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IBM RELEASES THIRD-QUARTER RESULTS

Published

2 years ago

on

Accelerated Software revenue growth, expanded gross profit margin, and strong free cash flow

ARMONK, N.Y., Oct. 23, 2024 /PRNewswire/ — IBM (NYSE: IBM) today announced third-quarter 2024 earnings results.

“Our third-quarter performance was led by double-digit growth in Software, including a re-acceleration in Red Hat. We continue to see great momentum in AI as our models are trusted, fit-for-purpose, and lower cost, with performance leadership. Our generative AI book of business now stands at more than $3 billion, up more than $1 billion quarter to quarter,” said Arvind Krishna, IBM chairman, president and chief executive officer. “Heading into the final quarter of 2024, we expect fourth-quarter constant currency revenue growth to be consistent with the third quarter, with continued strength in Software. We are confident in our ability to deliver more than $12 billion in free cash flow for the year, driven by continued expansion of our operating margins.” 

Third-Quarter Highlights

Revenue
– Revenue of $15.0 billion, up 1 percent, up 2 percent at constant currency
– Software revenue up 10 percent
– Consulting revenue flat
– Infrastructure revenue down 7 percent
Profit
– Gross Profit Margin: GAAP: 56.3 percent, up 190 basis points; Operating (Non-GAAP):             
  57.5 percent, up 210 basis points
Cash Flow
– Year to date, net cash from operating activities of $9.1 billion; free cash flow of $6.6 billion

THIRD-QUARTER 2024 INCOME STATEMENT SUMMARY

 

GAAP results include impact of one-time, non-cash pension settlement charge (1)

 
 

Revenue

 

Gross

Profit

 
 

Gross

Profit

Margin

 
 

Pre-tax

Income/

(Loss) (1)

 

Pre-tax

Income

Margin (1)

 

Net

Income/

(Loss) (1)

 

Diluted

Earnings/

(Loss) Per

Share (1)

GAAP from

Continuing

Operations

$   15.0 B

 
 

$   8.4 B

 
 

56.3

%

 

$ (0.8) B

 
 

(5.4)

%

 

$  (0.3) B

 
 

$    (0.34)

 

Year/Year

1

%(2)

 

5

%

 

1.9

Pts

 

NM

 
 

-18.1

Pts

 

NM

 
 

NM

 

Operating

(Non-GAAP)

 
 
 

$   8.6 B

 
 

57.5

%

 

$    2.5 B

 
 

16.6

%

 

$     2.2 B

 
 

$     2.30

 

Year/Year

 
 
 

5

%

 

2.1

Pts

 

8

%

 

1.0

Pts

 

6

%

 

5

%

(1)  2024 GAAP results include the impact of a one-time, non-cash, pension settlement charge of $2.7 billion ($2.0 billion net of tax) related

       to the transfer of a portion of the company’s U.S. defined benefit pension obligations and related plan assets to a third-party insurer,

       announced in September 2024.

(2)  2% at constant currency.

“Our investments are paying off in Software as we’ve repositioned our portfolio in recent years. In the third quarter, Software delivered broad-based growth and now represents nearly 45 percent of our total revenue. Our ongoing focus on product mix, coupled with our productivity initiatives enables us to continue to drive operating leverage in our underlying profit performance,” said James Kavanaugh, IBM senior vice president and chief financial officer. “With our strong cash generation, we are well-positioned to continue investing for growth while returning value to shareholders through dividends.”

Segment Results for Third Quarter

Software — revenues of $6.5 billion, up 9.7 percent, up 9.6 percent at constant currency:
– Hybrid Platform & Solutions up 10 percent
      — Red Hat up 14 percent
      — Automation up 13 percent
      — Data & AI up 5 percent
      — Security down 1 percent
– Transaction Processing up 9 percent

Consulting — revenues of $5.2 billion, down 0.5 percent, down 0.2 percent at constant currency:
– Business Transformation up 2 percent
– Technology Consulting down 4 percent
– Application Operations down 1 percent

Infrastructure — revenues of $3.0 billion, down 7.0 percent, down 6.7 percent at constant currency:
– Hybrid Infrastructure down 9 percent
      — IBM Z down 19 percent
      — Distributed Infrastructure down 3 percent
– Infrastructure Support down 4 percent, down 3 percent at constant currency

Financing — revenues of $0.2 billion, down 2.5 percent, down 1.3 percent at constant currency

Cash Flow and Balance Sheet

In the third quarter, the company generated net cash from operating activities of $2.9 billion, down $0.2 billion year to year. IBM’s free cash flow was $2.1 billion, up $0.4 billion year to year. The company returned $1.5 billion to shareholders in dividends in the third quarter.

For the first nine months of the year, the company generated net cash from operating activities of $9.1 billion, down $0.4 billion year to year. IBM’s free cash flow was $6.6 billion, up $1.5 billion year to year.

IBM ended the third quarter with $13.7 billion of cash, restricted cash and marketable securities, up $0.3 billion from year-end 2023. Debt, including IBM Financing debt of $10.4 billion, totaled $56.6 billion, flat year to date.

Expectations

Revenue: The company expects fourth-quarter constant currency revenue growth consistent with the third quarter. At current foreign exchange rates, currency is expected to be about a half-point headwind to revenue growth in the quarter
Free cash flow: The company continues to expect more than $12 billion in free cash flow for the full year

Forward-Looking and Cautionary Statements

Except for the historical information and discussions contained herein, statements contained in this release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on the company’s current assumptions regarding future business and financial performance. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially, including, but not limited to, the following: a downturn in economic environment and client spending budgets; a failure of the company’s innovation initiatives; damage to the company’s reputation; risks from investing in growth opportunities; failure of the company’s intellectual property portfolio to prevent competitive offerings and the failure of the company to obtain necessary licenses; the company’s ability to successfully manage acquisitions, alliances and dispositions, including integration challenges, failure to achieve objectives, the assumption of liabilities and higher debt levels; fluctuations in financial results; impact of local legal, economic, political, health and other conditions; the company’s failure to meet growth and productivity objectives; ineffective internal controls; the company’s use of accounting estimates; impairment of the company’s goodwill or amortizable intangible assets; the company’s ability to attract and retain key employees and its reliance on critical skills; impacts of relationships with critical suppliers; product quality issues; impacts of business with government clients; reliance on third party distribution channels and ecosystems; cybersecurity and data privacy considerations; adverse effects related to climate change and environmental matters; tax matters; legal proceedings and investigatory risks; the company’s pension plans; currency fluctuations and customer financing risks; impact of changes in market liquidity conditions and customer credit risk on receivables; potential failure of the separation of Kyndryl Holdings, Inc. to qualify for tax-free treatment; risk factors related to IBM securities; and other risks, uncertainties and factors discussed in the company’s Form 10-Qs, Form 10-K and in the company’s other filings with the U.S. Securities and Exchange Commission or in materials incorporated therein by reference.

