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Empresas y finanzas

IBM Reports 2007 First-Quarter Results


    IBM (NYSE: IBM) today announced first-quarter 2007 diluted
    earnings of $1.21 per share from continuing operations, an increase of
    12 percent as reported, compared with diluted earnings of $1.08 per
    share in the first quarter of 2006. First-quarter income from
    continuing operations was $1.8 billion compared with $1.7 billion in
    the first quarter of 2006, an increase of 8 percent. Total revenues
    for the first quarter of 2007 of $22.0 billion increased 7 percent (4
    percent, adjusting for currency) from the first quarter of 2006.

    "IBM's good results in the quarter demonstrate the breadth of our
    global capabilities, the advantages of our business model and our
    focus on profitable growth," said Samuel J. Palmisano, IBM chairman,
    president and chief executive officer. "We continued to grow in the
    higher-value products and services that help our clients transform
    their businesses. We again grew gross profit margins and earnings, and
    continued to generate significant cash from operations. This gives us
    considerable financial capability to strengthen our position in the
    profitable growth segments and create further value for our
    investors."

    From a geographic perspective, the Americas first-quarter revenues
    were $9.1 billion, an increase of 1 percent as reported (1 percent,
    adjusting for currency) from the 2006 period. Revenues from
    Europe/Middle East/Africa were $7.6 billion, up 13 percent (5 percent,
    adjusting for currency). Asia-Pacific revenues increased 10 percent (9
    percent, adjusting for currency) to $4.5 billion. OEM revenues were
    $828 million, down 5 percent compared with the 2006 first quarter.

    Total Global Services revenues grew 8 percent (4 percent,
    adjusting for currency). Segment revenues from Global Business
    Services increased 9 percent (6 percent, adjusting for currency) to
    $4.2 billion, and segment revenues from Global Technology Services
    increased 7 percent (4 percent, adjusting for currency) to $8.3
    billion. IBM signed services contracts totaling $11.1 billion, down 2
    percent year over year, and ended the first quarter with an estimated
    services backlog, including Strategic Outsourcing, Business
    Transformation Outsourcing, Global Business Services, Integrated
    Technology Services and Maintenance, of $115 billion.

    Revenues from the Systems and Technology (S&T) segment totaled
    $4.5 billion for the quarter, up 2 percent (flat, adjusting for
    currency). S&T revenues from System z server products increased 12
    percent compared with the year-ago period. Total delivery of System z
    computing power, which is measured in MIPS (millions of instructions
    per second), increased 9 percent. Revenues from the System p UNIX
    server products increased 14 percent compared with the 2006 period.
    Revenues from the System x servers increased 7 percent, and revenues
    from the System i servers decreased 13 percent. Revenues from
    Microelectronics decreased 7 percent and revenues from System Storage
    decreased 1 percent.

    Revenues from the Software segment were $4.3 billion, an increase
    of 9 percent (5 percent, adjusting for currency) compared with the
    first quarter of 2006. Revenues from IBM's middleware products, which
    primarily include WebSphere, Information Management, Tivoli, Lotus and
    Rational products, were $3.2 billion, up 10 percent versus the first
    quarter of 2006. Operating systems revenues of $522 million were flat
    compared with the prior-year quarter. Revenues from other software and
    services increased, which includes the Product Lifecycle Management
    portfolio of products.

    For the WebSphere family of software products, which facilitate
    customers' ability to manage a wide variety of business processes
    using open standards to interconnect applications, data and operating
    systems, revenues increased 14 percent. Revenues for Information
    Management software, which enables clients to leverage information on
    demand, increased 20 percent. Revenues from Tivoli software,
    infrastructure software that enables customers to centrally manage
    networks including security and storage capability, increased 18
    percent, and revenues for Lotus software, which allows collaborating
    and messaging by customers in real-time communication and knowledge
    management, increased 7 percent year over year. Revenues from Rational
    software, integrated tools to improve the processes of software
    development, increased 15 percent compared with the year-ago quarter.

    Global Financing segment revenues increased 6 percent (3 percent,
    adjusting for currency) in the first quarter to $614 million.

    The company's total gross profit margin was 40.2 percent in the
    2007 first quarter compared with 39.1 percent in the 2006 period --
    the 11th consecutive quarter of year-to-year increase.

    Total expense and other income increased 11 percent to $6.3
    billion compared with the prior-year period. SG&A expense increased 11
    percent to $5.1 billion. RD&E expense increased 4 percent compared
    with the year-ago period. Intellectual property and custom development
    income decreased to $205 million compared with $229 million a year
    ago. Other (income) and expense contributed income of $180 million in
    the first quarter of 2007 versus income of $246 million in the first
    quarter of 2006.

    IBM's effective tax rate in the first-quarter 2007 was 28.5
    percent compared with 30.0 percent in the first quarter of 2006.

