Feeds

PwC boosts IBM's coffers

Services up, hardware down

  • alert
  • submit to reddit

Remote control for virtualized desktops

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. ®

Intelligent flash storage arrays

More from The Register

next story
Bada-Bing! Mozilla flips Firefox to YAHOO! for search
Microsoft system will be the default for browser in US until 2020
NSA mass spying reform KILLED by US Senators
Democrats needed just TWO more votes to keep alive bill reining in some surveillance
Be real, Apple: In-app goodie grab games AREN'T FREE – EU
Cupertino stands down after Euro legal threats
'Cleantech' a dirty word for VCs? RUBBISH!
They just think the current schemes are terrible
prev story

Whitepapers

Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Top 5 reasons to deploy VMware with Tegile
Data demand and the rise of virtualization is challenging IT teams to deliver storage performance, scalability and capacity that can keep up, while maximizing efficiency.