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Trio show positive earnings

The Daily Times-Call

ARMONK, N.Y. — IBM’s revenues grew 7 percent in the fourth quarter, despite what Sam Palmisano, chairman and chief executive officer, referred to as “one of the most challenging years in business.”

Revenues from continuing operations in the fourth quarter were $23.7 billion, compared with 2001’s fourth-quarter revenues of $22.1 billion.

The boost in revenue was partially driven by IBM’s acquisition of PricewaterhouseCoopers’ Consulting business. Fourth-quarter revenues from continuing operations were $1.9 billion — including $405 million in charges related to the acquisition — compared with fourth-quarter 2001 income from continuing operations of $2.6 billion.

Fourth-quarter diluted earnings per share was $1.11, compared with diluted earnings per share of $1.46 in the fourth quarter of 2001.

In the most recent quarter, excluding charges related to the acquisition, diluted earnings-per-share from continuing operations would be $1.34.

“The integration of PriceWaterhouseCoopers Consulting is on track, and already we are seeing substantial benefit from this acquisition,” Palmisano said in a company statement. He said IBM’s Global Services division, a large component at the company’s Boulder facility, signed more than $18 billion worth of business in the recent quarter.

Revenue for the entire year 2002 was $81.2 billion — a 2 percent decline from the previous year’s $83.1 billion in revenue.

Income from continuing operations was $5.3 billion in 2002, or $3.07 per diluted share, compared with $8.1 billion, or $4.59 per diluted share, during the previous year.

MILPITAS, Calif. — Maxtor has reported a profit for fourth quarter of 2002, though the hard drive maker again lost money over the course of the whole year.

Revenue for the fourth quarter of 2002 was $1.038 billion, compared with 2001’s fourth- quarter revenue of $1.071 billion.

Excluding charges related to stock compensation expenses and a reduction in its workforce announced last month, Maxtor reported net income for the most recent quarter on a pro forma basis of $37.3 million, or 15 cents per share.

During the same quarter the previous year, the company reported a pro forma net loss of $34.2 million, or 15 cents per share.

Earlier this month, after the quarter had ended, Maxtor announced the resignation of Mike Cannon, the company’s president and chief executive officer who left to take the same position at Solectron Corp.

Paul Tufano, Maxtor’s acting president and CEO, said in a conference call with investors this week that the fourth quarter was a “very favorable environment for the hard drive industry.”

“These results were better than the updated guidance we provided in early December,” Tufano said. “Maxtor has never been as well positioned as it is today.”

December’s job reduction included the loss of 500 jobs total, 311 of which were at the company’s Longmont facility, which still employs more than 800.

For the entire year 2002, Maxtor reported revenue of $3.78 billion, compared with $3.766 billion in 2001.

The net loss from 2002’s continuing operations was $260.6 million, or a loss of $1.09 per share.

In 2001, the company reported a net loss from continuing operations of $598.2 million, or $2.89 per share.

SAN JOSE, Calif. — A steep charge in the most recent quarter impacted the earnings of programmable chip-maker Xilinx.

The company’s third-quarter fiscal 2003 results show revenues of $282.7 million, compared with $228.1 million during the same quarter the previous fiscal year.

However, the company took charges of $62.9 million in the quarter, primarily related to office space the company owned in San Jose, Calif.

This led to a net loss for the most recent quarter.

For the third quarter, Xilinx reported a net income loss of $3.4 million, or 1 cent per share, compared with a profit in the third quarter of the previous fiscal year of $9.7 million, or 3 cents per share.

Excluding the non-cash impairment charges in the most recent quarter, the company would have reported net income of $43.2 million and earnings per diluted share of 12 cents.