Statements in this communication regarding the strategic acquisition that are forward-looking may include projections as to closing date for the transaction, the extent of, and the time necessary to obtain, the regulatory approvals required for the transaction, the anticipated benefits of the transaction, the impact of the transaction on IBM’s business, the synergies from the transaction, and the combined company’s future operating results.

Any forward-looking statement in this release speaks only as of the date on which it is made. Except as required by law, the company assumes no obligation to update or revise any forward-looking statements.

Presentation of Information in this Press Release

For generative AI, book of business includes Software transactional revenue, SaaS Annual Contract Value and Consulting signings. The generative AI book of business is further defined within Exhibit 99.2 in the Form 8-K that includes this press release.

In an effort to provide investors with additional information regarding the company’s results as determined by generally accepted accounting principles (GAAP), the company has also disclosed in this press release the following non-GAAP information, which management believes provides useful information to investors:

IBM results —

adjusting for currency (i.e., at constant currency);
presenting operating (non-GAAP) earnings per share amounts and related income statement items;
free cash flow;
adjusted EBITDA.

The rationale for management’s use of these non-GAAP measures is included in Exhibit 99.2 in the Form 8-K that includes this press release and is being submitted today to the SEC.

Conference Call and Webcast

IBM’s regular quarterly earnings conference call is scheduled to begin at 5:00 p.m. ET, today. The Webcast may be accessed via a link at https://www.ibm.com/investor/events/earnings-3q24. Presentation charts will be available shortly before the Webcast.

Financial Results Below (certain amounts may not add due to use of rounded numbers; percentages presented are calculated from the underlying whole-dollar amounts).

Contact:       IBM
                      Sarah Meron, 347-891-1770
                      sarah.meron@ibm.com

                      Tim Davidson, 914-844-7847
                      tfdavids@us.ibm.com

INTERNATIONAL BUSINESS MACHINES CORPORATION

COMPARATIVE FINANCIAL RESULTS

(Unaudited; Dollars in millions except per share amounts)

 
 

Three Months Ended
September 30,

 
 

Nine Months Ended
September 30,

 
 

2024

 
 

2023 (1)

 
 

2024

 
 

2023 (1)

 

REVENUE BY SEGMENT

 
 
 
 
 
 
 
 
 
 
 

Software

$                   6,524

 
 

$                   5,947

 
 

$                19,162

 
 

$                17,832

 

Consulting

5,152

 
 

5,178

 
 

15,517

 
 

15,601

 

Infrastructure

3,042

 
 

3,272

 
 

9,764

 
 

9,988

 

Financing

181

 
 

186

 
 

543

 
 

566

 

Other

68

 
 

170

 
 

214

 
 

491

 

TOTAL REVENUE

14,968

 
 

14,752

 
 

45,199

 
 

44,479

 
 
 
 
 
 
 
 
 
 
 
 
 

GROSS PROFIT

8,420

 
 

8,023

 
 

25,112

 
 

24,033

 
 
 
 
 
 
 
 
 
 
 
 
 

GROSS PROFIT MARGIN

 
 
 
 
 
 
 
 
 
 
 

Software

83.2

%

 

82.3

%

 

83.1

%

 

82.3

%

Consulting

28.4

%

 

27.6

%

 

26.7

%

 

26.3

%

Infrastructure

55.0

%

 

53.7

%

 

55.3

%

 

54.0

%

Financing

47.2

%

 

49.7

%

 

48.2

%

 

47.5

%

 
 
 
 
 
 
 
 
 
 
 
 

TOTAL GROSS PROFIT MARGIN

56.3

%

 

54.4

%

 

55.6

%

 

54.0

%

 
 
 
 
 
 
 
 
 
 
 
 

EXPENSE AND OTHER INCOME

 
 
 
 
 
 
 
 
 
 
 

S,G&A

4,911

 
 

4,458

 
 

14,823

 
 

14,212

 

R,D&E

1,876

 
 

1,685

 
 

5,512

 
 

5,027

 

Intellectual property and custom development income

(238)

 
 

(190)

 
 

(696)

 
 

(618)

 

Other (income) and expense

2,244

 
 

(215)

 
 

1,694

 
 

(721)

 

Interest expense

429

 
 

412

 
 

1,288

 
 

1,202

 

TOTAL EXPENSE AND OTHER INCOME

9,222

 
 

6,150

 
 

22,621

 
 

19,102

 
 
 
 
 
 
 
 
 
 
 
 
 

INCOME/(LOSS)  FROM CONTINUING OPERATIONS

BEFORE INCOME TAXES

(802)

 
 

1,873

 
 

2,491

 
 

4,931

 

Pre-tax margin

(5.4)

%

 

12.7

%

 

5.5

%

 

11.1

%

Provision for/(Benefit from) income taxes

(485)

 
 

159

 
 

(597)

 
 

702

 

Effective tax rate

60.4

%

 

8.5

%

 

(24.0)

%

 

14.2

%

 
 
 
 
 
 
 
 
 
 
 
 

INCOME/(LOSS) FROM CONTINUING OPERATIONS

$                     (317)

 
 

$                   1,714

 
 

$                   3,088

 
 

$                   4,229

 
 
 
 
 
 
 
 
 
 
 
 
 

DISCONTINUED OPERATIONS

 
 
 
 
 
 
 
 
 
 
 

Income/ (loss) from discontinued operations, net of taxes

(13)

 
 

(10)

 
 

21

 
 

(15)

 
 
 
 
 
 
 
 
 
 
 
 
 

NET INCOME/(LOSS) (2)

$                     (330)

 
 

$                   1,704

 
 

$                   3,109

 
 

$                   4,214

 
 
 
 
 
 
 
 
 
 
 
 
 

EARNINGS/(LOSS) PER SHARE OF COMMON STOCK (2)

 
 
 
 
 
 
 
 
 
 
 

Assuming Dilution

 
 
 
 
 
 
 
 
 
 
 

Continuing Operations

$                    (0.34)

 
 

$                      1.86

 
 

$                      3.30

 
 

$                      4.59

 

Discontinued Operations

$                    (0.01)

 
 

$                    (0.01)

 
 

$                      0.02

 
 

$                    (0.02)

 

TOTAL

$                    (0.36)

 
 

$                      1.84

 
 

$                      3.32

 
 

$                      4.58

 
 
 
 
 
 
 
 
 
 
 
 
 

Basic

 
 
 
 
 
 
 
 
 
 
 

Continuing Operations

$                    (0.34)

 
 

$                      1.88

 
 

$                      3.36

 
 

$                      4.65

 

Discontinued Operations

$                    (0.01)

 
 

$                    (0.01)

 
 

$                      0.02

 
 

$                    (0.02)

 

TOTAL

$                    (0.36)

 
 

$                      1.87

 
 

$                      3.38

 
 

$                      4.63

 
 
 
 
 
 
 
 
 
 
 
 
 

WEIGHTED-AVERAGE NUMBER OF COMMON SHARES

OUTSTANDING (M’s)

 
 
 
 
 
 
 
 
 
 
 

Assuming Dilution

923.6

 
 

923.7

 
 

935.4

 
 

920.3

 

Basic

923.6

 
 

912.8

 
 

920.3

 
 

910.1

 

____________________

(1)  Recast to reflect January 2024 segment changes.

