Feeds

IBM evens the keel in Q2

No layoffs this time

  • alert
  • submit to reddit

Top 5 reasons to deploy VMware with Tegile

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

Beginner's guide to SSL certificates

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Special pleading against mass surveillance won't help anyone
Protecting journalists alone won't protect their sources
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Big Content Australia just blew a big hole in its credibility
AHEDA's research on average content prices did not expose methodology, so appears less than rigourous
EMC, HP blockbuster 'merger' shocker comes a cropper
Stand down, FTC... you can put your feet up for a bit
Vodafone to buy 140 Phones 4u stores from stricken retailer
887 jobs 'preserved' in the process, says administrator PwC
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
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.