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The Information Technology 100

44

International Business Machines

Since its near meltdown in the mid-1990s, IBM has done a noteworthy job of keeping legacy businesses such as the mainframe going even while it builds new information technology business services, which now account for half the company’s revenues. CEO Sam Palmisano sold IBM's PC division to China's Lenovo late last year, clearing the decks for even more focus on business services. But disappointing first-quarter earnings have set the company back. It's now scrambling to improve sales of short-term IT contracts and to goose hardware sales, even while it eliminates up to 13,000 positions. After nearly hitting $100 early in the year, the company's stock has been trading in the mid 70s since the earnings stumble. Don't expect much upside until Palmisano shows he has the business back on track.

Company Info

STOCK INFO IBM
Revenues* $97 BILLION
Revenue Growth 6.3%
Return on Equity 27.6%
Total Return-14.0%
Profits* $8.3 BILLION
Industry SERVICES
CORPORATE WEB SITE
All figures are for the most recent available 12 months.

* Latest available data for the 12-month period ended Dec. 31, Jan. 31, Feb. 29, Mar. 31, or Apr. 30. For companies that do not report quarterly, the most recent annual data were used.


Data provided by Standard & Poor's Compustat, BusinessWeek

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Company Snapshot

International Business Machines Corp. (IBM) operates as an information technology company worldwide. It operates in six segments: Global Services, Systems and Technology Group, Personal Systems Group, Software, Global Financing, and Enterprise Investments. Global Services segment provides consulting services for application and systems integration, client relationship management, financial management, human capital, business strategy and change, supply chain management, and the transformation of business processes and operations. Systems and Technology Group segment provides system and component design services, strategic outsourcing of clients' design teams, and technology and manufacturing consulting services. It also provides data storage products, including disk, tape, and storage area networks. This segment also provides semiconductor technology and products, packaging solutions, and engineering technology services to original equipment manufacturer clients. Personal Systems Group segment offers desktop and notebook computers, production print solutions, on demand print-related solutions, enterprise workgroup print technologies, and print management software and services. Software segment provides middleware and operating systems software. Middleware software enables clients to integrate systems, processes, and applications across their enterprises. It also offers collaboration and messaging software to engage in asynchronous communication, and knowledge management. Global Financing segment provides lease and loan financing to end users and internal customers for terms between two and five years. Enterprise Investments segment develops and provides industry-specific information technology solutions supporting the hardware, software, and global services segments of the company. Its product lines include product life cycle management software and document processing technologies. IBM’s clients include various enterprises, such as sole proprietorships, large organizations, governments, and companies. The company was incorporated in 1911 as the Computing-Tabulating-Recording Co. and changed its name to International Business Machines Corp. in 1924. IBM is based in Armonk, New York.

No. of Employees

348,052


Data provided by Capital IQ
Samuel J. Palmisano

Samuel J. Palmisano

AGE: 53

Titles

Chairman of the Board, President and Chief Executive Officer

CEO Bio >

Total Compensation*

$ 8.8 MILLION

Total Value of Options**

$ 37.7 MILLION

Degrees Held

NA

* Latest available fiscal year
** The sum of the net value of options exercised and held in the latest available fiscal year

Key Executives

Samuel J. Palmisano, Nicholas M. Donofrio, Douglas T. Elix, Jesse J. Greene, Jr., J. Bruce Harreld, Paul M. Horn, Jon C. Iwata, John R. Joyce, John E. Kelly, III, Abby F. Kohnstamm, Edward M. Lineen, Mark Loughridge, J. Randall MacDonald, Steven A. Mills, Robert W. Moffat, Jr., Daniel E. O'Donnell, Linda S. Sanford, Stephen M. Ward, Jr., Timothy S. Shaughnessy, William M. Zeitler

Board Members

Samuel J. Palmisano, Cathleen Black, Kenneth I. Chenault, Juergen Dormann, Michael L. Eskew, Carlos Ghosn, Charles F. Knight, Minoru Makihara, Lucio A. Noto, Joan E. Spero, Sidney Taurel, Charles M. Vest, Lorenzo H. Zambrano


Data provided by Capital IQ
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