EXHIBIT 99
INTERNATIONAL BUSINESS MACHINES CORPORATION
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENT OF OPERATIONS(1)
SUPPLEMENTAL SCHEDULE (UNAUDITED)
(Dollars in millions) Three Months Ended Nine Months Ended
September 30 September 30
------------------- --------------------
1996 1995 1996 1995
-------- -------- --------- --------
Revenue:
Hardware sales $ 8,372 $ 7,745 $ 24,656 $ 24,131
Services 3,932 3,133 10,864 8,619
Software 3,102 3,134 9,334 9,079
Maintenance 1,723 1,849 5,226 5,547
Rentals and financing 933 893 2,724 2,644
-------- -------- --------- --------
Total revenue 18,062 16,754 52,804 50,020
Cost:
Hardware sales 5,282 4,952 16,002 14,938
Services 3,219 2,501 8,755 6,860
Software 986 1,078 2,907 3,149
Maintenance 904 911 2,731 2,679
Rentals and financing 413 391 1,191 1,178
-------- ------- --------- --------
Total cost 10,804 9,833 31,586 28,804
-------- ------- --------- -------
Gross profit 7,258 6,921 21,218 21,216
Operating expenses:
Selling, general and
administrative 4,175 3,858 11,761 11,374
Research, development and
engineering 1,115 1,035 3,322 2,922
-------- ------- --------- -------
Total operating expenses 5,290 4,893 15,083 14,296
Operating income 1,968 2,028 6,135 6,920
Other income, principally interest 183 208 526 692
Interest expense 172 159 526 527
-------- ------- --------- -------
Earnings before income taxes 1,979 2,077 6,135 7,085
Income tax provision 694 775 2,294 2,778
-------- ------- --------- -------
Net earnings 1,285 1,302 3,841 4,307
Preferred stock dividends and
transaction costs 5 5 15 57
-------- ------- --------- -------
Net earnings applicable to
common shareholders $ 1,280 $ 1,297 $ 3,826 $ 4,250
======== ======= ========= =======
Net earnings per share of
common stock $ 2.45 $ 2.30 $ 7.17 $ 7.39
(1) Supplemental information provided for comparative purposes. See
footnote three on page five for details regarding this schedule.
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