IBM Revenue Jumps
Fueled by services and software growth, IBM on Monday reported that revenue in the first quarter jumped 11.3 percent while income grew 8 percent.Fueled by services and software growth, IBM on Monday reported that revenue in the first quarter jumped 11.3 percent while income grew 8 percent. For the quarter ending March 31, the Armonk, N.Y., company earned $1.4 billion on revenue of $20.1 billion, both increases over the first quarter in 2002. The gains in services and software were offset by a 1.3 percent drop in hardware revenueto $5.8 billionparticularly in the eServer zSeries mainframe group, which saw about a 16 percent drop. However, John Joyce, senior vice president and chief financial officer, said in a conference call with analysts that much of that drop was the result of customers waiting for the next mainframe releasecode-named T Rexlater this quarter.
Revenue for IBMs Global Services group increased 23.6 percent, to more than $10.1 billiondriven in large part by the companys $3.5 billion acquisition last fall of PricewaterhouseCoopers consulting business, Joyce said.