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	<title>WebProNews &#187; IBM</title>
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	<description>Breaking News in Tech, Search, Social, &#38; Business</description>
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		<title>IBM Creates The World&#8217;s Smallest Movie Entirely Out Of Atoms</title>
		<link>http://www.webpronews.com/ibm-creates-the-worlds-smallest-movie-entirely-out-of-atoms-2013-05</link>
		<comments>http://www.webpronews.com/ibm-creates-the-worlds-smallest-movie-entirely-out-of-atoms-2013-05#comments</comments>
		<pubDate>Wed, 01 May 2013 15:24:47 +0000</pubDate>
		<dc:creator>Zach Walton</dc:creator>
				<category><![CDATA[Technology]]></category>
		<category><![CDATA[atoms]]></category>
		<category><![CDATA[IBM]]></category>
		<category><![CDATA[Movies]]></category>
		<category><![CDATA[Science]]></category>
		<category><![CDATA[Video]]></category>

		<guid isPermaLink="false">http://www.webpronews.com/?p=227715</guid>
		<description><![CDATA[Atoms make up everything in the universe. So technically, a movie made out of atoms isn&#8217;t all that new. In fact, every movie since the dawn of film has been made of atoms, just like everything else. What&#8217;s unique about &#8230;]]></description>
			<content:encoded><![CDATA[<p>Atoms make up everything in the universe. So technically, a movie made out of atoms isn&#8217;t all that new. In fact, every movie since the dawn of film has been made of atoms, just like everything else. What&#8217;s unique about IBM&#8217;s latest project then is that researchers have made a stop-motion film by moving single atoms. </p>
<p>In what IBM calls the &#8220;world&#8217;s smallest movie,&#8221; <em>A Boy and His Atom</em> is a short film that was created by IBM researchers &#8220;using a scanning tunneling microscope to move thousands of carbon monoxide molecules (two atoms stacked on top of each other).&#8221; They mostly did it just because they could, and the results are pretty amazing: </p>
<p><iframe width="616" height="347" src="http://www.youtube.com/embed/oSCX78-8-q0?rel=0" frameborder="0" allowfullscreen></iframe></p>
<p>It may not look like much, but the above movie is the result of IMB meticulously moving individual atoms to create a scene. It&#8217;s actually kind of mind blowing when you realize we can now move individual atoms &#8211; the basic building blocks of everything, living and non-living, in the universe. </p>
<p>Of course, making movies out of atoms isn&#8217;t IBM&#8217;s primary objective here. The company is researching atomic memory &#8211; a type of memory storage that packs data into incredibly tight spaces to increase the amount of storage possible in tiny spaces. Early last year, IBM was able to store a <a href="http://www.webpronews.com/ibm-bit-twelve-atoms-2012-01">bit of data on just 12 atoms.</a> As the technology advances, we&#8217;ll soon be able to store more and more data on smaller and smaller devices.</p>
<p>Until then, IBM can be content that it holds the Guinness World Record for the world&#8217;s smallest movie. </p>
<p>If you&#8217;re interested in learning how IBM manipulated the atoms to make the movie, check out the video below: </p>
<p><iframe width="616" height="347" src="http://www.youtube.com/embed/xA4QWwaweWA?rel=0" frameborder="0" allowfullscreen></iframe></p>
<p>[h/t: <a href="http://www.reddit.com/r/technology/comments/1dh3pw/ibm_makes_animation_by_manipulating_individual/">Reddit</a>]</p>
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		<title>Civil Liberty Groups Still Don&#8217;t Like CISPA, Issue Open Letter To Congress</title>
		<link>http://www.webpronews.com/civil-liberty-groups-still-dont-like-cispa-issue-open-letter-to-congress-2013-04</link>
		<comments>http://www.webpronews.com/civil-liberty-groups-still-dont-like-cispa-issue-open-letter-to-congress-2013-04#comments</comments>
		<pubDate>Tue, 16 Apr 2013 16:12:57 +0000</pubDate>
		<dc:creator>Zach Walton</dc:creator>
				<category><![CDATA[Technology]]></category>
		<category><![CDATA[CISPA]]></category>
		<category><![CDATA[Congress]]></category>
		<category><![CDATA[House of Representatives]]></category>
		<category><![CDATA[IBM]]></category>
		<category><![CDATA[law]]></category>
		<category><![CDATA[Privacy]]></category>

		<guid isPermaLink="false">http://www.webpronews.com/?p=225241</guid>
