Feeds

IBM evens the keel in Q2

No layoffs this time

  • alert
  • submit to reddit

Boost IT visibility and business value

IBM's workers may be safe for another 90 days after the company met its targets for its second quarter.

IBM's revenue for the period hit $22.3bn - a 4 per cent drop from the $23.1bn reported in the same quarter last year. IBM's net income proved more impressive, jumping to $1.82bn from $1.74bn in 2004. These income totals exclude a host of unusual charges, including a $1.1bn gain from IBM's sale of its PC business to Lenovo and a $775m settlement with Microsoft.

Stellar results? Hardly. They were, however, good enough to put some distance between Q2 and a lackluster Q1, which saw IBM fire thousands of workers.

"IBM returned to form in this quarter," said CEO Sam Palmisano. "This performance reinforces our confidence in our business model, and in our mission to apply unique, high-value skills and solutions to transform our clients' businesses."

Services helped drive IBM in the quarter, accounting for $12.0bn in revenue. That's a 6 per cent year-over-year rise. Hardware revenue, excluding PC sales, jumped 5 per cent to $5.0bn. IBM's lines of Unix and x86-based servers again performed well while mainframe sales fell 24 per cent.

Software sales increased 10 per cent to $3.8bn with DB2 and the WebSphere middleware doing most of the dirty work.

IBM's main rival HP is expected to steal the attention of investors and analysts tomorrow when it announces job cuts of its own. ®

Related stories

SCO moves to limit Smoking Gun Memo damage
Rambus reports record revenue
Apple profits, revenue up again
eBay runs on Sun's servers and IBM's URLs
Sun layoffs hit hundreds in US
IBM UK mainframe workers train their South African replacements

Boost IT visibility and business value

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
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.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
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.