IBM, Apple report quarterly earnings

IBM today reported "disappointing" earnings for the first quarter of its fiscal year, saying they fell by 31 percent compared with the same period a year ago. The company reported diluted earnings of 68 cents per share, compared with the 98 cents per share it reported in the first quarter of 2001.

Net income was US$1.19 billion, off 32 percent from the $1.75 billion the company reported a year ago. Revenues for the period totaled $18.6 billion, a decrease of 12 percent compared with the first quarter of 2001.

The results, "while disappointing, were largely the result of the continued weak global business environment. As we indicated in our announcement last week, customers in every part of the world deferred technology purchases in the first quarter," said IBM president and CEO Samuel J. Palmisano in a statement released after the close of financial markets.

"These widespread deferrals hurt us across every one of our major business segments," he said. "While no one can predict the timing of a recovery, we remain optimistic that business conditions will improve later this year. Our customers are telling us that information technology remains critical to the success of their businesses. ... We remain confident about the fundamental strength of our business and about our prospects for the future."

The company reported a big drop in revenue from hardware sales, which were off 25 percent from a year ago, a decrease brought on by deferred IT spending at many companies. Revenues from IBM's zSeries mainframes declined, as did revenues from its pSeries, iSeries and storage products.

IBM officials blamed price pressures, product transitions and deferred purchases for the drop. PC revenues also fell, "reflecting continued weak industry demand," the company said.

Software revenues fell 1 percent to $2.9 billion, but revenue from middleware products -- which account for 80 percent of IBM's software revenues -- grew 6 percent, the company said.

Just last week, IBM had warned that a slowdown in customer spending for the quarter ended March 31 meant its earnings would come in below expectations.

Meanwhile, Apple Computer Inc.'s earnings for its second quarter ended March 30 met financial analysts' expectations, and the company posted a net profit of $40 million, or 11 cents per diluted share, for the quarter. That compared to a net profit of $43 million, or 12 cents per diluted share a year ago.

Revenues totaled $1.5 billion, up 4 percent from the year-ago quarter, and gross margins were 27.4 percent, compared to 26.9 percent a year ago. International sales accounted for 45 percent of the company's revenues, the company said.

In a statement, Apple touted the popularity of its redesigned iMac personal computer and said overall shipments of its computers were up 8 percent over a year ago, to 813,000.

"We've experienced incredible demand for the new flat-screen iMac and shipped 220,000 this quarter," said Apple CEO Steve Jobs. "Feedback from customers using them has been off the charts -- we've clearly got a winner here.

"Looking forward, we're making great progress on our transition to Mac OS X, we have some remarkable new products in development, and we plan to open an additional 20 Apple retail stores by the end of this calendar year," Jobs said.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Ken Mingis

Computerworld
Show Comments

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?