		<description><![CDATA[After a closed door markup, CISPA emerged from the House Intelligence Committee with some new amendments. Rep. Mike Rogers, the author of the bill, said the amendments would address concerns from civil liberty groups. Those same groups could not be &#8230;]]></description>
			<content:encoded><![CDATA[<p>After a closed door markup, <a href="http://www.webpronews.com/does-the-new-cispa-better-protect-your-online-privacy-2013-04">CISPA emerged from the House Intelligence Committee</a> with some new amendments. Rep. Mike Rogers, the author of the bill, said the amendments would address concerns from civil liberty groups. Those same groups could not be in more disagreement as they are still saying that CISPA needs to be changed, or just ditched altogether. </p>
<p><a href="https://www.eff.org/deeplinks/2013/04/33-civil-liberties-organizations-oppose-cispa-after-amendments?utm_source=feedly">The Electronic Frontier Foundation</a> alongside 33 other civil liberty groups, including the ACLU and <a href="http://www.webpronews.com/reddit-co-founder-alexis-ohanian-calls-up-larry-page-to-talk-cispa-2013-04">Fight for the Future</a>, have sent an open letter Congress urging members of the House to reject CISPA during its vote this week. </p>
<blockquote><p><em>Earlier this year, many of our organizations wrote to state our opposition to H.R. 624, the Cyber Intelligence Sharing and Protection Act of 2013 (CISPA). We write today to express our continued opposition to this bill following its markup by the House Permanent Select Committee on Intelligence (HPSCI). Although some amendments were adopted in markup to improve the bill’s privacy safeguards, these amendments were woefully inadequate to cure the civil liberties threats posed by this bill. In particular, we remain gravely concerned that despite the amendments, this bill will allow companies that hold very sensitive and personal information to liberally share it with the government, including with military agencies.</em></p></blockquote>
<p>It&#8217;s the idea of sharing information with military agencies that has these groups so concerned. They feel that CISPA would be much more effective if any information sharing was narrowly defined as between companies and civilian agencies: </p>
<blockquote><p><em>CISPA creates an exception to all privacy laws to permit companies to share our information with each other and with the government in the name of cybersecurity. Although a carefully-crafted information sharing program that strictly limits the information to be shared and includes robust privacy safeguards could be an effective approach to cybersecurity, CISPA lacks such protections for individual rights. CISPA’s information sharing regime allows the transfer of vast amounts of data, including sensitive information like Internet records or the content of emails to any agency in the government including military and intelligence agencies like the National Security Agency or the Department of Defense Cyber Command.</em></p></blockquote>
<p>Finally, the letter questions the need for CISPA at all after <a href="http://www.webpronews.com/obamas-cybersecurity-executive-order-is-no-cispa-contains-privacy-protections-2013-02">President Obama&#8217;s cybersecurity executive order</a>, and other laws already on the books, do what CISPA does minus the massive privacy infringement: </p>
<blockquote><p><em>Developments over the last year make CISPA’s approach even more questionable than before. First, the President recently signed Executive Order 13636, which will increase information sharing from the government to the private sector. Information sharing in this direction is often cited as a substantial justification for CISPA and will proceed without legislation. Second, the cybersecurity legislation the Senate considered last year, S. 3414, included privacy protections for information sharing that are entirely absent from CISPA, and the Obama administration, including the intelligence community, has confirmed that those protections would not inhibit cybersecurity programs. These included provisions to ensure that private companies send cyber threat information only to civilian agencies, and a requirement that companies make “reasonable efforts” to remove personal information that is unrelated to the cyber threat when sharing data with the government. Finally, witnesses at a hearing before the House Permanent Select Committee on Intelligence confirmed earlier this year that companies can strip out personally identifiably information that is not necessary to address cyber threats, and CISPA omits any requirement that reasonable efforts be undertaken to do so.</em></p></blockquote>
