Intel Investors - IBM's Intel-Based Netfinity Server Business was STRONG this past quarter.
Sales of IBM's proprietary AS/400 and RS/6000 machines were DOWN !
"
In posting its fourth-quarter and year-end earnings, IBM, Armonk,
N.Y., said its sales of Netfinity servers out of the channel saw 100
percent growth, year over year.
"Netfinity showed increasing strength; sales out of the channel more
than doubled," said Douglas Maine, IBM's chief financial officer.
Maine said he believes IBM gained "a point" of market share during
the fourth quarter in its mobile, desktop and server lines, in large
part due to the increased efficiency and emphasis of the Advanced
Fulfillment Initiative--also known as channel assembly. "
The whole article i slisted below.
Paul
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crn.com
IBM: Channel PC Server Sales Doubled in 4Q
By Edward F. Moltzen
New York
6:56 PM EST Thurs., Jan. 21, 1999
..............
IBM Corp. continued to ship all of its commercial desktops in the
United States through its channel assembly program through the
fourth quarter of 1998 --and said channel sales of its servers
doubled.
In posting its fourth-quarter and year-end earnings, IBM, Armonk,
N.Y., said its sales of Netfinity servers out of the channel saw 100
percent growth, year over year.
"Netfinity showed increasing strength; sales out of the channel more
than doubled," said Douglas Maine, IBM's chief financial officer.
Maine said he believes IBM gained "a point" of market share during
the fourth quarter in its mobile, desktop and server lines, in large
part due to the increased efficiency and emphasis of the Advanced
Fulfillment Initiative--also known as channel assembly.
However, IBM's overall hardware business saw a 3.3 percent
decline, year over year, in the fourth quarter, in large part due to
plummeting DRAM prices that affected its microprocessor
business. Maine also said there were blips in IBM's AS/400 and
RS/6000 businesses, largely the result of delayed sales due to
product transitions.
IBM Global Services continued to be the top rainmaker for the
company. During the three months ended Dec. 31, IBM closed $9
billion in new service contracts and $33 billion in new signings for
the entire year of 1998. The company's backlog of service contracts
is now at a staggering $50 billion, according to Maine.
In software, the company's Lotus Development Corp. subsidiary
reported a total installed base of 34 million seats of Notes--its
groupware product and the centerpiece of the subsidiary.
Together, software and global services made up 60 percent of
IBM's $82 billion in sales for the fiscal year, Maine said.
Overall, IBM turned in sales of $25.1 billion for the fourth quarter of
1998, compared with $23.7 billion for the same quarter a year
earlier. On a per-share basis, IBM earned $2.47, compared with a
Wall Street consensus expectation of $2.44 and a year-ago profit of
$2.11.
As of year's end, IBM also maintained $5.8 billion in cash on its
balance sheet, even after paying down $1 billion in core debt.
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