IBM Meets 1Q Earnings Forecast

(Boston)-quarter results, the United States International Business Machines Corp.

into a models: Despite the weak point, in some regional markets or business units, the company responsible for the management, so as to achieve its objectives, and increase its overall profitability.

The technology firm to maintain this pattern Tuesday, as it reported first-quarter profit rose 8 percent, in line with Wall Street expectations.

Investors knocked shares fell after work, but, perhaps worried IBMs poor, in its home market and decreases its services contract is signed.

"I think services will be higher than expected, and did not meet the market expected, " Biderman said Snorek, an analyst In the first United States funds. "I would like to see some surprise there - because all drives, In "br> company." In the first three months of this year, IBMs traditionally the slowest quarter that the Armonk headquarters in New York the company earned 1.84 billion US dollars, 1.21 dollars per share .

Compared with the same period last year, IBMs profit of 1.71 billion or 1.08 dollars per share.

Thomson Financial analysts had expected 1.21 dollars per share the first quarter.

IBMs revenue rose 7% to 22 billion US dollars, slightly higher than market analysts forecast 21.9 billion US dollars.

"On the whole, this is a solid quarter, said:" Mark, IBM chief financial officer.

However, the sales accounted for only 4.0% growth, if not weak, In "br> dollars. Downdrafts monetary expansion in the United States the value of the dollar doing transactions in other currencies.

Also worth noting is IBMs geographic it is the weakest part of the biggest: Americas, while revenue increased by only 1%, and the United States particularly weak. Analysts said rival services and hardware company recently made a similar The report, but Mark did not blame economic factors . He said that IBM needs to improve its domestic sales efforts, especially large companies.

News may affect investors pushed IBMs shares fell 79 cents 96.33 US dollars in the extension of trading, shares closed up 94 cents.

To 97.12 US dollars on the New York Stock Exchange.

Analysts also were not Chonghun the mind, IBMs most closely watched stocks, Services, signed a 11.1 billion US dollars of contracts in the first quarter, 11.4 billion US dollars compared to a year ago.

This figure - one of the most popular on Wall Street a barometer for the master I BM # 160 health - representing more than expected revenue will be in the process of several years. In the first quarter of this year, the service of the 8% growth to 12.4 billion dollars. 4% gain has been in constant currency interest rates.

IBM largest in the arm the next generation, hardware unit revenue growth of 2% to 4.5 billion US dollars, although would have been flat if not for currency fluctuations.

Mainframe sales particularly strong, up 12 percent. But chip maker division decreased by 7.0%. IBM has been unable to replace its sales enjoyed earlier in its cycle The top three video production chips game consoles, the Nintendo, Microsoft and Sony Corporation revenue in the software, which accounts for a good part of the IBM profit rose 9 percentage points, 4.3 billion US dollars, mainly due to several acquisitions "middleware" - plumbing behind many commercial computing applications. 5.0% gain had been constant value of the dollar.

Mark said, IBMs outlook for this year remains unchanged since the last earnings conference call in January. Analysts estimate first quarter earnings per share 6.72 US dollars per share and sales of 95.6 billion US dollars.

Andy miedler, analysts, and the Edward Jones Co said that the quarterly The results showed that, the welfare of IBMs geographic and product diversity, This is to enable the company to achieve its targets, even with a poor show, In "br> United States "I think this is a good quarter for them to meet the peoples expectations, In" br> the seasonally weaker part of the year, "miedler said," This diversification is a key reason we like the stock, and why we like in the period of weakness. "

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