<p>These groups represent a pretty formidable opposition, but they have their work cut out for them. <a href="http://www.techdirt.com/articles/20130415/11401222711/ibm-sends-200-execs-to-swarm-capital-hill-demand-right-to-send-your-private-info-to-nsa.shtml">TechDirt reported</a> on Monday that IBM will be sending 200 executives to Washington as part of a lobbying effort to see CISPA passed. Why does IBM want to see CISPA passed so badly? The official line is that it wants information sharing between corporations and government to be easier, but the company&#8217;s president has also flat out admitted that he wants to be able to send personal information to the NSA because the agency &#8220;know[s] the most&#8221; about cyber threats. </p>
<p>IBM and other companies that are pushing for CISPA could have nothing but admirable intentions, but it&#8217;s hard to believe that when they&#8217;re all pushing for a law that would give them complete immunity when sharing your private information with the government. </p>
<p>We&#8217;ll continue to follow CISPA as it heads to the House floor for a vote later this week. Don&#8217;t get your hopes up though &#8211; it passed the House with flying colors last year. We can only assume that the House will do so again this year. </p>
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		<title>IBM Earnings: IBM Posts $29.3 Billion In Revenue</title>
		<link>http://www.webpronews.com/ibm-earnings-ibm-posts-29-3-billion-in-revenue-2013-01</link>
		<comments>http://www.webpronews.com/ibm-earnings-ibm-posts-29-3-billion-in-revenue-2013-01#comments</comments>
		<pubDate>Tue, 22 Jan 2013 22:11:30 +0000</pubDate>
		<dc:creator>Chris Crum</dc:creator>
				<category><![CDATA[Business]]></category>
		<category><![CDATA[Earnings]]></category>
		<category><![CDATA[Financial]]></category>
		<category><![CDATA[Ginni Rometty]]></category>
		<category><![CDATA[IBM]]></category>

		<guid isPermaLink="false">http://www.webpronews.com/?p=212661</guid>
		<description><![CDATA[IBM released its Q4 and full-year earnings report today, posting $29.3 billion in revenue (down 1%, flat adjusting for currency, up 1% excluding divested RSS business adjusting for currency) for the quarter, and $104.5 billion for the year (down 2%, &#8230;]]></description>
			<content:encoded><![CDATA[<p>IBM released its Q4 and full-year earnings report today, posting $29.3 billion in revenue (down 1%, flat adjusting for currency, up 1% excluding divested RSS business adjusting for currency) for the quarter, and $104.5 billion for the year (down 2%, flat adjusting for currency). </p>
<p>For the quarter, the company posted diluted earnings of $5.13 per share, up 11%. For the year, it was they were $14.37, up 10%. </p>
<p>Net income was $5.8 billion for the quarter, up 6% year-over-year. Operating (non-GAAP) net income was $6.1 billion, up 10% year-over-year. For the year, net income was $16.6 billion, up 5%, and operating (non-GAAP) was $17.6 billion, up 8%. </p>
<p>&#8220;We achieved record profit, earnings per share and free cash flow in 2012. Our performance in the fourth quarter and for the full year was driven by our strategic growth initiatives &#8212; growth markets, analytics, cloud computing, Smarter Planet solutions &#8212; which support our continued shift to higher-value businesses,” said Ginni Rometty, IBM chairman, president and CEO. </p>
<p><strong>Here&#8217;s the release in its entirety:</strong></p>
<p><em>IBM (NYSE: IBM) today announced fourth-quarter 2012 diluted earnings of $5.13 per share, compared with diluted earnings of $4.62 per share in the fourth quarter of 2011, an increase of 11 percent. Operating (non-GAAP) diluted earnings were $5.39 per share, compared with operating diluted earnings of $4.71 per share in the fourth quarter of 2011, an increase of 14 percent.</p>
<p>Fourth-quarter net income was $5.8 billion compared with $5.5 billion in the fourth quarter of 2011, an increase of 6 percent. Operating (non-GAAP) net income was $6.1 billion compared with $5.6 billion in the fourth quarter of 2011, an increase of 10 percent.</p>
<p>Total revenues for the fourth quarter of 2012 of $29.3 billion decreased 1 percent (flat adjusting for currency) from the fourth quarter of 2011. Without the impact of the divested Retail Store Solutions (RSS) business, revenue increased 1 percent, adjusting for currency.</p>
