Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Arrow Hd. who wrote (4470)	1/21/1999 5:02:00 PM
From: wiley murray	Respond to of 8218

IBM 4Q beats Street Increases in Big Blue's service and software revenue sparks strong profit January 21, 1999: 4:42 p.m. ET IBM NEW YORK (CNNfn) - IBM Corp. Thursday reported fourth-quarter profit ahead of Wall Street estimates as the company posted strong gains in its services and software businesses. The Armonk, N.Y.-based technology giant logged a profit of $2.3 billion, or $2.47 a share, on revenue of $25.1 billion. Analysts expected IBM (IBM) to report a profit of $2.45 a share. In the year-ago quarter, IBM posted earnings of $2.1 billion, or $2.11 a share, on $23.7 billion in revenue. Louis Gertsner, IBM chairman and chief executive officer, said 60 percent of the company's gross profit came from global services and software. The company's service revenue grew 20 percent to $7.1 billion from year-ago results, while software revenue was up 9 percent to $4.1 billion, fueled in part by record shipments of Lotus Notes collaboration software. Gertsner noted, however, that the company faced continuing weakness in Latin American and Asian markets, as well as softness in memory chip prices. IBM's gross profit margin slipped to 39 percent compared with 40.1 percent in last-year's fourth quarter. For the full fiscal 1998 year, IBM reported a profit of $6.3 billion, or $6.57 a share, on $81.7 billion in revenue, compared with 1997 earnings of $6.1 billion, or $6.01 a share, on revenue of $78.5 billion. The company finished the year with $5.8 billion in cash assets. IBM shares climbed 2-1/2 to close at 197 in Thursday trade. home \| digitaljam \| contents \| search \| stock quotes \| help Copyright © 1999 CNN America, Inc. ALL RIGHTS RESERVED.

To: Arrow Hd. who wrote (4470)	1/21/1999 5:44:00 PM
From: Jules B. Garfunkel	Respond to of 8218

Congratulations Arrow for once again forecasting IBM's 4Q98 earnings to the penny... as posted here in your #4418. You were also right-on in predicting an increase in MIPs shipped. However, we see once again that IBM's Shareholder's Equity decreased 2 %, Cash on hand down 24 %, R & D reduced from last quarter, Hardware revenues down, Maintenance revs off, and while I have not calculated the net effect on earnings yet, it appears that a very significant part of IBM's increase in earnings vs. a year ago came from the buy back of some 50 Million shares of their stock outstanding, and a 3.6 % lower tax rate...now down to 28.9% So as I look back to my posts of two years ago, I see that almost all the items that I forecasted for IBM then, have come to pass....except IBM's market price. For this I congratulate you and the other long term IBM Investors on this thread. Regards, Jules