The above graph represents the IBM operating expenses by quarter, starting from fiscal Q1 2005 to the recently completed quarter. The company’s total operating expenses (excluding cost of revenue) increased 29.4% YoY in Q1 2020, to $7,972 million. The growth was primarily driven by higher spending including Red Hat, higher amortization of acquired intangible assets associated with the Red Hat transaction, higher workforce rebalancing charges and higher non-operating retirement-related costs. IBM’s selling, general and administrative expenses increased a whopping 26.95% YoY in Q1 2020, to $5,955 million – representing 33.9% of the company’s total revenue.
|Source||IBM SEC Filings|
|Note||IBM fiscal year starts from January|
IBM’s research, development and engineering expenses also increased an impressive 13.4% YoY during the first quarter, amounting to $1,625 million. That’s over 9.2% of the company’s total revenue in Q1 2020.
IBM’s total intellectual property and custom development income increased 14.85% YoY in Q1 2020, driven by custom development income which grew 49.1% driven by new agreements.
IBM’s total other (income) and expense was expense of $182 million during the first quarter of 2020 compared to income of $73 million during first quarter of 2019.
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