in a cnbc exclusive we are joined by ibm's cfo martin schroeder. good to see you again. let's just start with the story for ibm at the moment and it appears to be still one where you're trying to grow the new parts of the business while shrinking the old parts. would you say that the fourth quarter was a step forward in that process? >> good afternoon, kelly, thanks for the opportunity. boy, we're pleased with the progress in the transformation of ibm. when we look at the full year, for instance, our focus has been on growing our strategic imperatives which for the full year we are $29 billion in total growing 27% for the year on a very substantial base and now represent 35% of ibm. so very good progress in the areas we've been focusing on for the year we also had good margin growth again, part of our model and we had good cash flow and we were able to return three quarts -- three-quarters of that to our shareholders and keep our risk research and development streams going as well. so we are very please wds the progress. >> there are some looking at your tax rate and say

big blue cfo martin schroeder did speak up with us on "closing bell" yesterday. he said strategic businesses like the cloud and analytics have grown to more than a third of the company's revenue. take a listen. >> in our cloud business, which again was 10 billion last year, we have a number of approaches to this marketplace. clearly, we have a very strong infrastructure as a service offering. and when we look across the service offerings, we finished 2015. and that's across both the infrastructure as a service. the platform as a service, and our software as a service offering. >> that said, they get on the call. that earnings guidance came way down. you can see the shares now down 5%. they had that earnings beat. >> let's send it over to bertha coombs. what's going on there. >> it's been quite the roller coaster ride today. the nasdaq has been down now 12 of the last 14 sessions. last time it had such a bad downward move was back in 2009, and it took about 16 seconds overall for the nasdaq to bottom. take a look at this reversal here as we're moving towards the c