IBM posts loss of $285 million for first period: mainframe sales plunged; firm doesn't expect a quick turnaround

Article Abstract:

IBM posts a 1st qtr FY 1993 loss of $285 million, or 50 cents per share, down dramatically from a profit of $2.54 billion, or $4.45 per share, in 1st qtr FY 1992. Revenue dropped 7 percent from $14.04 billion to $13.06 billion. Still, IBM's stock rose $1.375 to $50.625 on Apr 20, 1993, as investors were relieved that the loss was not greater. Sales of IBM's flagship mainframe-computer line fell by more than 10 percent, as did minicomputer sales, while sales of workstations, personal computers and services were all sharply up. However, mainframes and minicomputers provide the company's biggest profit margins, while the ascendant sectors provide the tightest profit margins. For the time being, many investors are waiting for new IBM Chmn Louis V. Gerstner Jr. to unveil his turnaround plans. Many expect those plans to include aggressive reductions in IBM's workforce.

Prepackaged software, Finance, Financial Report, Losses, First Quarter

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France chooses IBM to bolster Groupe Bull; technology pact is victory for IBM, which beat Hewlett in the contest

Article Abstract:

The French government selects IBM as a partner for and investor in Compagnie des Machines Bull, also known as Groupe Bull. IBM was chosen over Hewlett-Packard. The new agreement calls for a sharing of technology: IBM will share reduced instruction set computing (RISC) technology with Bull and Bull will help IBM develop multiprocessing systems. IBM will sell portable computers made by Zenith Data Systems, which is a Bull subsidiary, and each company agrees to manufacture parts for the other. As part of the overall arrangement, IBM is expected to invest $100 million to $120 million, assuming a five- to ten percent stake in Bull.

Office machines, not elsewhere classified, France, IBM, Contracts, Investments, Compagnie des Machines Bull, Technology transfer, Cooperative Agreements

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