IBM posts big rise in net for period, but sales were soft

Article Abstract:

IBM doubled profits in the 2nd qtr but generated fewer sales than expected. Net income for 2nd qtr 1995 reached $1.72 billion, up from 1994's $689 million 2nd qtr. Favorable exchange rates on foreign currency boosted revenue to $17.53 billion, a 14% increase over 1994's $15.35 billion. Without the favorable rates, revenue would only have reached $16.42 billion, a 7% increase over 1994. IBM had expected mainframe demand to decrease 15% in 1995, but now the company believes demand could stay the same as in 1994, although the units shipped could be new, lower-priced models. IBM dismissed a leaked internal memo that discussed IBM's mainframe inventory and implied that the market for mainframes was weakening. Software sales grew 13% to $3.1 billion, and hardware revenue grew 12.5% to $8.7 billion. The RS/6000 network server gave a strong showing as did the AS/400 workstation.

Electronic computers, Microcomputers, Computer industry, Finance, Company sales and earnings, Company Financial Information, Company Sales/Revenue

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Manzi quits at IBM and his many critics are not at all surprised; Lotus chief, tempestuous and quick to fire aides, leaves fast - and rich; life with 'Louie' Gerstner

Article Abstract:

Former Lotus Pres and CEO Jim Manzi lasted only 99 days under IBM's yoke before he announced his resignation on Oct 11, 1995. Manzi has a reputation in the software industry for cantankerous behavior. He has been known to publicly humiliate fired employees, change subordinates on whims and spend vast sums of Lotus money on foolhardy projects. Many analysts were surprised when Manzi agreed to become a senior vice president after IBM acquired Lotus. Manzi stayed on with Lotus because he thought that IBM would place him in charge of IBM's entire software division, a move that analysts say was unlikely. Manzi's abrasive personality did not fit with IBM's bureaucratic corporate culture, which led him to publicly criticize IBM for its slowness. Manzi leaves Lotus, and IBM, with the over $78 million he received on stock profits from the IBM acquisition.

Prepackaged software, Computer Software, Software Publishers, Officials and employees, Computer software industry, Software industry, Software, Appointments, resignations and dismissals, Lotus Development Corp., LOTS, Manzi, Jim P., Company Operations, Company Employee Status Change

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