<p>&#8220;We achieved record profit, earnings per share and free cash flow in 2012. Our performance in the fourth quarter and for the full year was driven by our strategic growth initiatives &#8212; growth markets, analytics, cloud computing, Smarter Planet solutions &#8212; which support our continued shift to higher-value businesses,” said Ginni Rometty, IBM chairman, president and chief executive officer.</p>
<p>”Looking ahead, we continue to invest to deliver innovations for the enterprise in key areas such as big data, mobile solutions, social business and security, while expanding into new markets and reaching new clients. We are well on track toward our long-term roadmap for operating EPS of at least $20 in 2015.”</p>
<p><strong>Fourth-Quarter GAAP &#8211; Operating (non-GAAP) Reconciliation</strong></p>
<p>Fourth-quarter operating (non-GAAP) diluted earnings exclude $0.26 per share of net charges: $0.21 per share for the amortization of purchased intangible assets and other acquisition-related charges, and $0.05 per share for retirement-related items driven by changes to plan assets and liabilities primarily related to market performance.</p>
<p><strong>Full-Year 2013 Expectation</strong></p>
<p>IBM said that it expects to deliver full-year 2013 GAAP earnings per share of at least $15.53; and operating (non-GAAP) earnings per share of at least $16.70. The 2013 operating (non-GAAP) earnings exclude $1.17 per share of charges for amortization of purchased intangible assets, other acquisition-related charges, and retirement-related items driven by changes to plan assets and liabilities primarily related to market performance.</p>
<p><strong>Geographic Regions</strong></p>
<p>The Americas’ fourth-quarter revenues were $12.5 billion, flat (up 1 percent, adjusting for currency) from the 2011 period. Revenues from Europe/Middle East/Africa were $9.1 billion, down 5 percent (down 3 percent, adjusting for currency). Asia-Pacific revenues increased 4 percent (up 5 percent, adjusting for currency) to $7.0 billion. OEM revenues were $679 million, down 5 percent compared with the 2011 fourth quarter.</p>
<p><strong>Growth Markets</strong></p>
<p>Revenues from the company’s growth markets increased 7 percent. Revenues in the BRIC countries — Brazil, Russia, India and China — increased 11 percent (up 14 percent, adjusting for currency).</p>
<p><strong>Services</strong></p>
<p>Global Technology Services segment revenues decreased 2 percent (flat adjusting for currency) to $10.3 billion. Global Business Services segment revenues were down 3 percent (down 2 percent, adjusting for currency) at $4.7 billion.</p>
<p>Pre-tax income from Global Technology Services increased 5 percent; pre-tax margin increased to 19.2 percent. Global Business Services pre-tax income was flat; pre-tax margin increased to 17.2 percent.</p>
<p>The estimated services backlog at December 31 was $140 billion, flat (up $1 billion, adjusting for currency).</p>
<p><strong>Software</strong></p>
<p>Revenues from the Software segment were $7.9 billion, an increase of 3 percent (up 4 percent, adjusting for currency) from the fourth quarter of 2011. Software pre-tax income of $4.0 billion increased 8 percent year over year.</p>
<p>Revenues from IBM’s key middleware products, which include WebSphere, Information Management, Tivoli, Lotus and Rational products, were $5.5 billion, an increase of 5 percent (up 6 percent, adjusting for currency) versus the fourth quarter of 2011. Operating systems revenues of $709 million were flat (up 1 percent, adjusting for currency) compared with the prior-year quarter.</p>
<p>Revenues from the WebSphere family of software products increased 11 percent year over year. Information Management software revenues increased 2 percent. Revenues from Tivoli software increased 4 percent. Revenues from Lotus software increased 9 percent, and Rational software increased 12 percent.</p>
<p><strong>Hardware</strong></p>
<p>Revenues from the Systems and Technology segment totaled $5.8 billion for the quarter, down 1 percent from the fourth quarter of 2011. Excluding Retail Store Solutions (RSS), revenues were up 4 percent. Systems and Technology pre-tax income was $1.0 billion, an increase of 23 percent.</p>
