Feeds

IBM chip sales and margins static

Existing operations make up for divested ones

  • alert
  • submit to reddit

IBM Microelectronics performed as well as expected during its first quarter of fiscal 2003, showing flat revenue growth over the same period last year.

For the three months to 31 March, IBM's chip operation notched up sales of $5.8 billion, just a single percentage point below last year's $5.9 billion. It said the decrease was largely due to having quit certain "non-strategic businesses" over the last year. That suggests positive growth for the remaining operations, replacing all but one per cent of the revenue lost by exiting said non-strategic businesses.

IBM didn't say what all that means in terms of the unit's profitability (or otherwise), but it did note that gross margins increased year-on-year by a single percentage point to 26.6 per cent.

For the company as a whole, sales were up 11 per cent year-on-year, from $18 billion to $20.1 billion, leading to a increase in profitability of 16 per cent to £1.38 billion ($0.8 a share). ®

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
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.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
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.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.