IBM Earnings

IBM reported earnings tonight, largely in line with expectations. We view the key quote as being:

“Total revenues for the first quarter of
2006 of $20.7 billion decreased 10 percent (7 percent, adjusting for
currency) from the first quarter of 2005, which includes revenue from
the divested PC business. Excluding the PC revenue, revenues were flat
(up 4 percent, adjusting for currency) compared with the first quarter
of 2005.”

So giving IBM the benefit of the doubt by excluding currency we have revenues up by 4%. This is less than the 6-8% range that has been running for technology spending as a whole, suggesting share loss at IBM.

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