(2)  2024 includes the impact of a one-time, non-cash, pension settlement charge of $2.7 billion ($2.0 billion net of tax).

 

 

INTERNATIONAL BUSINESS MACHINES CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEET

(Unaudited)

 

(Dollars in Millions)

 

At

September 30,
2024

 

At

December 31,
2023

ASSETS:

 
 
 
 

Current Assets:

 
 
 
 

Cash and cash equivalents

 

$                    13,197

 

$                    13,068

Restricted cash

 

17

 

21

Marketable securities

 

505

 

373

Notes and accounts receivable – trade, net

 

5,390

 

7,214

Short-term financing receivables, net

 

5,765

 

6,793

Other accounts receivable, net

 

928

 

640

Inventories

 

1,367

 

1,161

Deferred costs

 

966

 

998

Prepaid expenses and other current assets

 

2,408

 

2,639

Total Current Assets

 

30,543

 

32,908

 
 
 
 
 

Property, plant and equipment, net

 

5,614

 

5,501

Operating right-of-use assets, net

 

3,355

 

3,220

Long-term financing receivables, net

 

4,931

 

5,766

Prepaid pension assets

 

7,975

 

7,506

Deferred costs

 

788

 

842

Deferred taxes

 

6,943

 

6,656

Goodwill

 

61,092

 

60,178

Intangibles, net

 

11,090

 

11,036

Investments and sundry assets

 

2,009

 

1,626

Total Assets

 

$                  134,339

 

$                  135,241

 
 
 
 
 

LIABILITIES:

 
 
 
 

Current Liabilities:

 
 
 
 

Taxes

 

$                      1,584

 

$                      2,270

Short-term debt

 

3,599

 

6,426

Accounts payable

 

3,274

 

4,132

Deferred income

 

12,882

 

13,451

Operating lease liabilities

 

790

 

820

Other liabilities

 

6,725

 

7,022

Total Current Liabilities

 

28,853

 

34,122

 
 
 
 
 

Long-term debt

 

52,980

 

50,121

Retirement-related obligations

 

10,366

 

10,808

Deferred income

 

3,666

 

3,533

Operating lease liabilities

 

2,757

 

2,568

Other liabilities

 

11,186

 

11,475

Total Liabilities

 

109,809

 

112,628

 
 
 
 
 

EQUITY:

 
 
 
 

IBM Stockholders’ Equity:

 
 
 
 

Common stock

 

61,013

 

59,643

Retained earnings

 

149,789

 

151,276

Treasury stock – at cost

 

(169,935)

 

(169,624)

Accumulated other comprehensive income/(loss)

 

(16,418)

 

(18,761)

Total IBM Stockholders’ Equity

 

24,448

 

22,533

 
 
 
 
 

Noncontrolling interests

 

82

 

80

Total Equity

 

24,530

 

22,613

 
 
 
 
 

Total Liabilities and Equity

 

$                  134,339

 

$                  135,241

 

INTERNATIONAL BUSINESS MACHINES CORPORATION

CASH FLOW ANALYSIS

(Unaudited)

 
 
 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

(Dollars in Millions)

 

2024

 

2023

 

2024

 

2023

Net Cash from Operations per GAAP

 

$            2,881

 

$            3,055

 

$         9,115

 

$            9,468

 
 
 
 
 
 
 
 
 

Less: change in IBM Financing receivables

 

873

 

1,092

 

1,824

 

3,119

Capital Expenditures, net

 

55

 

(282)

 

(705)

 

(1,226)

 
 
 
 
 
 
 
 
 

Free Cash Flow

 

2,064

 

1,682

 

6,586

 

5,123

 
 
 
 
 
 
 
 
 

Acquisitions

 

(2,513)

 

(4,589)

 

(2,748)

 

(4,945)

Divestitures

 

2

 

(10)

 

705

 

(4)

Dividends

 

(1,542)

 

(1,515)

 

(4,601)

 

(4,522)

Non-Financing Debt

 

(383)

 

(942)

 

693

 

7,572

Other (includes IBM Financing net receivables and debt)

 

131

 

41

 

(379)

 

(1,068)

 
 
 
 
 
 
 
 
 

Change in Cash, Cash Equivalents, Restricted Cash and Short-term

Marketable Securities

 

$          (2,241)

 

$          (5,333)

 

$              257

 

$            2,156

 

INTERNATIONAL BUSINESS MACHINES CORPORATION

CASH FLOW

(Unaudited)

 
 
 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

(Dollars in Millions)

 

2024

 

2023

 

2024

 

2023

Net Income/(loss) from Operations

 

$                       (330)

 

$                     1,704

 

$                     3,109

 

$                     4,214

Pension Settlement Charge

 

2,725

 

–

 

2,725

 

–

Depreciation/Amortization of Intangibles (1)

 

1,268

 

1,093

 

3,555

 

3,243

Stock-based Compensation

 

330

 

286

 

966

 

843

Operating assets and liabilities/Other, net (2)

 

(1,984)

 

(1,119)

 

(3,063)

 

(1,952)

IBM Financing A/R

 

873

 

1,092

 

1,824

 

3,119

Net Cash Provided by Operating Activities

 

$                     2,881

 

$                     3,055

 

$                     9,115

 

$                     9,468

 
 
 
 
 
 
 
 
 

Capital Expenditures, net of payments & proceeds (3)

 

55

 

(282)

 

(705)

 

(1,226)

Divestitures, net of cash transferred

 

2

 

(10)

 

705

 

(4)

Acquisitions, net of cash acquired

 

(2,513)

 

(4,589)

 

(2,748)

 

(4,945)

Marketable Securities / Other Investments, net

 

869

 

2,927

 

(810)

 

(3,732)

Net Cash Provided by/(Used in) Investing Activities

 

$                    (1,587)

 

$                   (1,953)

 

$                   (3,558)

 

$                    (9,906)

 
 
 
 
 
 
 
 
 

Debt, net of payments & proceeds

 

(1,259)

 

(1,550)

 

(777)

 

4,619

Dividends

 

(1,542)

 

(1,515)

 

(4,601)

 

(4,522)

Financing – Other

 

35

 

(67)

 

(26)

 

(252)

Net Cash Provided by/(Used in) Financing Activities

 

$                    (2,766)

 

$                   (3,132)

 

$                   (5,403)

 

$                       (154)

 
 
 
 
 
 
 
 
 

Effect of Exchange Rate changes on Cash

 

207

 

(119)

 

(29)

 

(120)

Net Change in Cash, Cash Equivalents and Restricted Cash

 

$                    (1,264)

 

$                   (2,149)

 

$                        125

 

$                       (713)

____________________

(1)  Includes operating lease right-of-use assets amortization. 

