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IBM'S FIRST-QUARTER REVENUE AND EARNINGS INCREASE FROM 1991 LEVELS

 IBM'S FIRST-QUARTER REVENUE AND EARNINGS INCREASE FROM 1991 LEVELS
 ARMONK, N.Y., April 14 /PRNewswire/ -- IBM (NYSE: IBM) today reported worldwide financial results for the first quarter of 1992. IBM's revenue and earnings increased from those of a year ago.
 IBM Chairman John F. Akers said, "Our recently announced plan to reshape IBM into a spectrum of businesses is moving forward aggressively throughout the world, and a better focused IBM is emerging. We continued to take actions in the first quarter to strengthen our product line, consolidate manufacturing and development resources and reduce our overall work force. Our expenses remain firmly under control. Although worldwide economic conditions remain unpredictable, we are encouraged by our improved performance, particularly in the U.S., and by the progress we're making in streamlining the company."
 For the first quarter of 1992, worldwide revenue was $14.0 billion, up 3.3 percent from the prior year's $13.6 billion. Net earnings from operations for the three months were $595 million in 1992, compared with $556 million in 1991, resulting in earnings-per-share of $1.04 compared with $.97 from operations in 1991. A one-time adjustment of $3.96 per share due to the adoption of SFAS 106(A) in the first quarter of 1991 resulted in total first-quarter earnings-per-share of negative $2.99. The after-tax margin in the first quarter of 1992 was 4.2 percent compared with 4.1 percent in 1991. The average number of shares outstanding for the period was 570.9 million in 1992 and 572.0 million in 1991.
 Akers said, "Overall, we're pleased with these results and believe we're on track toward achieving our financial objectives for the year."
 NOTE: 1991 results have been restated for the implementation of the AICPA Statement of Position, "Software Revenue Recognition."
 (A) -- SFAS 106, "Employers' Accounting for Postretirement Benefits Other Than Pensions."
 INTERNATIONAL BUSINESS MACHINES CORP.
 Comparative Financial Results
 (In millions except per-share amounts)
 Three months ended March 31: Pct. increase
 1992 1991(B) (decrease)
 Revenue:
 Sales $ 7,117 $ 7,312 (2.7)
 Software 2,494 2,394 4.1
 Maintenance 1,901 1,897 .2
 Services 1,289 945 36.4
 Rentals and financing 1,236 1,039 19.0
 14,037 13,587 3.3
 Costs and expenses 12,869 12,538 2.6
 Operating income 1,168 1,049 11.4
 Other income 172 200 (14.0)
 Interest expense 349 322 8.5
 Earnings before income taxes 991 927 6.9
 Provision for income taxes 396 371 6.8
 Earnings before transition
 effect of change in accounting
 principle 595 556 7.0
 Transition effect of change in
 accounting principle(A) -- (2,263)
 Net earnings $ 595 $ (1,707) 134.8
 Per-share amounts:
 Before transition effect
 of change in accounting
 principle $ 1.04 $ .97 7.2
 Transition effect of change
 in accounting principle(A) -- (3.96)
 Net earnings $ 1.04 $ (2.99) 134.8
 Average number of
 shares outstanding 570.9 572.0
 (A) -- SFAS 106, "Employers' Accounting for Postretirement Benefits Other Than Pensions."
 (B) -- Restated for the AICPA Statement of Position, "Software Revenue Recognition."
 International Business Machines Corporation
 Revenue - Earnings
 (In millions except per-share amounts)
 1992 1991(A) Pct. increase
 Revenue
 1st quarter $ 14,037 $ 13,587 3.3
 2nd quarter 14,764
 6 months 28,351
 3rd quarter 14,447
 9 months 42,798
 4th quarter 21,968
 Year 64,766
 Earnings before
 income taxes
 1st quarter 991 927 6.9
 2nd quarter 237
 6 months 1,164
 3rd quarter 321
 9 months 1,485
 4th quarter (1,367)
 Year 118
 Net earnings
 1st quarter 595 (1,707) 134.8
 2nd quarter 126
 6 months (1,581)
 3rd quarter 177
 9 months (1,404)
 4th quarter (1,457)
 Year (2,861)
 Earnings-per-share
 1st quarter $ 1.04 $ (2.99) 134.8
 2nd quarter .22
 6 months (2.77)
 3rd quarter .31
 9 months (2.46)
 4th quarter (2.55)
 Year (5.01)
 (A) -- 1991 first quarter and year-to-date results reflect the effect of the adoption of SFAS 106, "Employers' Accounting for postretirement Benefits Other Than Pensions." Results for 1991 have been restated for the AICPA Statement of Position, "Software Revenue Recognition."
 -0- 4/14/92
 /CONTACT: Rob Wilson of IBM, 914-765-6565/
 (IBM) CO: International Business Machines Corp. ST: New York IN: CPR SU: ERN


TS -- NY013 -- 8071 04/14/92 08:52 EDT
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Date:Apr 14, 1992
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