| IBM delivered a strong second quarter and upped | | | | been down 7 percent adjusting for currency. |
| its earnings outlook for 2010. | | | | • Software pretax income expected to hit $8 |
| Big Blue on Thursday reported second quarter net | | | | billion for 2009. |
| income of $3.1 billion, IBM Laptop Battery or $2.32 | | | | • IBM inked 17 services deals worth more than |
| a share, up from $2.8 billion, or $1.97 a share, a | | | | $100 million. |
| year ago. Revenue was $23.3 billion, down 13 | | | | • By region, IBM said Americas revenue for |
| percent from a year ago. Wall Street was | | | | the second quarter was $9.9 billion, down 9 |
| expecting earnings of $2.02 a share on revenue | | | | percent. Europe, IBM 08K8192 Battery, Middle |
| of $23.58 billion. | | | | East and Africa sales were $7.9 billion, down 20 |
| The real story, however, was IBM's outlook. The | | | | percent. Asia-Pacific sales were down 7 percent |
| company projected earnings of $9.70 a share for | | | | to $4.9 billion. |
| 2009, well ahead of estimates of $9.15 a share. | | | | • Across verticals only the public sector held |
| IBM's previous guidance was for earnings of $9.20 | | | | up. |
| a share. On a conference call, IBM CFO Mark | | | | • The revenue tally by product line (note that |
| Loughridge said: "We have operating leverage | | | | hardware was crushed): |
| even when revenue is a headwind." | | | | In a nutshell, IBM's positioning in software and |
| Loughridge added that IBM is reloading for future | | | | services and away from hardware has been a |
| growth and investing in cloud computing and | | | | boon in the downturn. Loughridge noted that IBM's |
| business analytics. As usual, software and services | | | | decision to exit commodity products such as PCs |
| paced IBM (statement, presentation, and slides | | | | and printers has allowed it to transform its |
| (PDF)). | | | | business. In addition, IBM has acquired 100 |
| IBM has been aiming for earnings of $10 a share | | | | companies, including the likes of Cognos. |
| to $11 and is well on its way to hit that 2010 | | | | It was 20 years ago today: Not Sgt. Pepper, but |
| target, according to CEO Sam Palmisano. | | | | my PCjr |
| By the numbers: | | | | Everyone remembers their first computer. Well |
| • Gross profit margins were 45.5 percent | | | | mine was a PCjr and I don't care how history |
| compared to estimates of 44.05 percent.IBM | | | | remembers it. The piece of junk stole my heart. |
| 08K8192 Battery, IBM 92P1101 Battery, IBM | | | | I wouldn't push the analogy too hard, but your |
| 92P1089 Battery, "Rebalancing" the workforce | | | | first computer's a lot like your first love in one |
| and distributing work across the globe helped IBM | | | | respect: years later, the memory does not fade |
| improve margins, said Loughridge. | | | | with the passing of the seasons. |
| • Revenue for the second quarter would have | | | | |