(2)  Includes a $0.7 billion tax effect associated with the one-time, non-cash pension settlement charge in the third-quarter 2024. 

(3)  2024 includes proceeds of $0.4 billion from the sale of certain QRadar SaaS assets. 

 

INTERNATIONAL BUSINESS MACHINES CORPORATION

GAAP NET INCOME TO ADJUSTED EBITDA RECONCILIATION

(Unaudited)

 
 
 

Three Months Ended

September 30,

 

Nine Months Ended

September 30,

(Dollars in Billions)

 

2024

 

2023

 

Yr/Yr

 

2024

 

2023

 

Yr/Yr

Net Income/(Loss) as reported (GAAP) (1)

 

$         (0.3)

 

$           1.7

 

$         (2.0)

 

$           3.1

 

$           4.2

 

$         (1.1)

Less: Income/(loss) from discontinued operations, net of tax

 

0.0

 

0.0

 

0.0

 

0.0

 

0.0

 

0.0

Income/(Loss) from continuing operations

 

(0.3)

 

1.7

 

(2.0)

 

3.1

 

4.2

 

(1.1)

Provision for/(Benefit from) income taxes from continuing ops.

 

(0.5)

 

0.2

 

(0.6)

 

(0.6)

 

0.7

 

(1.3)

Pre-tax income/(loss) from continuing operations (GAAP)

 

(0.8)

 

1.9

 

(2.7)

 

2.5

 

4.9

 

(2.4)

Non-operating adjustments (before tax)

 
 
 
 
 
 
 
 
 
 
 
 

Acquisition-related charges (2)

 

0.5

 

0.4

 

0.1

 

1.5

 

1.2

 

0.2

Non-operating retirement-related costs/(income) (1)

 

2.8

 

0.0

 

2.8

 

3.0

 

0.0

 

3.0

 
 
 
 
 
 
 
 
 
 
 
 
 

Operating (non-GAAP) pre-tax income/(loss) from continuing ops.

 

2.5

 

2.3

 

0.2

 

6.9

 

6.1

 

0.8

 
 
 
 
 
 
 
 
 
 
 
 
 

Net interest expense

 

0.3

 

0.3

 

0.0

 

0.7

 

0.7

 

0.0

Depreciation/Amortization of non-acquired intangible assets

 

0.7

 

0.7

 

0.0

 

2.1

 

2.0

 

0.1

Stock-based compensation

 

0.3

 

0.3

 

0.0

 

1.0

 

0.8

 

0.1

Workforce rebalancing charges

 

0.3

 

0.0

 

0.3

 

0.7

 

0.4

 

0.3

Corporate (gains) and charges (3)

 

(0.4)

 

0.0

 

(0.3)

 

(0.6)

 

0.0

 

(0.6)

 
 
 
 
 
 
 
 
 
 
 
 
 

Adjusted EBITDA

 

$           3.8

 

$           3.5

 

$           0.2

 

$        10.8

 

$        10.1

 

$           0.8

____________________

(1) 2024 includes the impact of a one-time, non-cash pension settlement charge of $2.7 billion ($2.0 billion net of tax). 

(2) Primarily consists of amortization of acquired intangible assets. 

(3) Corporate (gains) and charges primarily consists of unique corporate actions such as gains on divestitures and asset sales (e.g., certain QRadar SaaS assets). 

 

INTERNATIONAL BUSINESS MACHINES CORPORATION

SEGMENT DATA

(Unaudited)

 
 
 

Three Months Ended September 30, 2024

 
 
 
 
 
 
 
 
 
 
 
 
 
 

(Dollars in Millions)

 

Software

 
 

Consulting

 
 

Infrastructure

 
 

Financing

 

Revenue

 

$                       6,524

 
 

$                        5,152

 
 

$                        3,042

 
 

$                            181

 

Segment Profit

 

$                       1,969

 
 

$                           559

 
 

$                           422

 
 

$                              86

 

Segment Profit Margin

 

30.2

%

 

10.9

%

 

13.9

%

 

47.5

%

Change YTY Revenue

 

9.7

%

 

(0.5)

%

 

(7.0)

%

 

(2.5)

%

Change YTY Revenue – Constant Currency

 

9.6

%

 

(0.2)

%

 

(6.7)

%

 

(1.3)

%

 
 

Three Months Ended September 30, 2023 (1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 

(Dollars in Millions)

 

 Software

 
 

Consulting

 
 

Infrastructure

 
 

Financing

 

Revenue

 

$                       5,947

 
 

$                        5,178

 
 

$                        3,272

 
 

$                            186

 

Segment Profit

 

$                       1,722

 
 

$                           566

 
 

$                           490

 
 

$                              91

 

Segment Profit Margin

 

29.0

%

 

10.9

%

 

15.0

%

 

49.2

%

__________________

(1) Recast to reflect January 2024 segment changes. 

 
 

Nine Months Ended September 30, 2024

 
 
 
 
 
 
 
 
 
 
 
 
 
 

(Dollars in Millions)

 

Software

 
 

Consulting

 
 

Infrastructure

 
 

Financing

 

Revenue

 

$                     19,162

 
 

$                     15,517

 
 

$                       9,764

 
 

$                           543

 

Segment Profit

 

$                       5,582

 
 

$                       1,447

 
 

$                       1,387

 
 

$                           254

 

Segment Profit Margin

 

29.1

%

 

9.3

%

 

14.2

%

 

46.9

%

Change YTY Revenue

 

7.5

%

 

(0.5)

%

 

(2.3)

%

 

(4.1)

%

Change YTY Revenue – Constant Currency

 

8.0

%

 

1.1

%

 

(1.2)

%

 

(3.1)

%

 
 

Nine Months Ended September 30, 2023 (1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 

(Dollars in Millions)

 

 Software

 
 

Consulting

 
 

Infrastructure

 
 

Financing

 

Revenue

 

$                     17,832

 
 

$                     15,601

 
 

$                       9,988

 
 

$                           566

 

Segment Profit

 

$                       4,850

 
 

$                       1,476

 
 

$                       1,529

 
 

$                           256

 

Segment Profit Margin

 

27.2

%

 

9.5

%

 

15.3

%

 

45.2

%

____________________

(1) Recast to reflect January 2024 segment changes. 

