EXHIBIT 99
INTERNATIONAL BUSINESS MACHINES CORPORATION
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENT OF OPERATIONS(1)
SUPPLEMENTAL SCHEDULE (UNAUDITED)
(Dollars in millions) Three Months Ended Six Months Ended
June 30 June 30
------------------- --------------------
1994 1993 1994 1993
-------- -------- -------- --------
Revenue:
Hardware sales $ 7,695 $ 7,459 $ 13,963 $ 13,145
Software 2,726 2,715 5,309 5,236
Services 2,293 1,853 4,128 3,368
Maintenance 1,796 1,857 3,564 3,661
Rentals and financing 841 1,069 1,760 2,156
-------- -------- -------- --------
15,351 14,953 28,724 27,566
Cost:
Hardware sales 5,137 5,153 9,517 9,181
Software 1,021 1,033 1,985 1,969
Services 1,844 1,535 3,400 2,670
Maintenance 904 862 1,775 1,781
Rentals and financing 341 429 707 901
-------- ------- -------- --------
9,247 9,012 17,384 16,502
-------- ------- -------- --------
Gross Profit 6,104 5,941 11,340 11,064
Operating Expenses:
Selling, general and
administrative 3,935 4,480 7,466 8,556
Research, development and
engineering 1,091 1,376 2,192 2,732
Restructuring charges -- -- -- --
-------- ------- -------- -------
5,026 5,856 9,658 11,288
Operating Income (Loss) 1,078 85 1,682 (224)
Other Income, principally interest 479 154 887 345
Interest Expense 364 322 777 627
-------- ------- -------- -------
Earnings (Loss) before Income Taxes 1,193 (83) 1,792 (506)
Income Tax Provision (Benefit) 504 (24) 768 (134)
-------- ------- -------- -------
Net Earnings (Loss) before change in
accounting principle 689 (59) 1,024 (372)
Cumulative effect of change in
accounting for postemployment
benefits -- -- -- --
-------- ------- -------- -------
Net Earnings (Loss) 689 (59) 1,024 (372)
Preferred stock dividends 21 5 42 5
-------- ------- -------- -------
Net Earnings (Loss) applicable to
common shareholders $ 668 $ (64) $ 982 $ (377)
======== ======= ======== =======
- 19 -
EXHIBIT 99
INTERNATIONAL BUSINESS MACHINES CORPORATION
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENT OF OPERATIONS - (CONTINUED)(1)
SUPPLEMENTAL SCHEDULE (UNAUDITED)
(Dollars in millions except Three Months Ended Six Months Ended
for per share amounts) June 30 June 30
------------------- --------------------
1994 1993 1994 1993
-------- -------- --------- -------
Per share of common stock amounts
after preferred stock dividend:
Before change in accounting
principle $ 1.14 $ (0.11) $ 1.68 $ (0.66)
Cumulative effect of change in
accounting for income taxes -- -- -- --
------- ------- ------- -------
Net Earnings (Loss) $ 1.14 $ (0.11) $ 1.68 $ (0.66)
======= ======= ======= =======
Average number of common
shares outstanding (millions) 584.0 570.2 583.1 570.4
(1) Supplemental information provided for comparative purposes.
1994 excludes effects of the sale of FSC and writedown of software.
1993 excludes $8.9 billion restructuring charges, cumulative
effect of implementing SFAS 112, and FSC results.
Printed on Recycled Paper
- 20 -