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IBM Earnings Live Blog: Q1 Conference Call

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International Business Machines Corp. (NYSE: IBM) reports earnings Monday afternoon. The company's conference call is scheduled to begin at 4:30PM ET. Below is a live blog of the events.

05:33:35pm: The call has ended.

05:29:55pm: Schroeter on North American market: "We see a spending environment there that is supportive of the investments we're making."

05:26:26pm: "Our low-end of the guidance assumes that software doesn't approve for the rest of the year," said Schroeter. The high-end assumes software will improve and essentially become flat.

05:25:01pm: Schroeter expects a tax cash headwind in 2016.

05:23:19pm: Schroeter: "We had a very high cash tax rate last year relative to net income." Doesn't see that same level of headwind this year.

05:20:13pm: Mainframe plays a big role in the financial services sector, Schroeter noted.

05:15:40pm: Schroeter said IBM had a terrific Q1 in its mainframe business. He said the performance was what it was expected to be, not a surprise. "This is the mainframe performance we expected, pretty clearly," he said.

05:12:55pm: On currency, Schroeter said it was an impact of about eight points. He said there were some significant movements since January and since its investor day update. From a profit perspective, it's somewhat of an imprecise calculation.

05:07:18pm: Schroeter: "We created an Internet of Things group that will build on what we've done" in smart cities.

05:05:30pm: Schroeter on progress in the transformation: He's not expecting First, in terms of the strategic imperatives continuing 30 percent, we're not thinking this is 30 percent growth every quarter."

05:01:27pm: Schroeter: "We've made a number of bold moves" recently.

04:57:56pm: Schroeter reiterated that cash flow generation is skewed to the back-end of the year, but IBM reported $1.1 billion during the quarter.

04:54:24pm: Schroeter believes Watson Health will "change healthcare."

04:53:39pm: IBM's Internet of Things unit will have a cloud-based open platform to help clients.

04:49:47pm: IBM has returned to revenue growth in Europe.

04:48:22pm: IBM is increasing hiring in mobile and security businesses.

04:43:18pm: IBM had growth in Brazil and India, declines in China. But Schroeter insisted China is a profitable business.

04:41:47pm: IBM generated $1.1 billion in free cash flow during the quarter.

04:39:12pm: Schroeter said that IBM's results this quarter reflect the "transformation in our business."

04:38:51pm: Schroeter said the value of cloud is hybrid.

04:36:47pm: Martin Schroeter, Senior VP and CFO: "We continue to reinvent and innovate" to deliver value.

04:34:20pm: The call has begun.

04:29:01pm: IBM isn't moving much in after hours trading. At this moment the stock is down less than one percent.

04:05:46pm: IBM Reports Q1 EPS $2.91 Vs Est $2.86, Sales $19.59B Vs Est $19.86B

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