How chips, PCs, services companies are faring
Jan. 19: IBM Corp. reports fourth-quarter revenues and an outlook for the year that were stronger than expected. The latest results were helped by higher revenue and profit margins in the innovation icon's lucrative software and services segments. The company offered a welcome sign of stability amid the global economic turmoil that's prompting worries about a slowdown in innovation spending by businesses and governments, who are IBM's clients.
Intel Corp., the world's largest chip-maker, says profit rose 6 percent in the latest quarter, even as hard-drive shortages held back PC makers' chip orders. Intel's results, like Apple's in recent quarters, have benefited from the economic surge in China and other developing countries, where many people are buying PCs for the first time.
EMC Corp., the world's largest maker of data-storage computers, provides furthermore evidence that the shift to cloud computing is creating a favorable business climate. With cloud computing, services and software are run on computers located elsewhere instead of on a single computer at a desk. EMC's results for the latest quarter surged past analyst estimates during the forecast for this year called for double-digit growth in revenues and revenue.
Advanced Micro Devices Inc. reports a fourth-quarter loss, afterwards the chip-maker wrote down the value of an investment in its former GlobalFoundries unit by $209 million and recorded $98 million in restructuring costs. AMD lost 24 cents per share, compared with revenues of 50 cents per share a year before. Excluding one-time items, AMD says it earned 19 cents per share in the latest quarter.
Jan. 25: Xerox Corp.'s business of providing services to businesses, to help them manage documents and processes, was the star of the quarter, with revenue up 6 percent. That was balanced by a 5 percent drop in sales of machines and supplies.