STOCK WATCH

IBM buys back shares

IBM's board has voted to buy back a further $3.5 billion worth of common shares in a bid to increase earnings per share. The vendor said it would buy back the shares periodically to take advantage of market conditions. The decision, which was expected by analysts, came after IBM surpassed Wall Street expectations with its third-quarter earnings last week. IBM made a similar move earlier this year, when it authorised the buyback of shares worth the same value. It bought $3.5 billion worth last year.

Platinum Software

Enterprise resource planning software company Platinum Software saw first-quarter net profits to 30 September rise to $4.7 million from $1.3 million last time on $30.3 million turnover, up 66 per cent from last year

Arrow Electronics

Arrow Electronics, a US computer components and electronics distributor, posted third-quarter net profits up at $35.6 million in the period to 30 September, from $9.3 million last time, while turnover was up 11 per cent to $2.1 billion. In the nine-month period, net profits rose two per cent to $113.5 million on sales up nine per cent at $6.2 billion. Comparative figures for the third quarter include pre-tax charges of $21.6 million and $37.9 million relating to integration and realignment costs.

Creative Technology

Creative Technology, the Singapore manufacturer of PC sound and graphics cards, has reported first quarter net income down 69.3 per cent at $21.5 million on turnover down three per cent at $279 million.

Results for the same quarter last year include a pre-tax gain of $18.5 million related to the sale of an investment.

S3

Multimedia accelerator vendor S3 brought in a third-quarter net loss of $35.4 million on revenue that dropped 60.5 per cent to $47.3 million in the period to 30 September, compared with net income of $4.4 million a year ago. Net loss over the nine months was $42.9 million on sales down 45.3 per cent to $183.1 million, against a net income of $17 million last year. Results include a $6.1 million pre-tax restructuring charge and write-offs of assets and equipment of up to $11.9 million. Nine-month results also include a $8 million acquisition charge and a pre-tax gain of $26.6 million from the sale of a manufacturing joint venture.

Nortel

Nortel's $9 billion acquisition of Bay Networks has already hit its balance sheet as the Canadian telecom equipment maker posted a $306 million loss in its third quarter results. Revenues increased by 18 per cent to $4.14 billion, while unspecified sales in the US, Asia Pacific, Caribbean and Latin America increased over the quarter to 30 September. John Roth, chief executive of Nortel, said the firm expected to see 1998 revenue growth from ongoing operations, including Bay Networks, 'in the mid-teens'.

America Online

America Online reported third-quarter net income that tripled to $68 million on revenue up at $858 million. The Virginia-based internet provider said revenue had jumped by 65 per cent and gained quarterly earnings per share of 26 cents, three cents ahead of forecasts.

MCI WorldCom

MCI WorldCom, the US telecoms group, recorded a third-quarter loss of almost $3 billion after a $3.3 billion charge related to the merger. Before the merger charges, profit was $268 million, up on last year's $69 million. The group was formed last month when WorldCom beat British Telecom to the acquisition of MCI.