“So to be clear, we expect a strong year-to-year growth in zSystems.”

In context

“t SKU. Now after a solid start to the year, our view hasn't changed, and we still see 60% of the full year profit in the second half. Looking at the third quarter, we expect all in constant currency revenue growth in the high single-digit range and about a 2-point year-to-year improvement in operating pretax margin. I want to mention 2 specific items on the third quarter. First, at current spot rates, currency translation has increased to about an 8-point headwind to revenue growth, impacting our reported revenue, profit and cash. Second, we haven't had a zSystems product introduction in our large transactional second quarter in about 20 years. This unique timing, coupled with the strong start to the cycle, will result in a larger second to third quarter impact than typical seasonality. So to be clear, we expect a strong year-to-year growth in zSystems. In closing, these are interesting times, and we see technology as a way to help our enterprise clients capture today's opportunities and navigate challenges. We feel good about the strategy we are executing and the fundamentals of our business. Patricia, now let's go on to the Q&A. Patricia Murphy: Thank you, Jim. Before we begin the Q&A, I'd like to mention a couple of items. First, supplemental information is provided at the end of the presentation. And then second, as always, I'd ask you to refrain from multipart questions. Operator, let's please open it up for questions. Operator: [Operator Instructions] Our first question will come from Erik Woodring with Morgan Stanley. Erik Woodring: Just one for me here. Obviously, we saw a bit of a deceleration in the Red Hat business. So”