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$IT said worldwide IT spending is projected to total $3.7 trillion in 2018, an increase of 4.5% from 2017. Enterprise software continues to exhibit strong growth, with worldwide software spending projected to grow 9.5% in 2018, and it will grow another 8.4% in 2019 to total $421Bil. The devices segment is expected to grow 5.6% in 2018.
$IT said worldwide PC shipments totaled 71.6MM units in 4Q17, down 2% from 4Q16. 2017 PC shipments surpassed 262.5MM units, down 2.8% from 2016. In the US, PC shipments surpassed 15.2MM units in 4Q17, down 8% YoY. PC shipments in EMEA were 21.8MM units in 4Q17, down 1.4% YoY.
$IT said global sales of smartphones to end-users totaled 383MM units in 3Q17, a 3% increase over the same period in 2016. All of the top five smartphone vendors achieved double-digit growth apart from Apple, which achieved a 5.7% increase. Samsung’s smartphone sales recorded a 19.3% increase in 3Q17.
For FY17, $IT expects total revenues to be $3.25-3.32Bil. Diluted loss per share is expected to be $0.85-0.65. Adjusted EPS is expected to be $3.39-3.50. Operating income is expected to be $14-39MM while CapEx is expected to be $115-125MM. $IT expects adjusted EBITDA in the range of $685-710MM. Operating cash flow is expected to be $335-345MM.
$IT reported a net loss of $48.2MM or $0.53 per share in 3Q17 compared to a net income of $30MM or $0.36 per share in 3Q16. Adjusted EPS was $0.65 per share in 3Q17. Total revenue was $828.1MM, an increase of 44% over 3Q16 as reported and up 43% on a foreign exchange neutral basis.
According to $IT, mobile phone sales are expected to return to year-over-year growth in 2018, with shipments totaling 1.9Bil units. Smartphones will represent 86% of total mobile phone shipments in 2018, up 6% from 2017. $IT expects $AAPL's iPhone X to be the sales driver in North America, China and Western Europe, despite its high price.
Worldwide shipments of PCs, tablets and smartphones are expected to exceed 2.35Bil units in 2018, an increase of 2% from 2017, according to $IT. Traditional PC shipments are forecast to decline 4.4% in 2018 while mobile phone shipments are expected to increase 2.4%.
$IT is evaluating strategic alternatives for its CEB Talent Assessment business, formerly SHL. The company is considering a range of strategic options, including a sale of the business. For the twelve month period ending June 30 2017, CEB Talent Assessment’s revenue represented about 6% of $IT and CEB combined adjusted revenue.
$IT said in 2Q17, worldwide server revenue increased 2.8% YoY, while shipments grew 2.4% from 2Q16. $HPE continued to lead in the worldwide server market based on revenue. Despite a decline of 9.4%, the company posted $3.2Bil in revenue for a total share of 23% for 2Q17. Dell EMC saw 7% growth and 19.9% market share.
$IT said worldwide spending on information security products and services will reach $86.4Bil in 2017, up 7% over 2016, with spending expected to grow to $93Bil in 2018. $IT forecasts fast growth in the security testing market due to continued data breaches and growing demands for application security testing as part of DevOps.
According to preliminary results by $IT, Worldwide PC shipments totaled 61.1MM units in 2Q17, a 4.3% decline from last year. Shipments in 2Q17 were the lowest quarter volume since 2007. $HPQ reclaimed the top position from Lenovo in the worldwide PC market in 2Q17, followed by $DELL and $AAPL succeeding in third and fourth place.
In 1Q17, $IT posted a 2.4% decline in preliminary worldwide PC shipments to 62.2MM units. In the U.S., PC shipments totaled 12.3MM units, down 2.4%. In the Asia/Pacific market, as PC shipments went down 0.8% to 22.8MM units for the quarter.
$IT completed its acquisition of $CEB for a total enterprise value of $3.3Bil. The deal completion follows the merger approval by CEB stockholders at a special meeting held on April 4, 2017, arrangement of financing, and receipt of all required regulatory approvals. With completion, $CEB stock will cease trading and no longer be listed on the NYSE.
$IT commenced an unregistered offering of $600MM of senior notes due 2025. $IT plans to use combination of proceeds, cash on hand and borrowings to fund cash consideration and other amounts payable in respect of its acquisition of CEB Inc., repayment and redemption of certain outstanding debt of CEB, and payment of related fees and expenses.