The copyright-protected information contained in the ANNEX BULLETINS is a component of the Comprehensive Market Service (CMS). It is intended for the exclusive use by those who have contracted for the entire CMS service.
of IBM’s 1999 Annual Report and IBM Global Services Results
IGS: The Only IBM Star
W. AUSTRALIA, Apr. 6 – IBM Global Services (IGS) is the only real IBM star, the Big Blue’s 1999 Annual Report has reaffirmed. And even that star lost some of its luster last year. Its 15% revenue growth is the lowest in the last 10 years that we have been analyzing this IBM unit’s business results (excluding 1994, when IBM got rid of its Federal Systems Division, which skewed the annual growth figures).
But IGS more than made up for the lack of top-of-the-line growth with improvements in profitability and productivity. We estimate that its net profit was up 35% from last year; its pretax profit up 44%, and its gross profit up 23% - making it a shoe-in for our 2000 IT Services Hexathlon “gold” medal in these categories (see the Annex Research 1999 “IT Services Hexathlon”).
As for the rest of the company, awaiting the release of the IBM Annual Report used to be a big deal in the pre-Internet days. It’s a non-event now. Besides the financial details of the kind that only auditors and accountants care about, the only really “new news” was the letter to the shareholders by the chairman and CEO, Lou Gerstner, and the marketing spin that the Annual Report’s designers tried to put on it.
At the time when the .COM’s were multiplying like amoebas, and starting to eat the giant corporations’ lunches (back in 1995-1996), the IBM leader dismissed that phenomenon (see “Louis XIX of Armonk,” Annex Bulletin 96-42, Aug. 21, 1996).
Here’s an excerpt:
Market Shares (Global, U.S., Europe, A/P)
Happy bargain hunting!
NOTE: The print edition of this report, of course, contains additional charts and tables not included here.
Can you afford not to know such things if you're a global competitor? To subscribe, just click on , or call us as (602) 824-8111.
Editor: Bob Djurdjevic
5110 North 40th Street, Phoenix, Arizona
Annex Research| Annex Bulletins| Quotes| Workshop| Search|
Feedback| Clips| Activism| Columns|