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

 IBM'S SECOND-QUARTER AND FIRST-HALF REVENUE AND EARNINGS
 INCREASE FROM 1991 LEVELS
 ARMONK, N.Y., July 17 /PRNewswire/ -- International Business Machines Corporation ("IBM") (NYSE: IBM) today reported worldwide financial results for the second quarter and first half of 1992. IBM's revenue and earnings increased from those of a year ago.
 IBM Chairman John F. Akers said, "Despite difficult global economies and competitive pricing pressures, our revenue grew in all major geographies in the second quarter. Our revenue increase was led by continued growth in our services and software offerings. We continue to reduce our resources, and our expenses remain under control. We are making steady progress in reshaping IBM to be a better focused, faster- moving competitor."
 For the second quarter of 1992, worldwide revenue was $16.2 billion, up 9.9 percent from the prior year's $14.8 billion. Net earnings from operations for the three months were $714 million in 1992, compared with $126 million in 1991, resulting in earnings per share of $1.25 compared with $.22 in 1991. The after-tax margin was 4.4 percent, compared with .9 percent in 1991. The average number of shares outstanding for the period was 571.0 million in 1992 and 572.5 million in 1991.
 Worldwide revenue for the six months ended June 30, 1992, was $30.3 billion, up 6.7 percent from the prior year's $28.4 billion. Net earnings from operations for the six months were $1.3 billion or $2.29 per share, compared with $.7 billion or $1.19 per share in 1991. The after-tax margin was 4.3 percent for the first six months of 1992, compared with 2.4 percent for the first six months of 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-half 1991 earnings per share of negative $2.77. The average number of shares outstanding for the period was 570.9 million in 1992 and 572.3 million in 1991.
 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 CORPORATION
 Comparative Financial Results
 (In millions except per-share amounts)
 Pct. Increase
 Six months ended June 30 1992 1991 (B) (Decrease)
 Revenue:
 Sales $ 15,761 $ 15,578 1.2
 Software 5,176 4,782 8.2
 Maintenance 3,801 3,697 2.8
 Services 3,147 2,223 41.6
 Rentals and financing 2,376 2,071 14.8
 30,261 28,351 6.7
 Costs and expenses 27,704 26,917 2.9
 Operating income 2,557 1,434 78.3
 Other income 312 357 (12.6)
 Interest expense 661 627 5.3
 Earnings before income taxes 2,208 1,164 89.7
 Provision for income taxes 899 482 86.5
 Earnings before transition
 effect of change in accounting
 principle 1,309 682 92.0
 Transition effect of change in
 accounting principle* - (2,263)
 Net earnings $ 1,309 $ (1,581)
 Per-share amounts:
 Before transition effect
 of change in accounting
 principle $ 2.29 $ 1.19 92.4
 Transition effect of change
 in accounting principle (C) - (3.96)
 Net earnings $ 2.29 $ (2.77)
 Average number of
 shares outstanding 570.9 572.3
 (C) 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
 Comparative Financial Results
 (In millions except per-share amounts)
 Pct. Increase
 Three months ended June 30: 1992 1991(B) (Decrease)
 Revenue:
 Sales $ 8,644 $ 8,266 4.6
 Software 2,682 2,388 12.3
 Maintenance 1,900 1,800 5.5
 Services 1,858 1,278 45.5
 Rentals and financing 1,140 1,032 10.5
 16,224 14,764 9.9
 Costs and expenses 14,835 14,379 3.2
 Operating income 1,389 385 260.2
 Other income 140 157 (10.9)
 Interest expense 312 305 2.1
 Earnings before income taxes 1,217 237 413.8
 Provision for income taxes 503 111 353.1
 Net earnings $ 714 $ 126 467.3
 Per-share $ 1.25 $ .22 468.2
 Average number of
 shares outstanding 571.0 572.5
 (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 16,224 14,764 9.9
 6 Months 30,261 28,351 6.7
 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 1,217 237 413.8
 6 Months 2,208 1,164 89.7
 3rd Quarter 321
 9 Months 1,485
 4th Quarter (1,367)
 Year 118
 Net Earnings
 1st Quarter 595 (1,707)
 2nd Quarter 714 126 467.3
 6 Months 1,309 (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)
 2nd Quarter 1.25 .22 468.2
 6 Months 2.29 (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- 7/17/92
 /CONTACT: Rob Wilson of IBM, 914-765-6565/
 (IBM) CO: IBM Corporation ST: New Tork IN: CPR SU: ERN


TQ -- NY004 -- 0092 07/17/92 09:02 EDT
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