| Mainframe Sales, Strong Overseas Market Buoy IBM | | | | extremely well-received in the marketplace," |
| Earnings | | | | Loughridge said. "We entered the quarter with a strong |
| IBM (from: strong second-quarter earnings Thursday, | | | | deal pipeline, and this quarter, frankly, we were sold |
| beating analyst expectations and buoyed in part by | | | | out." |
| sales of its new high-end mainframe computer and | | | | System p sales also grew, by 29 percent over last |
| continued strong performance overseas. | | | | year. |
| Diluted earnings per share for the quarter were $1.98 | | | | It was a different story for IBM's other hardware lines, |
| on revenue of $26.8 billion, a 13 percent revenue | | | | however: System x sales fell by 5 percent, and |
| increase over last year, or 6 percent when adjusted | | | | System i by 47 percent. Loughridge associated that |
| for currency valuations. | | | | decline with IBM's ongoing efforts to move its legacy |
| Analysts polled by Thomson Financial had on average | | | | System i customer base to the newer Power |
| predicted $1.82 per share and $25.9 billion in revenue. | | | | platform. |
| Mark ?from? Loughridge, IBM's chief financial officer, | | | | Another weak spot was the Systems and |
| crowed over the results during a conference call | | | | Technology segment, which fell 3 percent when |
| Thursday. "This is one of the best quarters I've ever | | | | adjusted for currency, on $5.2 billion in revenue. |
| seen. ... These are truly powerful results," he said. | | | | Meanwhile, Global Technology Services revenue rose |
| Like that of its rivals Oracle and SAP, IBM's financial | | | | 8 percent on an adjusted basis to $10.1 billion; and |
| results are increasingly seen as a bellwether for the | | | | Global Business ?from? Services sales were up 9 |
| economy as the world goes through an economic | | | | percent to $5.1 billion. |
| slowdown. | | | | IBM raised its profit forecast for all of 2008 to at least |
| Sales in the Americas region stood at $10.9 billion, an | | | | $8.75 per share, up from $8.50. The company has a |
| increase of 6 percent when adjusted for currency | | | | 2010 target of $10 to $11 per share. |
| effects. Revenue from the Europe, Middle East and | | | | Without naming any potential target areas, Loughridge |
| Africa region was $9.8 billion, up 7 percent, and Asia | | | | suggested IBM is looking to make further acquisitions |
| Pacific revenue was $5.3 billion, a 6 percent jump, both | | | | even as it comes off large deals, such as its purchase |
| on a currency-adjusted basis. | | | | of BI (business intelligence) vendor Cognos. "At today's |
| IBM's System z mainframe sales grew by 32 percent | | | | prices there are some very attractive candidates out |
| over the previous year. System z "has been | | | | there," he said. |