    Shares repurchased totaled approximately $3.5 billion in the first
    quarter. The weighted-average number of diluted common shares
    outstanding in the first-quarter 2007 was 1.52 billion compared with
    1.59 billion shares in the same period of 2006. As of March 31, 2007,
    there were 1.48 billion basic common shares outstanding.

    Debt, including Global Financing, totaled $23.9 billion, compared
    with $22.7 billion at year-end 2006. From a management segment view,
    the non-global financing debt-to-capitalization ratio was 2.8 percent
    at the end of March 31, 2007, and Global Financing debt increased $1.0
    billion from year-end 2006 to a total of $23.2 billion, resulting in a
    debt-to-equity ratio of 6.9 to 1.

    Forward-Looking and Cautionary Statements

    Except for the historical information and discussions contained
    herein, statements contained in this release may constitute
    forward-looking statements within the meaning of the Private
    Securities Litigation Reform Act of 1995. These statements involve a
    number of risks, uncertainties and other factors that could cause
    actual results to differ materially, including the company's failure
    to continue to develop and market new and innovative products and
    services and to keep pace with technological change; competitive
    pressures; failure to obtain or protect intellectual property rights;
    quarterly fluctuations in revenues and volatility of stock prices; the
    company's ability to attract and retain key personnel; adverse affects
    from tax matters; currency fluctuations and customer financing risks;
    customer credit risk on trade receivables; the company's failure to
    maintain the adequacy of its internal controls; the company's use of
    certain estimates and assumptions; dependence on certain suppliers;
    changes in the financial or business condition of the company's
    distributors or resellers; the company's ability to successfully
    manage acquisitions and alliances; failure to have sufficient
    insurance; legal, political, health and economic conditions; risk
    factors related to IBM securities; and other risks, uncertainties and
    factors discussed in the company's Form 10-Q, Form 10-K and in the
    company's other filings with the U.S. Securities and Exchange
    Commission (SEC) or in materials incorporated therein by reference.
    The company assumes no obligation to update or revise any forward-
    looking statements.

    Presentation of Information in this Press Release

    In an effort to provide investors with additional information
    regarding the company's results as determined by generally accepted
    accounting principles (GAAP), the company has also disclosed in this
    press release the following non-GAAP information which management
    believes provides useful information to investors:

    IBM Results --

    -- adjusting for currency (i.e., at constant currency).

    The rationale for management's use of non-GAAP measures is
    included as part of the supplementary materials presented within the
    first-quarter earnings materials. These materials are available on the
    IBM investor relations Web site at www.ibm.com/investor and are being
    included in Attachment II ("Non- GAAP Supplementary Materials") to the
    Form 8-K that includes this press release and is being submitted today
    to the SEC.

    Conference Call and Webcast

    IBM's regular quarterly earnings conference call is scheduled to
    begin at 4:30 p.m. EDT, today. Investors may participate by viewing
    the Webcast at www.ibm.com/investor/1q07. Presentation charts will be
    available on the Web site prior to the Webcast.

    Financial Results Attached (amounts may not total due to rounding)

    -0-
    *T
    INTERNATIONAL BUSINESS MACHINES CORPORATION
    COMPARATIVE FINANCIAL RESULTS
    (Unaudited; Dollars in millions except per share amounts)

    Three Months Ended March 31,
    Percent
    2007 2006 Change
    ------- ------- -------
    REVENUE

    Global Technology Services $8,258 $7,719 7.0%
    Gross profit margin 29.2% 29.2%

    Global Business Services 4,183 3,848 8.7%
    Gross profit margin 23.8% 21.4%

    Systems and Technology 4,520 4,419 2.3%
    Gross profit margin 34.8% 32.0%

    Software 4,251 3,907 8.8%
    Gross profit margin 83.6% 84.2%

    Global Financing 614 582 5.6%
    Gross profit margin 50.9% 52.8%

    Other 203 184 10.1%
    Gross profit margin 12.0% 1.2%

    TOTAL REVENUE 22,029 20,659 6.6%

    GROSS PROFIT 8,866 8,088 9.6%
    Gross profit margin 40.2% 39.1%

    EXPENSE AND OTHER INCOME

    S,G&A 5,089 4,602 10.6%
    Expense to revenue 23.1% 22.3%

    R,D&E 1,509 1,456 3.7%
    Expense to revenue 6.9% 7.0%

    Intellectual property
    and custom development
    income (205) (229) -10.6%
    Other (income) and expense (180) (246) -27.0%
    Interest expense 73 66 9.7%

    TOTAL EXPENSE AND
    OTHER INCOME 6,287 5,648 11.3%
    Expense to revenue 28.5% 27.3%

