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4/17/2003

IBM earnings up; Seagate revenues off

The Daily Times-Call

ARMONK, N.Y. — IBM Monday announced first-quarter 2003 earnings of 79 cents per common share on income of $1.4 billion. Both figures represent increases of 8 percent compared with the first quarter of 2002.

Revenues from continuing operations for the quarter were $20.1 billion, an increase of 11 percent over the first quarter last year.

Revenues in IBM’s Global Services Division — which is a large part of the company’s Gunbarrel operation — were up 24 percent, mainly boosted by the acquisition of the consulting arm of Pricewaterhouse Coopers in October.

Earnings fell just shy of a projection by Thomson Financial First Call analysts, who had called for earnings of 80 cents per share.

IBM said Monday it expects to meet analysts’ expectations for full-year earnings of $4.32 per share.

Seagate’s recent quarter down In only its second earnings report since announcing an initial public offering of common shares last December, Seagate is reporting that its revenues were down slightly from 2002.

The company reported that for fiscal third quarter 2003, revenue was $1.62 billion, compared with $1.69 billion during the same quarter the previous year.

Net income for the most recent fiscal quarter was $174 million, or 37 cents per share, compared with $193 million, or 45 cents per share, during the third quarter of the last fiscal year.

Still, in a conference call with investors, Steve Luczo, Seagate’s chairman and chief executive officer, said the company’s results “exceeded financial and operational objectives,” citing “a period of product transition and general economic uncertainty” facing the high-tech industry.

He said the company is in the process of getting more original equipment manufacturers — the companies Seagate sells its hard drives to — to use its 80-gigabyte-per-disc units. Luczo said there were “significant shipments” of such drives in the recent quarter.

For the first nine months of the fiscal year, Seagate reported revenue of $4.93 billion, translating to net income of $481 million, or diluted earnings per share of $1.04.

The first nine months of fiscal year 2002, the company reported revenue of $4.61 billion, $351 million of net income, and earnings per share of 85 cents.