IBM leased more equipment

Press, 15 April 1978, Page 19

IBM leased more equipment

IBM New Zealand, Ltd, reports that audited net profit for the year to December 31, fell 21.2 per cent to $2.6M, I after gross income from i sales, leases, rentals and services rose 1.0 per cent to $29.8M. I The small increase in gross income reflected tjie 'lower proportion of data; processing equipment sold' outright, rather than leased and rented. Income from other sales, leases, rentals and services increased com-' pared with the previous year, says the general manager (Mr B. Logan). The reduction in net profit was caused, to some extent, by the lower proportion of data processing equipment

sold outright, and in addition IBM Nev/ Zealand charged against profit provisions for leave due to employees, and for warranties on sold equipment,! he says. i New capital expenditures! (for the year amounted to $5.4M, and the number of ; people employed increased iby 10 to 526. I The demand for IBM’s' 'products was strong during; I the latter half of the year,) although the 40 per cent; sales'tax on its products re-j mained a heavy - burden to! customers who were seeking! to improve their efficiency; and productivity by the use! of IBM equipment, says Mr) Logan.