 

INTERNATIONAL BUSINESS MACHINES CORPORATION

U.S. GAAP TO OPERATING (Non-GAAP) RESULTS RECONCILIATION

(Unaudited; Dollars in millions except per share amounts)

 
 

Three Months Ended September 30, 2024

 
 

Continuing Operations

 
 

GAAP

 
 

Acquisition-

Related

Adjustments (1)

 
 

Retirement-

Related

Adjustments (2)

 
 

Tax

Reform

Impacts

 
 

Operating

(Non-GAAP)

 

Gross Profit

$       8,420

 
 

$                          192

 
 

$                                     —

 
 

$                       —

 
 

$           8,612

 

Gross Profit Margin

56.3

%

 

1.3

pts

 

—

pts

 

—

pts

 

57.5

%

S,G&A

$       4,911

 
 

$                        (300)

 
 

$                                     —

 
 

$                       —

 
 

$           4,611

 

Other (Income) & Expense

2,244

 
 

—

 
 

(2,797)

 
 

—

 
 

(553)

 

Total Expense & Other (Income)

9,222

 
 

(300)

 
 

(2,797)

 
 

—

 
 

6,125

 

Pre-tax Income/(Loss) from Continuing Operations

(802)

 
 

492

 
 

2,797

 
 

—

 
 

2,487

 

Pre-tax Income Margin from Continuing Operations

(5.4)

%

 

3.3

pts

 

18.7

pts

 

—

pts

 

16.6

%

Provision for/(Benefit from) Income Taxes (3)

$        (485)

 
 

$                          119

 
 

$                                  700

 
 

$                       (2)

 
 

$              332

 

Effective Tax Rate

60.4

%

 

(7.2)

pts

 

(39.8)

pts

 

(0.1)

pts

 

13.4

%

Income/(Loss) from Continuing Operations

$        (317)

 
 

$                          373

 
 

$                               2,097

 
 

$                        2

 
 

$           2,155

 

Income Margin from Continuing Operations

(2.1)

%

 

2.5

pts

 

14.0

pts

 

0.0

pts

 

14.4

%

Diluted Earnings/(Loss) Per Share: Continuing

Operations (4)

$       (0.34)

 
 

$                         0.40

 
 

$                                 2.27

 
 

$                   0.00

 
 

$             2.30

 
 
 
 
 

Three Months Ended September 30, 2023

 
 

Continuing Operations

 
 

GAAP

 
 

Acquisition-

Related

Adjustments (1)

 
 

Retirement-

Related

Adjustments (2)

 
 

Tax

Reform

Impacts

 
 

Operating

(Non-GAAP)

 

Gross Profit

$       8,023

 
 

$                          162

 
 

$                                     —

 
 

$                       —

 
 

$           8,185

 

Gross Profit Margin

54.4

%

 

1.1

pts

 

—

pts

 

—

pts

 

55.5

%

S,G&A

$       4,458

 
 

$                        (277)

 
 

$                                     —

 
 

$                       —

 
 

$           4,181

 

Other (Income) & Expense

(215)

 
 

0

 
 

12

 
 

—

 
 

(203)

 

Total Expense & Other (Income)

6,150

 
 

(277)

 
 

12

 
 

—

 
 

5,885

 

Pre-tax Income/(Loss) from Continuing Operations

1,873

 
 

438

 
 

(12)

 
 

—

 
 

2,299

 

Pre-tax Income Margin from Continuing Operations

12.7

%

 

3.0

pts

 

(0.1)

pts

 

—

pts

 

15.6

%

Provision for/(Benefit from) Income Taxes (3)

$          159

 
 

$                            99

 
 

$                                   (14)

 
 

$                      24

 
 

$              268

 

Effective Tax Rate

8.5

%

 

2.7

pts

 

(0.5)

pts

 

1.0

pts

 

11.7

%

Income/(Loss) from Continuing Operations

$       1,714

 
 

$                          340

 
 

$                                      1

 
 

$                     (24)

 
 

$           2,031

 

Income Margin from Continuing Operations

11.6

%

 

2.3

pts

 

0.0

pts

 

(0.2)

pts

 

13.8

%

Diluted Earnings/(Loss) Per Share: Continuing

Operations

$         1.86

 
 

$                         0.37

 
 

$                                 0.00

 
 

$                  (0.03)

 
 

$             2.20

 

____________________

(1)    Includes amortization of purchased intangible assets, in process R&D, transaction costs, applicable restructuring and related expenses, tax charges related to acquisition integration and pre-closing charges, such as financing costs.

(2)    Includes amortization of prior service costs, interest cost, expected return on plan assets, amortized actuarial gains/losses, the impacts of any plan curtailments/settlements and pension insolvency costs and other costs. 2024 also includes the impact of a one-time, non-cash, pre-tax pension settlement charge of  $2.7 billion ($2.0 billion net of tax).

(3)    Tax impact on operating (non-GAAP) pre-tax income from continuing operations is calculated under the same accounting principles applied to the As Reported pre-tax income under ASC 740, which employs an annual effective tax rate method to the results.

(4)   Operating (non-GAAP) earnings per share was calculated using 938.4 million shares, which includes 14.9 million dilutive potential shares under our stock-based compensation plans and contingently issuable shares. Due to the GAAP net loss for the three months ended September 30, 2024, these dilutive potential shares were excluded from the GAAP loss per share calculation as the effect would have been antidilutive. The difference in share count resulted in an additional $(0.04) reconciling item.

