I.B.M. stock falls despite strong profit; decrease helps cause 70-point drop in Dow

Article Abstract:

IBM reported earnings of $774 million for 1st qtr 1996, earning slightly more than analysts had forecast, but the company's stock falls after CFO G. Richard Thoman provides a cautious view of the future. IBM's earnings include $617 million in charges related to acquisitions and cost reductions, without which the company would have earned $1.4 billion, compared with the $1.3 billion earned in 1st qtr 1995. Revenues were up 5.2% to $16.6 billion. Hardware sales stayed level in the quarter, and Thoman forecasts that IBM would continue to find it hard to maintain the profit margin on mainframes and other hardware products. IBM's gross profit margin dropped to 40.9%, down from 42.4% in 1st qtr 1995. Software sales increased only 6% over previous-year sales, despite the addition of profits from acquisitions Lotus and Tivoli Systems. IBM's services business saw a 31% increase. The company increased its per-share dividend 10 cents, the first increase since 1993. Its stock closed down $10.25.

International Business Machines Corp., IBM, Beliefs, opinions and attitudes, Thoman, G. Richard

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Dell Computer reports earnings boom

Article Abstract:

Dell Computer announces 2nd qtr earning in 1995 double its 1994 2nd qtr earnings. Dell's earnings total $65.1 million, in comparison to the $28.6 million in made in 1994. Revenues reach a corresponding 52% increase at $1.21 billion, compared to 1994's $791.5 million. The profits are stronger than the market expected, with gross profit margins reaching 21.8% in the 2nd qtr after hitting 21.4% in the 1st qtr 1995. Dell has a backlog of orders due to a shortage of semiconductors. The strong demands translate to less pressure to lower prices. The market had feared that price competition would hurt profits, but Dell contends that recent price decrease by competitors such as IBM and Compaq merely represent lower prices for materials. Dell's own prices are increasing, driven by demand from savvy, corporate customers who want more features.

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Dell's quarterly profit is lifted by strong computer sales

Article Abstract:

Dell Computer Corp is reporting a strong increase in its 1st qtr earnings from the same quarter in the previous year. The increase is driven primarily by strong sales of Pentium-based notebook system in the domestic and international market. The positive financial results serve as evidence that Dell has completed its recovery after having a number of setbacks in the last year including a failed attempt to sell computers in the retail market and a failed series of notebook computers. Sales for the quarter increase 48% to $1.14 billion compared with $766.6 million in the 1994 quarter. Net income is $61.7 million or $1.11 per share compared with $18.9 million or $65 cents per share in 1994. Notebook computers made up 17% of Dell's total system revenues in the 1st qtr, up 14% from the previous quarter.

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