IBM Net Income Drops 32 Percent

IBM

Sam Palmisano, IBM president and CEO, said in a statement, "Our first-quarter results, while disappointing, were largely the result of the continued weak global business environment. As we indicated in our announcement last week, customers in every part of the world deferred technology purchases in the first quarter, and these widespread deferrals hurt us across every one of our major business segments."

IBM warned last week it would not meet Wall Street's expectations for its first-quarter earnings, saying a continued tough marketplace and a big loss in its Technology Group would weigh down its financial results.