 

INTERNATIONAL BUSINESS MACHINES CORPORATION

U.S. GAAP TO OPERATING (Non-GAAP) RESULTS RECONCILIATION

(Unaudited; Dollars in millions except per share amounts)

 
 

Nine Months Ended September 30, 2024

 
 

Continuing Operations

 
 

GAAP

 
 

Acquisition-

Related

Adjustments (1)

 
 

Retirement-

Related

Adjustments (2)

 
 

Tax

Reform

Impacts (3)

 
 

Operating

(Non-GAAP)

 

Gross Profit

$     25,112

 
 

$                         533

 
 

$                                  —

 
 

$                   —

 
 

$         25,645

 

Gross Profit Margin

55.6

%

 

1.2

pts

 

—

pts

 

—

pts

 

56.7

%

S,G&A

$     14,823

 
 

$                       (854)

 
 

$                                  —

 
 

$                   —

 
 

$         13,969

 

Other (Income) & Expense

1,694

 
 

(68)

 
 

(2,991)

 
 

—

 
 

(1,364)

 

Total Expense & Other (Income)

22,621

 
 

(922)

 
 

(2,991)

 
 

—

 
 

18,709

 

Pre-tax Income/(Loss) from Continuing Operations

2,491

 
 

1,454

 
 

2,991

 
 

—

 
 

6,936

 

Pre-tax Income Margin from Continuing Operations

5.5

%

 

3.2

pts

 

6.6

pts

 

—

pts

 

15.3

%

Provision for/(Benefit from) Income Taxes (4)

$        (597)

 
 

$                         374

 
 

$                               731

 
 

$                434

 
 

$              942

 

Effective Tax Rate

(24.0)

%

 

10.4

pts

 

20.9

pts

 

6.3

pts

 

13.6

%

Income/(Loss) from Continuing Operations

$      3,088

 
 

$                      1,081

 
 

$                            2,259

 
 

$               (434)

 
 

$           5,994

 

Income Margin from Continuing Operations

6.8

%

 

2.4

pts

 

5.0

pts

 

(1.0)

pts

 

13.3

%

Diluted Earnings/(Loss) Per Share: Continuing

Operations

$        3.30

 
 

$                        1.16

 
 

$                              2.42

 
 

$              (0.46)

 
 

$             6.41

 
 
 
 
 

Nine Months Ended September 30, 2023

 
 

Continuing Operations

 
 

GAAP

 
 

Acquisition-

Related

Adjustments (1)

 
 

Retirement-

Related

Adjustments (2)

 
 

Tax

Reform

Impacts

 
 

Operating

(Non-GAAP)

 

Gross Profit

$     24,033

 
 

$                         460

 
 

$                                  —

 
 

$                   —

 
 

$         24,492

 

Gross Profit Margin

54.0

%

 

1.0

pts

 

—

pts

 

—

pts

 

55.1

%

S,G&A

$     14,212

 
 

$                       (768)

 
 

$                                  —

 
 

$                   —

 
 

$         13,444

 

Other (Income) & Expense

(721)

 
 

(2)

 
 

16

 
 

—

 
 

(707)

 

Total Expense & Other (Income)

19,102

 
 

(770)

 
 

16

 
 

—

 
 

18,348

 

Pre-tax Income from Continuing Operations

4,931

 
 

1,229

 
 

(16)

 
 

—

 
 

6,144

 

Pre-tax Income Margin from Continuing

Operations

11.1

%

 

2.8

pts

 

0.0

pts

 

—

pts

 

13.8

%

Provision for/(Benefit from) Income Taxes (4)

$          702

 
 

$                         277

 
 

$                                (27)

 
 

$                 (91)

 
 

$              861

 

Effective Tax Rate

14.2

%

 

1.7

pts

 

(0.4)

pts

 

(1.5)

pts

 

14.0

%

Income from Continuing Operations

$       4,229

 
 

$                         953

 
 

$                                  11

 
 

$                  91

 
 

$           5,283

 

Income Margin from Continuing Operations

9.5

%

 

2.1

pts

 

0.0

pts

 

0.2

pts

 

11.9

%

Diluted Earnings Per Share: Continuing

Operations

$         4.59

 
 

$                        1.04

 
 

$                              0.01

 
 

$               0.10

 
 

$             5.74

 

____________________

(1)    Includes amortization of purchased intangible assets, in process R&D, transaction costs, applicable restructuring and related expenses, tax charges related to acquisition integration and pre-closing charges, such as financing costs. 2024 also includes a loss of $68 million on foreign exchange derivative contracts entered into by the company prior to the acquisition of StreamSets and webMethods from Software AG.

(2)    Includes amortization of prior service costs, interest cost, expected return on plan assets, amortized actuarial gains/losses, the impacts of any plan curtailments/settlements and pension insolvency costs and other costs. 2024 also includes the impact of a one-time, non-cash, pre-tax pension settlement charge of  $2.7 billion ($2.0 billion net of tax).

(3)   2024 includes a net benefit from discrete tax events.

(4)   Tax impact on operating (non-GAAP) pre-tax income from continuing operations is calculated under the same accounting principles applied to the As Reported pre-tax income under ASC 740, which employs an annual effective tax rate method to the results.

   

INTERNATIONAL BUSINESS MACHINES CORPORATION

GAAP OPERATING CASH FLOW TO ADJUSTED EBITDA RECONCILIATION

(Unaudited)

 
 
 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

(Dollars in Billions)

 

2024

 

2023

 

2024

 

2023

Net Cash Provided by Operating Activities

 

$           2.9

 

$             3.1

 

$           9.1

 

$           9.5

 
 
 
 
 
 
 
 
 

Add:

 
 
 
 
 
 
 
 

Net interest expense

 

0.3

 

0.3

 

0.7

 

0.7

Provision for/(Benefit from) income taxes from continuing operations

 

(0.5)

 

0.2

 

(0.6)

 

0.7

 
 
 
 
 
 
 
 
 

Less change in:

 
 
 
 
 
 
 
 

Financing receivables

 

0.9

 

1.1

 

1.8

 

3.1

Other assets and liabilities/other, net (1)

 

(2.0)

 

(1.2)

 

(3.5)

 

(2.3)

 
 
 
 
 
 
 
 
 

Adjusted EBITDA

 

$           3.8

 

$             3.5

 

$        10.8

 

$        10.1

____________________

(1)    Other assets and liabilities/other, net mainly consists of operating assets and liabilities/Other, net in the Cash Flow chart, workforce 

         rebalancing charges, non-operating impacts and corporate (gains) and charges. 

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/ibm-releases-third-quarter-results-302285120.html

SOURCE IBM

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Technology

Skymizer and MiTAC Computing to Showcase a 2.8-Trillion-Parameter AI Model Running on a Single Air-Cooled Server at SC26

Published

30 minutes ago

on

November 5, 2026

By

2 TB card-memory configuration is designed to fit Kimi K3 within one server for enterprise on-premises deployment

TAIPEI, Nov. 5, 2026 /PRNewswire/ — Skymizer and MiTAC Computing today announced a joint showcase at SC26 featuring Moonshot AI’s Kimi K3—a 2.8-trillion-parameter mixture-of-experts model—running on a single MiTAC server equipped with eight Skymizer HTX301 LPU cards and 2 TB of card-attached memory.

