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IBM'S FIRST-QUARTER REVENUE, EARNINGS DECLINE FROM 1992 LEVELS

 ARMONK, N.Y., April 20 /PRNewswire/ -- IBM today reported that its first-quarter 1993 revenue declined by 7.0 percent to $13.1 billion, compared with the same period of 1992, and the company recorded a net loss of $285 million, compared with earnings of $642 million a year earlier.(A)
 The company posted a per-share loss of $.50 in the first quarter of 1993 compared with earnings-per-share of $1.12 in the first quarter of 1992.(A)
 IBM's revenues were down slightly in the United States and Asia, while revenues from IBM's European operations fell by 13.8 percent.
 IBM Chairman Louis V. Gerstner Jr. said, "These results reflect weak demand and continued competitive pressures in many of our hardware product lines, particularly mainframe computers and large disk drives. At the same time, demand in our personal computer, workstation, and services businesses -- key growth segments of our industry -- remained strong, and our operating expenses continued to fall."
 IBM said that its sales, general, and administrative expenses declined by 10.1 percent, and total operating expenses continued to decrease, dropping by 8.9 percent. IBM said it will continue to aggressively seek ways to improve the company's profitability.
 IBM reported that total hardware sales fell by 19.4 percent, to $5.7 billion, compared with $7.1 billion in 1992.
 Although mainframe sales fell significantly, IBM took aggressive actions in the first quarter to bolster the competitiveness of its high- end business. The company announced 18 new mainframe models and outlined a plan to introduce microprocessor-based systems in the high- end category later this year. IBM also announced substantial expense reductions in its mainframe business, including additional work force reductions.
 Mid-range computer revenues also declined in the quarter.
 Demand for IBM's personal computers remained strong, building on record fourth-quarter 1992 shipments of new lines introduced last fall.
 IBM also said revenues from the company's workstation family, the RISC System/6000, continued to grow strongly.
 Although hardware sales declined for the quarter, aggregate revenues from IBM's other business offerings increased by 5.8 percent, to $7.3 billion.
 Services revenues grew by 48.1 percent to $1.9 billion, compared with $1.3 billion a year earlier. Revenues for IBM's newest service business in the U.S., the Integrated Systems Solutions Corp., continued to grow strongly in the first quarter.
 Software revenues were up slightly, while maintenance, rentals and financing revenues decreased.
 (A) 1992 earnings and EPS are prior to the cumulative effect of $1.9 billion and $3.33 EPS as a result of the adoption of Statement of Financial Accounting Standards (SFAS) 109, "Accounting for Income Taxes."
 INTERNATIONAL BUSINESS MACHINES CORPORATION
 Comparative financial results:
 (In millions except per-share amounts)
 Three months ended March 31
 Percent Increase
 1993 1992 (Decrease)
 Revenue:
 Sales $ 5,737 $ 7,117 (19.4)
 Software 2,521 2,494 1.1
 Maintenance 1,804 1,901 (5.1)
 Services 1,909 1,289 48.1
 Rentals and financing 1,087 1,236 (12.0)
 13,058 14,037 (7.0)
 Cost 7,896 6,904 14.4
 Gross profit 5,162 7,133 (27.6)
 Expenses 5,432 5,965 (8.9)
 Operating income (270) 1,168 --
 Other income 195 172 13.6
 Interest expense 305 349 (12.5)
 Earnings before income taxes (380) 991 --
 Provision for income taxes (95) 349 --
 Earnings before effect of
 change in accounting
 principle (285) 642 --
 Effect of change in
 accounting principle(B) -- 1,900 --
 Net earnings $ (285) $ 2,542 --
 Per-share amounts:
 Before effect of change
 in accounting principle $ (.50) $ 1.12 --
 Effect of change in
 accounting principle(B) -- 3.33 --
 Net earnings $ (.50) $ 4.45 --
 Average number of
 shares outstanding 570.6 570.9
 (B) Cumulative effect of Statement of Financial Accounting Standards 109, "Accounting for Income Taxes."
 INTERNATIONAL BUSINESS MACHINES CORPORATION
 Revenue - Earnings
 (In millions except per-share amounts)
 Percent Increase
 1993 1992(C) (Decrease)
 Revenue
 1st Quarter $ 13,058 $ 14,037 (7.0)
 2nd Quarter 16,224
 6 Months 30,261
 3rd Quarter 14,702
 9 Months 44,963
 4th Quarter 19,560
 Year 64,523
 Earnings Before
 Income Taxes
 1st Quarter (380) 991 --
 2nd Quarter 1,217
 6 Months 2,208
 3rd Quarter (4,286)
 9 Months (2,078)
 4th Quarter (6,948)
 Year (9,026)
 Net Earnings
 1st Quarter (285) 2,542 --
 2nd Quarter 734
 6 Months 3,276
 3rd Quarter (2,778)
 9 Months 498
 4th Quarter (5,463)
 Year (4,965)
 Earnings-Per-Share
 1st Quarter $ (.50) $ 4.45 --
 2nd Quarter 1.29
 6 Months 5.74
 (9.57)
 Year (8.70)
 (C) First quarter and year-to-date results reflect the effect of the adoption of Statement of Financial Accounting Standards 109, "Accounting for Income Taxes." Third-quarter results include charges of $4.4 billion before taxes and fourth-quarter results include charges of $7.2 billion before taxes, both for capacity and work force reduction actions.
 -0- 4/20/93
 /CONTACT: Rob Wilson of IBM, 914-765-6565/
 (IBM)


CO: International Business Machines Corporation ST: New York IN: CPR SU: ERN

LR -- NY021 -- 7804 04/20/93 08:49 EDT
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Date:Apr 20, 1993
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