IBM stays solid


17 Jul 200339 Views

Share on FacebookTweet about this on TwitterShare on LinkedInPin on PinterestShare on RedditEmail this to someone

Share on FacebookTweet about this on TwitterShare on LinkedInPin on PinterestShare on RedditEmail this to someone

‘Unspectacular but solid’ was Wall Street’s reaction to IBM’s second quarter 2003 results released yesterday afternoon. Big Blue’s performance was suggestive of a tentative market recovery rather than the full-blown return to growth for which investors had hoped.

IBM’s net income from continuing operations was US$1.73bn compared with US$445m in the second quarter of 2002. When exceptional charges are excluded, second-quarter 2003 income from continuing operations grew 11pc. Revenue rose to US$21.63bn in the quarter, a 10pc rise on the US$19.65bn of a year ago.

Sam Palmisano, IBM chairman and chief executive officer, said: “Once again, IBM delivered a solid quarter despite the challenging economic environment.”

The outperforming parts of IBM’s business included IBM Global Services, where revenue rose 23pc to US$10.6bn, aided by the addition of the former PwC Consulting business; small and medium-sized business solutions that were strengthened by a new line of ‘Express’ technologies aimed squarely at the needs of this fast growing customer base; and IBM eServers, particularly the xSeries systems and Unix-based IBM pSeries.

Support Silicon Republic

Regionally, the strongest growth came from Europe, Middle East & Africa (EMEA), where revenue shot up 23pc to US$6.9bn.

Generally good performance in servers and storage devices were tarnished by disappointing PC sales, which helped drag down Personal Systems Group revenues by 3pc to US$2.7bn.

By Brian Skelly