| 2Q05 | IBM Income Statement | Jul-05 | ||||||
| - FORECAST/ACTUAL - | ||||||||
| Currency impact: | -2% | |||||||
| (Forecast) | 2Q05 | % of | Annual | 2Q04 | % of | 2Q03 | % of | |
| ($ mill) | Total | Change | ($ mill) | Total | ($ mill) | Total | ||
| _ | _ | _ | _ | _ | _ | _ | _ | _ |
| Revenue (Gross Income): | ||||||||
| Hardware | 5,370 | 5,556 | 24.9% | -25.2% | 7,423 | 32.1% | 6,613 | 30.6% |
| Services | 10,575 | 10,571 | 47.5% | 6.5% | 9,925 | 43.0% | 9,328 | 43.1% |
| Maintenance | 1,376 | 1,414 | 6.4% | 5.0% | 1,347 | 5.8% | 1,307 | 6.0% |
| Software | 3,700 | 3,821 | 17.2% | 10.5% | 3,458 | 15.0% | 3,471 | 16.0% |
| Enterprise Invest. | 300 | 286 | 1.3% | -2.5% | 294 | 1.3% | 240 | 1.1% |
| Global Financing | 684 | 622 | 2.8% | -4.3% | 651 | 2.8% | 672 | 3.1% |
| Total Revenue | 22,005 | 22,270 | 100.0% | -3.6% | 23,098 | 100.0% | 21,631 | 100.0% |
| Currency adjusted | -1.7% | 22,715 | ||||||
| Costs (e) | GM | |||||||
| Cost of Hardware | 33.9% | 3,674 | 16.5% | -30.3% | 5,270 | 22.8% | 4,831 | 22.3% |
| Cost of Services | 24.9% | 7,938 | 35.6% | 3.1% | 7,702 | 33.3% | 7,095 | 32.8% |
| Cost of Maintenance | 35.0% | 919 | 4.1% | 11.6% | 824 | 3.6% | 784 | 3.6% |
| Cost of Software | 86.7% | 508 | 2.3% | 7.2% | 474 | 2.1% | 478 | 2.2% |
| Enterprise Investments | 43.8% | 161 | 0.7% | 1.7% | 158 | 0.7% | 139 | 0.6% |
| Global Financing | 52.6% | 295 | 1.3% | 11.7% | 264 | 1.1% | 305 | 1.4% |
| Total Cost of Rev. | 13,495 | 60.6% | -8.1% | 14,692 | 63.6% | 13,632 | 63.0% | |
| Gross Profit | 8,775 | 39.4% | 4.4% | 8,406 | 36.4% | 7,999 | 37.0% | |
| SG&A Expenses* | 4,797 | 21.5% | 34.8% | 4,820 | 20.9% | 4,460 | 20.6% | |
| One-time Charges | 1,700 | |||||||
| RD&E Expenses* | 1,477 | 6.6% | 0.1% | 1,476 | 6.4% | 1,227 | 5.7% | |
| Total Costs & Expenses | 21,470 | 96.4% | 2.3% | 20,988 | 90.9% | 19,319 | 89.3% | |
| Operating Income | 800 | 3.6% | -62.1% | 2,110 | 9.1% | 2,312 | 10.7% | |
| Intellectual Property Income** | (288) | -1.3% | -33.3% | (432) | -1.9% | (199) | -0.9% | |
| Other Income | (1,711) | -7.7% | -7539.1% | 23 | 0.1% | 4 | 0.0% | |
| Interest Expense | 67 | 0.3% | 103.0% | 33 | 0.1% | 41 | 0.2% | |
| Earnings (Loss) Before Tax | 2,733 | 12.3% | 9.9% | 2,486 | 10.8% | 2,466 | 11.4% | |
| Tax/Rate (Credit) | 883 | 32.3% | 17.8% | 749 | 30.1% | 741 | 30.0% | |
| Net Earnings | 1,851 | 8.3% | 6.5% | 1,737 | 7.5% | 1,725 | 8.0% | |
| Disco'd Operations | (22) | (2) | ||||||
| Net Earnings after Disc Ops | 1,829 | 8.2% | 5.4% | 1,735 | 7.5% | 1,725 | 8.0% | |
| Shares # (basic) | 1,627.9 | -1.0% | 1,644.2 | 1,729.8 | ||||
| Net Earnings/Share | 1.12 | 6.4% | 1.06 | 1.00 | ||||
| EPS adj. for 37.3% tax | 0.74 | -34% | 0.67 | 0.66 | ||||
| rate, share buybacks | 2,340 | (1995 # shares, adjusted for splits) | ||||||
| Gross Profit: | GP | GM | GP | GM | GP | GM | ||
| Hardware | 1,882 | 33.9% | -12.6% | 2,153 | 29.0% | 1,782 | 26.9% | |
| Services | 2,633 | 24.9% | 18.4% | 2,223 | 22.4% | 2,233 | 23.9% | |
| Software | 3,313 | 86.7% | 11.0% | 2,984 | 86.3% | 2,993 | 86.2% | |
| Maintenance | 495 | 35.0% | -5.4% | 523 | 38.9% | 523 | 40.0% | |
| Enterprise Invest. | 125 | 43.8% | -7.9% | 136 | 46.3% | 101 | 42.1% | |
| Global Financing | 327 | 52.6% | -15.5% | 387 | 59.4% | 367 | 54.6% | |
| Source: Annex Research | *PC/Lenovo results removed | |||||||
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