IBM Reports 2006 First-Quarter Results

IBM Reports 2006 First-Quarter Results

IBM today announced first-quarter 2006 diluted earnings per common share of $1.08 from continuing operations, compared with diluted earnings of $.85 per share in the first quarter of 2005, an increase of 27 percent. First-quarter income from continuing operations was $1.7 billion compared with $1.4 billion in the first quarter of 2005, an increase of 21 percent. Total revenues for the first quarter of 2006 of $20.7 billion decreased 10 percent (7 percent, adjusting for currency) from the first quarter of 2005, which includes revenue from the divested PC business. Excluding the PC revenue, revenues were flat (up 4 percent, adjusting for currency) compared with the first quarter of 2005.

Samuel J. Palmisano, IBM chairman and chief executive officer, said: “IBM had a good quarter with excellent earnings-per-share results. We continued to improve our profit performance with our strategic focus on higher-value segments of the marketplace, as well as with our emphasis on productivity and global integration. Our performance underscores the strength of our business model across a balanced portfolio of software, services and hardware, and demonstrates the benefits of the strategic actions we’ve taken in recent years to reposition the company.

“We had very strong results in middleware and continued revenue growth in microelectronics for our 300-millimeter wafer products that serve the major gaming platforms. Services signings increased, services margins rose for the seventh straight quarter year to year, and IBM again grew in emerging markets. Our cash position remains strong. After investing in our business and returning nearly $3 billion to investors, we ended the quarter with a cash balance of more than $12 billion, significantly above a year ago. Our clients continued to demonstrate that they value IBM’s ability to help them innovate.”

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