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Technology Stocks : IBM -- Ignore unavailable to you. Want to Upgrade?

To: J R KARY who wrote (3246)	6/9/1998 5:31:00 PM
From: j g cordes	Read Replies (2) \| Respond to of 8218

Hi Jim, IBM has indeed become very active in forecasting good news.. don't know what that means, but I did see the article you refer to. Re Europe "... their information technology requirements, was even healthier in Europe than in the United States." What does this mean for the US, Asian, S American and Japan? The other 75% of services revenue for the company? Don't think they're doing as well. "... In the first quarter of 1998 IBM Europe's services revenues rose 28 percent compared with the same period of the previous year.... Whether it's 28 percent or whether it's a little less I don't know but it certainly will be above 20 percent, that's for sure,'' Maerki said of revenues for the whole of 1998. So the first quarter European revenues were up 28%, but he doesn't expect the 2nd, 3rd, 4th quarters to be up as much year over year? In other words growth has slowed in Europe? "IBM Global Services revenues were $25.7 billion worldwide in 1997. Europe accounted for about one third of that, according to Maerki. Services account for about 25 percent of IBM's total revenue." So Europe is 1/3 of global services and services account for 25% of total revenue. That means European services are about 8.3% of total revenues.. in other words 8.3% of 100% grew faster in the first quarter but will slow down for the balance of the year. What did the other 91.7% of revenue grow at? The timing of this interview is classic.