IBM, Digital report improved results

Press, 26 April 1988, Page 39

IBM, Digital report improved results

IBtyl and digital Equipment Corporation hpve repbrted improved results for the first quarter of the financial year. IBM’s woirid net earnings fqr the quarter were SUS9I3M, up 16.3 per cent from 1987’s first quarter earnings of S7BSM. Net earnings were jsl-53 per share in 1988, compared with! per share for 1987. The after-tax marg n was 7.8 per cent in 1988, compared with 7.4 per cent. Earnings before income taxes were 5U51.538 billion in 1988 and 51.337 billion in 1987. Before-tax margins were 13.1 per cent in 1988 and 12)5 per cent in 1987. The results do not reflect? an ’implementation bf Financial Standard Number 96 regarding the treatment of deferred taxes. IBM continues to study the effects of this ‘standard, which ft says should result in a benefit to reported earnings when implemented. Mr Herb Hunt, chairman and managing director (of IBM New Zealand, said that, in line with the corporation’s results and ps earlier forecast,: thejlßM New Zealand business continued to improve in 1988. Digital Equipment Corporation has, reported strong international ! gains in sales and revenue for the third quarter

of its financial year. The quarter ended on March 26. | Digital’s New Zealand general manager, Mr Chris Harkjer, said the company had increased! revenue on its international operations' 17 per! cent over the third quarter of the previous year. International third quarter revenues were 5U52.823 billion. Net income w-as $305.1146 million. For the nirie months ended March 26, international revenues were up 21 per cent to SUSB.L36 billion. New Zealand revenues for the same period rose 24 per cent to 5NZ47.2 million. International net income for the nine months increased to 5U5904.620M. Mr Harker‘said that Digital’s local and international ; order rate growth continued to outpace that of the industry. It was now clear that the industry growth rate, both in New Zealand and overseas, had flattened out. "It is still difficult to say whether the loss of business confidence following the share market crash is going to have a lasting impact on the computer industry here in New- Zealand,” he said. "While our Government business has remained strong, the commercial sector seems to have adopted a ‘wait and see’ attitude towards jnew computer purchases."