

GMT 20:03 2017 Saturday ,25 March

Health expert warns from dust sensitivity

GMT 07:36 2017 Wednesday ,22 March

US, Britain ban laptops on flights

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons

GMT 19:27 2017 Saturday ,11 March

Boualsof launches "Priestess Kahina" collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday