IBM chip sales, profits up

January 18, 2006 – Semiconductor sales at IBM rose 48% in 4Q05 vs. a year ago, and sales from 300mm products grew over 250%, driven by the first full quarter of contract production of game chip processors. Yields “continue to exceed expectations,” noted SVP and CFO Mark Loughridge.

Overall revenues were down 12% to $24.4 billion, with profits up 12% to $3.19 billion (or 15% better, not including the PC division sold to China’s Lenovo Group). FY05 sales (not including the PC unit) rose 3% to $88.3 billion, with profits up nearly 7% to $8.0 billion. Capex was down about 5% to $3.5 billion.


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