Kimi K3 uses native MXFP4 (quantization-aware trained) weights. The 2 TB memory capacity is designed to accommodate the approximately 1.56 TB weight set while leaving capacity for KV cache. Final memory allocation and supported workloads remain subject to engineering validation.

Skymizer will also participate in ICCAD-Expo 2026 in Beijing on November 19–20 with local partners, bringing the same HTX301 product announcement to audiences in China. Together, the SC26 announcement in Chicago and participation in Beijing give the product announcement a global reach, connecting with enterprise AI customers and partners in both markets.

From COMPUTEX to a larger model platform

The platform builds on Skymizer’s demonstration of Qwen3-VL-30B-A3B, a 30-billion-parameter multimodal MoE model, at COMPUTEX 2026 on June 2–5.

“At COMPUTEX, we demonstrated Qwen3-VL-30B-A3B on our evaluation hardware,” said Luba Tang, Chief Technology Officer of Skymizer. “Our team is currently successfully extending that work to a single-server configuration designed for Kimi K3. LISA™ provides a common instruction set and toolchain as we develop the memory-residency and scheduling capabilities required for larger models.”

“Enterprises want greater control over the models, data, and infrastructure behind their AI services,” said William Wei, Chief Marketing Officer of Skymizer. “Our work with MiTAC aims to make larger open-weight models more practical to deploy on premises. Workload validation remains essential to assessing power, cost, and deployment requirements.”

“At SC26, MiTAC Computing is showcasing scalable, full-stack AI infrastructure solutions designed to support evolving AI workloads. Our collaboration with Skymizer explores Prefill–Decode disaggregation and optimized AI inference deployment across diverse workloads. By combining MiTAC’s server engineering expertise and scalable infrastructure platforms with Skymizer’s inference technologies, we aim to provide customers with greater flexibility and efficiency in AI deployment,” said a MiTAC spokesperson.

Built for enterprise on-premises deployment

For enterprises seeking to operate AI within their own infrastructure, fitting a large open-weight model within one air-cooled server offers a practical direction for deployment. Skymizer’s capacity-first cards and decode-optimized architecture are designed to support that goal while allowing enterprises to retain control over their models, private data, and AI operations. Deployment still requires careful matching of memory, compute, power, and cooling to the workload. The approach targets enterprise needs in financial services, healthcare, government, manufacturing, and semiconductor design, where data governance and operational control are central to adoption.

AI-assisted delivery for enterprise deployment

Bringing ultra-large models on premises also requires a practical path from hardware to a working service. Skymizer is developing an AI-assisted delivery approach to help enterprises select models for their workloads, prepare the software environment, install and configure the inference stack, and validate the deployment before use. The aim is to make these steps more consistent and repeatable while keeping model, data, and deployment decisions under enterprise control.

The approach is designed around shared deployment tools that different AI assistants can use, rather than dependence on a single agent or service. Over time, Skymizer plans to extend this assistance to ongoing operations and maintenance, helping teams diagnose issues and manage updates while retaining human oversight and approval. This work supports Skymizer’s “Own Your Intelligence” direction by addressing how enterprises deploy and maintain the AI systems they choose to own.

Availability

HTX301 chip production is expected to begin in Q1 2027. Development and validation of the server platform are ongoing. Sampling and broader commercial availability will be announced separately as integration and validation progress. Further information: skymizer.ai/events/sc26 

About MiTAC Computing Technology Corp.

MiTAC Computing Technology Corp., a subsidiary of MiTAC Holdings, delivers comprehensive, energy-efficient server solutions backed by industry expertise dating back to the 1990s. Specializing in AI, HPC, cloud, and edge computing, MiTAC Computing employs rigorous methodologies to ensure uncompromising quality — across barebones, systems, racks, and cluster levels — fully achieving performance and integration.

About Skymizer

Founded in 2013, Skymizer Taiwan Inc. develops purpose-built Language Processing Unit (LPU) IP and silicon for on-premises and on-device LLM inference. Its HyperThought™ platform pairs compiler-driven software with transformer-optimized hardware, and its LISA™ (Language Instruction Set Architecture) scales a single toolchain from 4-billion-parameter models to the trillion-parameter class. The HTX301-4S card has an approximately 155W card-level power figure; workload-specific and whole-system power remain subject to engineering validation. Multi-card systems are designed to support larger model-memory requirements while enabling enterprises to retain control of models, data, and deployment. Learn more at skymizer.ai.

HyperThought™ and LISA™ are trademarks of Skymizer Taiwan Inc. All other trademarks are the property of their respective owners.

 

View original content:https://www.prnewswire.com/news-releases/skymizer-and-mitac-computing-to-showcase-a-2-8-trillion-parameter-ai-model-running-on-a-single-air-cooled-server-at-sc26–302929328.html

SOURCE Skymizer Taiwan Inc.

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Technology

Everee Expands Payroll Infrastructure to Power Complete Embedded Payroll Experiences

Published

31 minutes ago

on

November 5, 2026

By

New APIs enable software platforms to bring company payroll management and worker experiences into their own products, while Everee handles payroll processing, payments, taxes and compliance behind the scenes

SALT LAKE CITY, Nov. 5, 2026 /PRNewswire/ — Everee, a payroll technology company specializing in flexible payroll and payments, today announced a major expansion of its Payroll Infrastructure offering, giving software platforms the ability to build and deliver a complete embedded payroll experience directly within their products.

With the introduction of company-level payroll APIs, Everee is extending its existing worker-facing capabilities to support the administrative side of payroll. Software platforms can now integrate company onboarding, payroll configuration, worker management, deductions and financial reporting into their own applications, creating a unified experience for the businesses and workers they serve.

The expansion enables platforms to offer payroll as a native part of their software rather than requiring customers to manage payroll through a separate provider or application. Everee powers the underlying payroll engine and handles payroll calculations, payments, tax filings and operational support.

“Software platforms want to own the customer experience, but building and operating payroll from scratch is incredibly complex,” said Brett Barlow, CEO at Everee. “With this expansion, we’re removing that barrier. Our partners can build payroll directly into their products, control the experience from end to end, and leave the complexity of running payroll to us. We’re giving software companies the infrastructure to offer a complete payroll product without having to become payroll operators.”

Bringing the Entire Payroll Experience Into One Platform

Everee’s Payroll Infrastructure has enabled software companies to integrate worker-facing payroll functionality, including employee onboarding, direct deposit, pay history, pay stubs and tax documents.

