EXHIBIT IV(A) INTERNATIONAL BUSINESS MACHINES CORPORATION AND SUBSIDIARY COMPANIES QUARTERLY CONSOLIDATED STATEMENT OF OPERATIONS-RESTATED* 1993 FIRST SECOND THIRD FOURTH QUARTER+ QUARTER+ QUARTER+ QUARTER+ FULL YEAR ----------- ----------- ----------- ----------- --------- (DOLLARS IN MILLIONS) Revenue: Hardware Sales...................................... $ 5,737 $ 7,526 $ 6,957 $ 10,371 $ 30,591 Software............................................ 2,521 2,715 2,648 3,069 10,953 Services............................................ 1,909 2,352 2,289 3,161 9,711 Maintenance......................................... 1,804 1,857 1,823 1,811 7,295 Rentals and financing............................... 1,087 1,069 1,026 984 4,166 ----------- ----------- ----------- ----------- --------- 13,058 15,519 14,743 19,396 62,716 Cost: Hardware Sales...................................... 4,072 5,222 4,858 6,544 20,696 Software............................................ 937 1,033 1,026 1,314 4,310 Services............................................ 1,497 1,998 1,986 2,798 8,279 Maintenance......................................... 919 862 854 910 3,545 Rentals and financing............................... 471 430 417 420 1,738 ----------- ----------- ----------- ----------- --------- 7,896 9,545 9,141 11,986 38,568 Gross Profit.......................................... 5,162 5,974 5,602 7,410 24,148 Operating Expenses: Selling, general and administrative................. 4,076 4,487 4,259 5,460 18,282 Research, development and engineering............... 1,356 1,376 1,372 1,454 5,558 Restructuring charges............................... -- 8,945 -- -- 8,945 ----------- ----------- ----------- ----------- --------- 5,432 14,808 5,631 6,914 32,785 Operating (Loss) Income............................... (270) (8,834) (29) 496 (8,637) Other Income, principally interest.................... 195 158 293 467 1,113 Interest Expense...................................... 305 322 346 300 1,273 ----------- ----------- ----------- ----------- --------- (Loss) Earnings before Income Taxes................... (380) (8,998) (82) 663 (8,797) (Benefit) Provision for Income Taxes.................. (95) (962) (34) 281 (810) ----------- ----------- ----------- ----------- --------- Net (Loss) Earnings before change in accounting principle............................................. (285) (8,036) (48) 382 (7,987) Cumulative effect of change in accounting for postretirement benefits......................... (114) -- -- -- (114) ----------- ----------- ----------- ----------- --------- Net (Loss) Earnings................................... (399) (8,036) (48) 382 (8,101) Preferred Stock Dividends............................. -- 5 22 20 47 ----------- ----------- ----------- ----------- --------- Net (Loss) Earnings Applicable to common shareholders.......................................... $ (399) $ (8,041) $ (70) $ 362 $ (8,148) ----------- ----------- ----------- ----------- --------- ----------- ----------- ----------- ----------- --------- - --------------- * See text in Exhibit IV + Unaudited