I.B.M. net rises 9.2% in quarter; analysts surprised but say competitive pressures will rise

Article Abstract:

IBM shows surprising strength across product lines and outpaces industry expectations, reporting a 9.2 percent rise in 1st qtr net income on an 11.4 percent revenue gain. But there are concerns among some analysts that the company might face increasing pressures later in 1990 when mainframe business competitors introduce new models. Moreover, some observers caution that the quarter should not be seen in isolation, noting that there were delays last fall involving disk drives, and there were problems with 3090 mainframes in the 1st qtr of 1990. Nevertheless, IBM is doing well. For the 1st qtr ended Mar 31, 1990, the company earned $1.04 billion, or $1.81 a share, compared with $950 million, or $1.61 a share, in the same quarter a year earlier. Revenue rose to $14.19 billion, from $12.73 for the 1989 period.

Outlook, First Quarter

---

I.B.M. surprises Wall Street with strong quarterly net

Article Abstract:

IBM has reported unexpected profits due to strong sales of its RS/6000 workstations, AS/400 minicomputers and data storage devices. The air-cooled models of its newly-announced ES/9000 mainframe computer have been sold out. The decreased value of the dollar has also helped with earnings increases, and sales in Europe continued to increase. IBM's shares jumped up with news of the earnings report. Stock analysts had previously decreased IBM's earnings estimates because of a slowing U.S. economy and stalling European market. Industry analysts believe that the increased earnings reported by IBM, Apple Computer Inc and DEC signal future vigorous competition within the computer market which will shake out smaller manufacturers.

Statistics, Mainframe computers, Industry Analysis, Mainframe Computer, Competition, Demand, Fourth Quarter

---

Similar abstracts:

• Abstracts: Royal Aviation third-quarter revenue helped by tour alliance. Maple Leaf reports strong recovery in first quarter
• Abstracts: Nortel shares not out of woods, analysts say. Nortel reissuing stock options. RRSP impact: Nortel nose-dive may mar equity fund sales
• Abstracts: I.B.M. shows library for data storage. I.B.M. says it will delay new product. I.B.M. data will speed programs
• Abstracts: Japan denies chip pact has failed: says U.S. companies need to try harder. Costs may be too high for all-American chips
• Abstracts: A.T.& T. forming alliances for wireless computing. State Dept. contract gives Wang a boost. AT&T's computer contract

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.