Close
  • Latest News
  • Cybersecurity
  • Big Data and Analytics
  • Cloud
  • Mobile
  • Networking
  • Storage
  • Applications
  • IT Management
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Menu
Search
  • Latest News
  • Cybersecurity
  • Big Data and Analytics
  • Cloud
  • Mobile
  • Networking
  • Storage
  • Applications
  • IT Management
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Applications
    • Applications

    IBM Scores with Software in Second Quarter

    By
    Stan Gibson
    -
    July 18, 2006
    Share
    Facebook
    Twitter
    Linkedin

      Led by strong software sales, particularly in Tivoli and WebSphere products, IBM posted solid second-quarter results that met earnings targets.

      Earnings were $1.30 per share, compared with $1.14 per share in the year-earlier second quarter, an increase of 14 percent. Second-quarter profit was $2 billion, compared with $1.9 billion in the second quarter of 2005, an increase of 9 percent. Without non-recurring items of 2005, the gain was 11 percent. Total revenues for the quarter were $21.9 billion.

      Services and hardware continued to be question marks, however.

      “Hardware and services didnt perform to our expectations,” said IBM Chief Financial Officer Mark Loughridge in the companys quarterly earnings call.

      Loughridge said IBM, based in Armonk, N.Y., is looking at plenty of services-contract opportunities in the third quarter, but the company will “have to execute” to realize that potential.

      /zimages/4/28571.gifClick here to read about where IBM stands in the global storage services market.

      Hardware results were hampered by IBM having fallen behind in shipments, in part due to a new hazardous materials law in Europe.

      /zimages/4/62652.jpgLoughridge pointed to productivity improvements as an underlying factor behind the results. Those measures include big investments in India and an ongoing layoff program.

      He also said sales to small and midsize businesses were stronger than those to enterprise customers. Sales in emerging markets such as Brazil, India and Russia were up, while sales in Japan and Germany were off, he said.

      “Given how low the expectations were, there was only one way for the stock to go, which was up,” said industry analyst Bob Djurdjevic, president of Annex Research, in Phoenix. He said the performance of IBMs zSeries mainframes, up 7 percent, year to year, was a pleasant surprise.

      However, IBM Global Services, despite a major reorganization in 2005, still has not turned the corner with robust performance, he noted. “The problem IBM Global Services has is its size,” he said, suggesting the unit needs to be split into smaller divisions.

      /zimages/4/28571.gifCheck out eWEEK.coms for the latest news, reviews and analysis about productivity and business solutions.

      Avatar
      Stan Gibson
      Stan Gibson is Executive Editor of eWEEK. In addition to taking part in Ziff Davis eSeminars and taking charge of special editorial projects, his columns and editorials appear regularly in both the print and online editions of eWEEK. He is chairman of eWEEK's Editorial Board, which received the 1999 Jesse H. Neal Award of the American Business Press. In ten years at eWEEK, Gibson has served eWEEK (formerly PC Week) as Executive Editor/eBiz Strategies, Deputy News Editor, Networking Editor, Assignment Editor and Department Editor. His Webcast program, 'Take Down,' appeared on Zcast.tv. He has appeared on many radio and television programs including TechTV, CNBC, PBS, WBZ-Boston, WEVD New York and New England Cable News. Gibson has appeared as keynoter at many conferences, including CAMP Expo, Society for Information Management, and the Technology Managers Forum. A 19-year veteran covering information technology, he was previously News Editor at Communications Week and was Software Editor and Systems Editor at Computerworld.

      MOST POPULAR ARTICLES

      Android

      Samsung Galaxy XCover Pro: Durability for Tough...

      Chris Preimesberger - December 5, 2020 0
      Have you ever dropped your phone, winced and felt the pain as it hit the sidewalk? Either the screen splintered like a windshield being...
      Read more
      Cloud

      Why Data Security Will Face Even Harsher...

      Chris Preimesberger - December 1, 2020 0
      Who would know more about details of the hacking process than an actual former career hacker? And who wants to understand all they can...
      Read more
      Cybersecurity

      How Veritas Is Shining a Light Into...

      eWEEK EDITORS - September 25, 2020 0
      Protecting data has always been one of the most important tasks in all of IT, yet as more companies become data companies at the...
      Read more
      Big Data and Analytics

      How NVIDIA A100 Station Brings Data Center...

      Zeus Kerravala - November 18, 2020 0
      There’s little debate that graphics processor unit manufacturer NVIDIA is the de facto standard when it comes to providing silicon to power machine learning...
      Read more
      Apple

      Why iPhone 12 Pro Makes Sense for...

      Wayne Rash - November 26, 2020 0
      If you’ve been watching the Apple commercials for the past three weeks, you already know what the company thinks will happen if you buy...
      Read more
      eWeek


      Contact Us | About | Sitemap

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Property of TechnologyAdvice.
      Terms of Service | Privacy Notice | Advertise | California - Do Not Sell My Information

      © 2021 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×