The expanded APIs now extend that functionality to company-level payroll administration, enabling platforms to build experiences that support:

Company onboarding: Create and onboard employer customers, collect required information and manage onboarding workflows.Payroll configuration: Set up work locations, payroll calendars, approval groups, cost centers and pay codes.Worker management: Create and maintain worker records, payroll settings, deductions and leave policies.Payroll data and reporting: Access payment information, payroll costs, payroll journals and financial reports.Payroll execution: Submit hours and pay items and manage payroll runs through an API, with the new Run Payroll API scheduled for release in November.

Together with Everee’s existing worker-facing APIs, these capabilities give software platforms greater control over how payroll is delivered within their products.

Everee handles the underlying payroll calculations, payments, tax filings and related operations, allowing partners to focus on building differentiated software experiences and serving their customers.

Built for Software Platforms That Want to Own the Experience, Not the Complexity

The expanded offering is designed for vertical software providers and workforce technology platforms, including those serving staffing, healthcare, hospitality, workforce management and other industries where payroll is closely connected to day-to-day operations.

By embedding payroll directly into their applications, these platforms can bring workforce management and payroll workflows together, reducing the need for customers to switch between disconnected systems.

Everee’s infrastructure supports payroll for W-2 employees and 1099 contractors, including flexible and same-day payment capabilities that help platforms serve businesses with dynamic workforce needs.

Unlike a traditional payroll integration that directs customers to a separate application, Everee’s API-driven approach allows partners to design and control their own payroll experience while relying on Everee for the underlying technology and operational expertise.

Accelerating Development With AI-Ready Integration Tools

Alongside the expanded payroll APIs, Everee has introduced a redesigned developer experience built to support AI-assisted software development.

The new Payroll Infrastructure guide includes machine-readable documentation, structured implementation instructions and agent-ready resources designed for use with AI coding tools.

Developers can direct compatible coding agents to Everee’s documentation to help navigate integration workflows, configure sandbox environments and implement payroll functionality within their applications.

The approach is designed to simplify the integration process and help software teams move from development to implementation with greater efficiency.

“AI is fundamentally changing how software gets built, and we believe integrating payroll infrastructure should be no exception,” said Piers Mainwaring, Co-founder and CIO of Everee. “We’ve designed our developer experience so AI coding agents can guide partners through the integration process, from initial setup to implementation. Instead of navigating complex documentation and building everything from scratch, developers can use AI to accelerate development and bring embedded payroll capabilities to market faster.”

Everee’s expanded company-level payroll APIs are available to partners now. Software platforms interested in building embedded payroll experiences can learn more about Everee Payroll Infrastructure, explore the developer documentation and request sandbox access at everee.com/technology.

About Everee

Everee is a payroll technology company making it easier for businesses and software platforms to pay workers with greater speed and flexibility. Through its payroll solutions and embedded payroll infrastructure, Everee helps organizations simplify payroll operations, support dynamic workforces and deliver modern payment experiences. Everee’s technology supports flexible pay schedules, instant payment capabilities and payroll solutions for W-2 employees and 1099 contractors.

Learn more at everee.com.

Media Contact

Dana Gagnon, CCO
dana.gagnon@everee.com 

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SOURCE Everee

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Innatera Rolls Out Neuromorphic Developer Program with New Portal and Evaluation Hardware on DigiKey

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31 minutes ago

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November 5, 2026

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Developers gain access to the hardware, software, and technical support to build innovative neuromorphic AI applications

DELFT, Netherlands, Nov. 5, 2026 /PRNewswire/ — Innatera, the leader in neuromorphic compute, today announced the rollout of its Developer Program, bringing together a new Developer Portal and Pulsar evaluation hardware available through DigiKey. Hardware is now available through DigiKey in the European Union, with availability expected to expand to additional countries by the end of 2026. Building on its previously announced program, the launch gives engineers, researchers, and hobbyists the tools and resources to develop, test, and deploy neuromorphic AI applications.

The program supports development with Pulsar, Innatera’s latest Spiking Neural Processor, which brings ultra-low-power intelligence directly to where sensor data is captured. Applications include human presence detection, keyword spotting, audio scene classification, and predictive maintenance across consumer and industrial devices.

“Neuromorphic computing will advance through what developers build with it,” says Sumeet Kumar, CEO of Innatera. “Our responsibility is to put this technology into their hands with tools they can use confidently. By bringing evaluation hardware together with familiar software workflows, technical guidance, and a developer community, we’re helping more engineers move from experimentation to applications that solve real-world challenges.”

The Developer Portal serves as the program’s central hub for software, documentation, application examples, community discussion, and support. It provides access to the Innatera SDK, comprising two complementary components: Talamo for AI application development and compilation, and Spine for embedded development and execution on Pulsar.

Using Talamo’s Python-based workflow and PyTorch integration, developers can build sensor-processing pipelines, train neural networks, and simulate applications before deploying them to hardware. Talamo’s application compiler translates these pipelines into embedded applications, while Spine provides the embedded toolchain and firmware needed to run them on Pulsar. Together, they streamline the path from model development to on-device evaluation.

Alongside the portal, developers in the European Union can purchase Pulsar evaluation hardware through DigiKey. Availability to other countries will be expanded in phases. The hardware combines two complementary boards:

IgnisCore is the processing module, featuring Pulsar alongside USB connectivity for programming and debugging, onboard memory, and circuitry for monitoring processor power consumption.SensForge connects to IgnisCore to add microphones, radar, motion and temperature sensors, Bluetooth Low Energy connectivity, and expansion interfaces, supporting prototyping with real sensor inputs.

Together, the boards allow developers to explore Pulsar’s capabilities, evaluate applications using acoustic and motion data, and assess power consumption as they develop their designs. For researchers and academic teams, this provides a platform to move beyond simulation and run and evaluate their own applications on physical neuromorphic hardware.

Developers can register at developer.innatera.com to access the Innatera SDK and supporting resources, and purchase Pulsar evaluation hardware through DigiKey at https://www.digikey.de/en/supplier-centers/innatera, subject to regional availability.

About Innatera
Innatera enables the world’s sensor data to be processed as soon as it is captured, directly at the source. Incorporated in 2018 as a spin-off from the Delft University of Technology, it develops a line of neuromorphic processors that mimic the mechanisms the brain uses for processing sensory data. Using a radically new computing architecture that is massively more efficient than conventional technologies, its chips enable breakthrough physical AI capabilities even in devices powered by small batteries. Innatera’s technology makes intelligence pervasive for a smarter, safer, and cleaner world.

Innatera has raised EUR 55m in funding from leading European deep-tech investors, and with its remarkable capital efficiency, aims to bring intelligence to a billion sensors by 2030.

For more information, visit www.innatera.com.

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Cosmin Balan
Marketing Manager
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212-481-3456

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