IBM, Intel and ALR turned in strong results last week with revenues up at all three firms. But despite IBM's continued recovery, the news caused its shares to drop on Wall Street.
Big Blue's turnover for Q1 rose five per cent to $16.6 billion, compared with the same time last year, with profits of $774 million.
Chairman Lou Gerstner said the results were 'good but uneven'. Service revenues had risen 31 per cent, he said, but hardware revenues were disappointing. IBM's shares fell by over $9 per share to $106. But Gerstner said IBM was on the right course despite poor hardware sales, particularly in the AS/400 and S/390 areas.
Intel showed a 31 per cent growth in Q1 turnover, reaching $4.64 billion with profits of $894 million, compared with $889 million a year ago.
CEO Andy Grove said Intel's results contradicted forecasts that PC growth was slowing. 'From our perspective,' he said, 'PC demand appears to be solid.'
But Intel remained cautious about its forecasts. It said a number of risks and uncertainties were involved, including changes in customer order patterns, rival chip architectures and the risk of non-payments and litigation.
Customers were choosing to buy motherboards without DRam, meaning that turnover on these products would decline. Intel's capital expenditure this year will be about $4 billion.
Income at ALR increased 90 per cent in Q2 based on a sales increase of 16 per cent. Turnover for the period was $55 million against $47.4 million last time.
Its CEO, Gene Lu, said that the figures reflected growth in its high-end SMP products rather than desktop machines, which were suffering generally from oversupply.
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