I.B.M. earnings up a bit, despite hardware woes
Article Abstract:
IBM reported 2nd qtr 1998 earnings of $1.452 billion, or $1.50 a share, as gains from its computer services and software divisions covered steep losses in hardware sales. The income represents a four-tenths of a percent gain over the 2nd qtr 1997. A 5.4% increase in per-share earnings, which exceeded analysts's projections of $1.49 a share, resulted from IBM stock repurchases. IBM sales, meanwhile, remained a flat $18.8 billion. The continued Japanese recession contributed to IBM's 13% drop in sales of computers and other hardware to $7.5 billion. Sales also declined for the System 390, its top-of-the-line mainframe computer. Customers chose to wait for an improved model due in Aug 1998, while IBM had hoped customers would purchase the System 390 and then upgrade it. Revenue from the lucrative global services business surged 22% to $5.6 billion, or 30% of total revenue.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1998
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I.B.M. offers profit warning for quarter
Article Abstract:
IBM said its first qtr 1998 earnings would decline because of the rising dollar, an Asian sales decline and several one-time write-offs. The company also reported 4th qtr 1997 earnings of $2.1 billion, a 3.4% boost over the 4th qtr 1996's $2 billion. Per-share earnings jumped from $1.93 in the 4th qtr 1996 to $2.11 a share in the 4th qtr 1997, a 9.3% increase, as $7 billion in 1997 stock buybacks contributed largely to lowering the number of shares outstanding. Revenue improved by 3%, to $23.7 billion, but a constant exchange rate for the dollar would have raised revenue by 8% overall. IBM's 1st qtr 1998 earnings would drop by 10 cents to 15 cents a share from 1st qtr 1997 earnings of $1.16, according to Lawrence R. Ricciardi, acting CFO. The figures would amount to a drop of up to 17%, or nearly $200 million, from IBM's 1st qtr 1997 earnings of $1.2 billion.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1998
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Microsoft developing electronic cash card
Article Abstract:
Microsoft is developing an electronic cash system that will be based on a plastic card embedded with a microprocessor that stores money amounts and enables the user to make payments. The company would be entering a market that is expected to become increasingly crowded as a number of companies push to develop electronic currency technology. Mastercard and Visa are also developing card systems that will hold cash amounts and British banks are planning to begin testing of an electronic currency called Mondex, which will contain an electronically imprinted dollar value. Microsoft may have some problems in finding a partner for its development effort because of its aborted bid to acquire personal finance software company Intuit Inc. CEO Bill Gates also irritated many in the banking community when he referred to bankers as dinosaurs.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1995
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