I.B.M. earnings beat analysts' estimates; revenues from mainframes declined but software was up 9%

Article Abstract:

A 12% rise in earnings was reported yesterday by International Business Machines. Analysts estimates were exceeded by 2[cent] per share. The company reported the results were primarily attributable to gains in software and services. Earnings in its mainframe sales lagged. Shares rose $2.50 to $197 on the New York Stock Exchange, falling back to $190 in after hours trading. Reported earnings for the quarter were $2.35 billion or $2.47 per diluted share, up from $2.09 billion or $2.11 a share a year ago. Revenues grew this quarter to $25.13 billion from $23.72 billion in the fourth quarter of 1997, a gain of 6%. Hardware revenues dropped 2% to $11.3 billion and computer services revenues rose 20% to $7.1 billion. Software revenues were $4.1 billion, a 9% gain. Maintenance revenues dropped 3% to $1.5 billion. Revenues from rentals and financing rose to $1.1 billion, a gain of 10%. Gross profit margin was 39% compared to 40.1% a year ago. Earnings for the year were $6.33 billion or $6.57 a diluted share, a gain of 4% over last year from $6.09 billion or $6.01 a share.

Computer Services, Computer Systems Design and Related Services, Computer and Data Processing Services, Computer industry, Finance, Computer services industry, Information technology services industry, Information technology services, International Business Machines Corp., IBM

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Adobe sees 'Quark killer' putting new life in the company

Article Abstract:

InDesign, a page layout software program, is designed to work closely with 2 other Adobe products, Illustrator and Photoshop. It occupies 1.6 mb disk space, and uses plug-ins to execute major functions. This modular programming design will allow developers to readily customize the program. Adobe's plan is to thereby span the market for both desktop and mainframe publishing shops. InDesign lists for $699, and comes in Win 98, Win NT, and Mac versions. Adobe hopes that this product's feature set, and its compatibility with its 'market standard' graphics programs, will give it the edge to overcome Quark Express's dominance of the page-layout market.

Prepackaged software, Product information, Marketing, DTP software, Desktop publishing software, Adobe Systems Inc., ADBE, Product marketing strategy

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