EXHIBIT 99.1 INTERNATIONAL BUSINESS MACHINES CORPORATION COMPARATIVE FINANCIAL RESULTS CONTINUING/DISCONTINUED OPERATIONS FORMAT (Unaudited - Dollars in millions except per share amounts) 2001 2000 1999 1998 1997 --------- --------- --------- ---------- -------- REVENUE Global Services $34,956 $33,152 $32,172 $28,916 $25,166 Gross profit margin 27.5% 26.7% 27.6% 26.9% 26.6% Hardware 30,593 34,470 33,674 31,977 34,547 Gross profit margin 30.6% 29.8% 28.5% 31.8% 35.9% Software 12,939 12,598 12,662 11,863 11,164 Gross profit margin 82.5% 81.9% 82.3% 80.9% 75.1% Global Financing 3,426 3,465 3,137 2,877 2,806 Gross profit margin 50.6% 43.3% 41.9% 39.6% 38.8% Enterprise Investments/Other 1,153 1,404 1,689 1,915 2,119 Gross profit margin 45.0% 46.8% 38.5% 34.0% 38.7% TOTAL REVENUE 83,067 85,089 83,334 77,548 75,802 GROSS PROFIT 31,889 31,578 30,842 29,349 29,384 Gross profit margin 38.4% 37.1% 37.0% 37.8% 38.8% EXPENSE AND OTHER INCOME S,G&A 17,048 17,393 15,772 17,661 17,856 Expense to revenue 20.5% 20.4% 18.9% 22.8% 23.6% R,D&E 4,986 5,084 5,219 4,969 4,825 Expense to revenue 6.0% 6.0% 6.3% 6.4% 6.4% Intellectual property and custom development income (1,476) (1,664) (1,391) (974) (895) Other (income) & expense (353) (990) (855) (887) (1,230) Interest expense 234 344 352 468 458 -------- -------- --------- ------- -------- TOTAL EXPENSE AND OTHER INCOME 20,439 20,167 19,097 21,237 21,014 Expense to revenue 24.6% 23.7% 22.9% 27.4% 27.7% INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 11,450 11,411 11,745 8,112 8,370 Pre-tax margin 13.8% 13.4% 14.1% 10.5% 11.0% Provision for income taxes 3,304 3,537 4,386 2,643 2,842 Effective tax rate 28.9% 31.0% 37.3% 32.6% 34.0% INCOME FROM CONTINUING OPERATIONS 8,146 7,874 7,359 5,469 5,528 Net margin 9.8% 9.3% 8.8% 7.1% 7.3% DISCONTINUED OPERATIONS (LOSS)/INCOME FROM DISCONTINUED OPERATIONS (423) 219 353 859 565 -------- -------- --------- ------- -------- NET INCOME 7,723 8,093 7,712 6,328 6,093 Preferred stock dividends 10 20 20 20 20 -------- -------- --------- ------- -------- NET INCOME APPLICABLE TO COMMON SHAREHOLDERS $7,713 $8,073 $7,692 $6,308 $6,073 ======== ======== ========= ======= ======= EARNINGS/(LOSS) PER SHARE COMMON STOCK FROM CONTINUING OPERATIONS: -ASSUMING DILUTION $4.59 $4.32 $3.93 $2.84 $2.72 -BASIC $4.69 $4.45 $4.06 $2.92 $2.80 COMMON STOCK FROM DISCONTINUED OPERATIONS: -ASSUMING DILUTION ($0.24) $0.12 $0.19 $0.45 $0.28 -BASIC ($0.24) $0.12 $0.20 $0.46 $0.29 COMMON STOCK FROM TOTAL OPERATIONS: -ASSUMING DILUTION $4.35 $4.44 $4.12 $3.29 $3.00 -BASIC $4.45 $4.58* $4.25* $3.38 $3.09 AVERAGE NUMBER OF COMMON SHARES OUTSTANDING (M's) DILUTED 1,771.2 1,812.1 1,871.1 1,920.1 2,021.9 BASIC 1,733.3 1,763.0 1,808.5 1,869.0 1,966.6 * Does not total due to rounding.