To: john who wrote (1622 ) 5/17/1999 9:57:00 AM From: Donald F. DeKold Respond to of 3243
Yeahsureyabetcha! IBM has as much interest in advertising on CY as the center of your last donut. Here is something that came out this morning that shed light on IBM. IBM = Internet Boom Maker Posted May 14, 1999 06:00 AM PDT ======================================================================= IBM announced first quarter financial results showing net income of $1.47 billion on revenues of $20.3 billion. These results compare with income of $2.35B on revenues of $25.1B last quarter and income of $1.04B on revenues of $17.6B one year ago in 1Q98. Year-over-year for the first quarter, earnings per share rose from $1.06 to $1.55 while profit margins increased from 5.9% to 7.2%. IBM has evolved from saying that it was becoming an Internet company to actually becoming one, and this is a big change for the former maker of Hollerith tabulating devices and typewriters. With about a quarter of last year's $82B in revenue coming from demand for e-business hardware, software, and services, IBM clearly gets the Web and continues to prove it. IBM Chairman Louis Gerstner even boasts that IBM generates more revenues and profits from the Internet than 25 of the world's top Web stocks combined. While these numbers are big and impressive, the real story here is the re-emergence of Big Blue, this time as a deep-pocketed, hard-charging Internet company at the cutting edge of the cyber-revolution. While Oracle got an earlier start in the ecommerce sphere because of its Unix orientation, IBM has come on like gangbusters with its worldwide service organization and second-generation turnkey products like Net.commerce. For example, software revenue was up 10% to $2.9B while global service revenue jumped 19% to $7.6B with almost $10B in new contracts lined up in Q1. For much of this service revenue, read this as "Setting up Intranet and Internet applications for their customers". Hardware revenues meanwhile rose 17% to $8.6B, and overall gross profit margin come in at 35.7%. Looking ahead, with a services contract backlog of about $55B plus today's release of version 3.0 of Net.Commerce for AS/400, the firm should be able to better support B2B and B2C ecommerce and make it easier for firms of all sizes to manage their virtual stores. Copyright © 1999 Zona Research, Inc. ======================================================================= Don donsden@aol.com Gainesville, Florida (pleasant 60 F mornings, 80 F afternoons) P.S. John, things are quite well down here in Florida. Daughter just completed her first year in college with a 4.0 while still a senior in high school. Mom and Dad very proud. Dad got a promotion at work. Have started picking my vine ripened tomatoes before the stink bugs hit. There are even no "love-bugs" this year to mess up the windshields. Brand new chicken flock (70 birds) doing well. Adolescent roosters are starting to crow. Not even one raccoon attack all spring. The dentist did say I needed two crowns. I'll specify gold, of course, to live up FIX's claim that I'm a "DeGold." Hope life is treating you well, too. By all means keep up the entertainment on the forums, John.