    INCOME FROM CONTINUING
    OPERATIONS BEFORE
    INCOME TAXES 2,579 2,440 5.7%
    Pre-tax margin 11.7% 11.8%

    Provision for
    income taxes 735 732 0.4%
    Effective tax rate 28.5% 30.0%

    INCOME FROM CONTINUING
    OPERATIONS 1,844 1,708 8.0%
    Net margin 8.4% 8.3%

    DISCONTINUED OPERATIONS
    Loss from discontinued
    operations 0 0

    NET INCOME $1,844 $1,708 8.0%
    ====== ======

    EARNINGS/(LOSS)PER SHARE
    OF COMMON STOCK:

    ASSUMING DILUTION
    CONTINUING
    OPERATIONS $1.21 $1.08 12.0%
    DISCONTINUED
    OPERATIONS 0.00 0.00
    ------ ------
    TOTAL $1.21 $1.08 12.0%
    ====== ======
    BASIC
    CONTINUING
    OPERATIONS $1.23 $1.09 12.8%
    DISCONTINUED
    OPERATIONS 0.00 0.00
    ------ ------
    TOTAL $1.23 $1.09 12.8%
    ====== ======
    WEIGHTED-AVERAGE NUMBER
    OF COMMON SHARES
    OUTSTANDING (M's)
    ASSUMING DILUTION 1,522.8 1,587.2
    BASIC 1,499.5 1,564.5

    INTERNATIONAL BUSINESS MACHINES CORPORATION
    CONSOLIDATED STATEMENT OF FINANCIAL POSITION
    (Unaudited)

    At At
    (Dollars in millions) March 31 December 31 Percent
    2007 2006 Change
    --------- ----------- -------
    ASSETS

    Cash, cash equivalents,
    and marketable securities $10,781 $10,657 1.2%

    Receivables - net, inventories,
    prepaid expenses 31,665 34,003 -6.9%

    Plant, rental machines,
    and other property - net 14,414 14,440 -0.2%

    Investments and other assets 44,760 44,134 1.4%
    -------- --------

    TOTAL ASSETS $101,619 $103,234 -1.6%
    ======== ========

    LIABILITIES AND STOCKHOLDERS' EQUITY

    Short-term debt $9,661 $8,902 8.5%
    Long-term debt 14,285 13,780 3.7%
    -------- --------
    Total debt 23,946 22,682 5.6%

    Accounts payable, taxes,
    and accruals 27,102 31,189 -13.1%

    Other liabilities 22,763 20,857 9.1%
    -------- --------
    TOTAL LIABILITIES 73,811 74,728 -1.2%

    STOCKHOLDERS' EQUITY 27,809 28,506 -2.4%
    -------- --------
    TOTAL LIABILITIES AND
    STOCKHOLDERS' EQUITY $101,619 $103,234 -1.6%
    ======== ========

    INTERNATIONAL BUSINESS MACHINES CORPORATION
    SEGMENT DATA
    (Unaudited)

    (Dollars in millions)
    FIRST QUARTER 2007
    ----------------------------------------------
    Pre-tax
    Income
    (Loss)
    From
    --------- Revenue -------- Continuing Pre-tax
    External Internal Total Operations Margin
    ----------------------------------------------
    Global Technology
    Services $8,258 $425 $8,683 $681 7.8%
    Y-T-Y Change 7.0% -5.8% 6.3% -19.3%

    Global Business
    Services 4,183 301 4,485 470 10.5%
    Y-T-Y Change 8.7% -10.4% 7.2% 32.1%

    Systems and
    Technology 4,520 267 4,787 96 2.0%
    Y-T-Y Change 2.3% -4.6% 1.9% nm

    Software 4,251 585 4,836 1,036 21.4%
    Y-T-Y Change 8.8% 13.8% 9.4% 1.5%

    Global Financing 614 349 963 374 38.8%
    Y-T-Y Change 5.6% -4.3% 1.8% -9.7%

    Total Reportable
    Segments 21,826 1,927 23,753 2,657 11.2%
    Y-T-Y Change 6.6% -1.0% 5.9% 1.5%

    Eliminations /
    Other 203 (1,927) (1,724) (78)

    Total IBM
    Consolidated $22,029 $0 $22,029 $2,579 11.7%
    Y-T-Y Change 6.6% 6.6% 5.7%

    nm - not meaningful

    (Dollars in millions)
    FIRST QUARTER 2006
    ----------------------------------------------
    Pre-tax
    Income
    (Loss)
    From
    --------- Revenue -------- Continuing Pre-tax
    External Internal Total Operations Margin
    ----------------------------------------------
    Global Technology
    Services $7,719 $451 $8,171 $844 10.3%

    Global Business
    Services 3,848 336 4,184 356 8.5%

    Systems and
    Technology 4,419 280 4,699 (18) -0.4%

    Software 3,907 514 4,421 1,021 23.1%

    Global Financing 582 364 946 414 43.8%

    Total Reportable
    Segments 20,475 1,946 22,421 2,616 11.7%

    Eliminations /
    Other 184 (1,946) (1,762) (177)

    Total IBM
    Consolidated $20,659 $0 $20,659 $2,440 11.8%
    *T