Feeds

PwC boosts IBM's coffers

Services up, hardware down

  • alert
  • submit to reddit

Build a business case: developing custom apps

IBM's massive services business carried the company in its first fiscal quarter of 2003, off-setting losses in hardware sales.

IBM generated $1.4 billion in net earnings for the quarter, which is an 8 percent increase over the same period a year ago. This gain came on $20.1 billion in revenue -- an 11 percent rise year-on-year.

Global Services received a boost from the PwC acquisition and pulled in $10.2 billion in revenue, a 24 percent jump over the first quarter of 2002.

IBM's hardware business did not perform as well. Total hardware revenues fell 1 percent to $5.8 billion even though Intel and Unix server sales were up. The trusty-old mainframe business struggled and microelectronics revenue fell.

The software business pulled its weight in the quarter with revenues increasing 8 percent to $3.1 billion. WebSphere and DB2 were the big sellers.

Sales in the Americas were up 5 percent to $8.6 billion, EMEA rose 23 percent to $6.3 billion and AsiaPac rose 14 percent to $4.5 billion.

IBM has been on a buying binge with the PwC deal and the Rational Software acquisition, which was completed at the end of February. The plan is to ship software engineers and the services team with every piece of hardware leaving Big Blue's warehouse. This package keeps server and storage prices competitive while letting IBM take advantage of its real money makers.

This strategy looks much more successful in 2003 than it did last year when IBM's saw its first quarter revenue tumble 12 percent. In Q1 2002, the vaunted services business lost ground and the hardware business hemorrhaged cash.

But IBM put about 15,000 layoffs behind it since then, and is operating a leaner ship.

The Armonk brass expects the company to pull in $88 billion for the entire year. ®

Boost IT visibility and business value

More from The Register

next story
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Microsoft exits climate denier lobby group
ALEC will have to do without Redmond, it seems
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.