<p>Total systems revenues, excluding RSS, increased 4 percent. Revenues from System z mainframe server products increased 56 percent compared with the year-ago period; revenue in the growth markets increased 68 percent. Total delivery of System z computing power, as measured in MIPS (millions of instructions per second), increased 66 percent versus the prior year and represented the largest MIPS shipment quarter in the company’s history. New workload specialty engines, including Linux, represented one-half of the MIPS shipped. Revenues from Power Systems decreased 19 percent compared with the 2011 period. Revenues from System x decreased 2 percent. Revenues from System Storage decreased 5 percent. Revenues from Retail Store Solutions decreased $239 million year over year as a result of the divestiture in the third quarter. Revenues from Microelectronics OEM increased 4 percent.</p>
<p><strong>Financing</strong></p>
<p>Global Financing segment revenues were down 2 percent (down 1 percent, adjusting for currency) in the fourth quarter to $535 million. Pre-tax income for the segment increased 1 percent to $518 million.</p>
<p><strong>Gross Profit</strong></p>
<p>The company’s total gross profit margin was 51.8 percent in the 2012 fourth quarter compared with 49.9 percent in the 2011 fourth-quarter period. Total operating (non-GAAP) gross profit margin was 52.3 percent in the 2012 fourth quarter compared with 50.2 percent in the 2011 fourth-quarter period, with increases in Services, Software and Hardware.</p>
<p><strong>Expense</strong></p>
<p>Total expense and other income decreased 2 percent to $7.3 billion compared with the prior-year period. S,G&amp;A expense of $5.9 billion decreased 3 percent year over year compared with prior-year expense. R,D&amp;E expense of $1.6 billion increased 2 percent compared with the year-ago period. Intellectual property and custom development income decreased to $227 million compared with $253 million a year ago. Other (income) and expense was income of $47 million compared with prior-year income of $44 million. Interest expense decreased to $109 million compared with $113 million in the prior year.</p>
<p>Total operating (non-GAAP) expense and other income decreased 2 percent to $7.2 billion compared with the prior-year period. Operating (non-GAAP) S,G&amp;A expense of $5.8 billion decreased 3 percent year over year compared with prior-year expense. Operating (non-GAAP) R,D&amp;E expense of $1.6 billion increased 1 percent compared with the year-ago period.</p>
<p>***</p>
<p>Pre-tax income increased 8 percent to $7.8 billion; total operating (non-GAAP) pre-tax income increased 10 percent to $8.1 billion. Pre-tax margin was 26.7 percent, up 2.1 points; total operating (non-GAAP) pre-tax margin was 27.7 percent, up 2.6 points.</p>
<p>IBM’s tax rate was 25.5 percent, up 1.0 points year over year; total operating (non-GAAP) tax rate was 24.4 percent, flat compared to the year-ago period.</p>
<p>Net income margin increased 1.3 points to 19.9 percent; total operating (non-GAAP) net income margin was 20.9 percent, an increase of 1.9 points.</p>
<p>The weighted-average number of diluted common shares outstanding in the fourth-quarter 2012 was 1.14 billion compared with 1.19 billion shares in the same period of 2011.</p>
<p>In the quarter, IBM generated free cash flow of $9.5 billion excluding Global Financing receivables, up $0.6 billion year over year.</p>
<p><strong>Full-Year 2012 Results</strong></p>
<p>Net income for the year ended December 31, 2012 was $16.6 billion compared with $15.9 billion in the prior year, an increase of 5 percent. Operating (non-GAAP) net income was $17.6 billion compared with $16.3 billion in 2011, an increase of 8 percent.</p>
<p>Diluted earnings were $14.37 per share compared with $13.06 per diluted share in 2011, an increase of 10 percent. Operating (non-GAAP) diluted earnings were $15.25 per share, compared with operating diluted earnings of $13.44 per share in 2011, an increase of 13 percent. This was the company’s 10th consecutive year of double-digit EPS growth.</p>
<p>Revenues for 2012 totaled $104.5 billion, a decrease of 2 percent (flat adjusting for currency), compared with $106.9 billion in 2011.</p>
<p><strong>GAAP &#8211; Operating (non-GAAP) Reconciliation</strong></p>
<p>Operating (non-GAAP) diluted earnings for the year exclude $0.88 per share of net charges: $0.55 per share for the amortization of purchased intangible assets and other acquisition-related charges, and $0.33 per share for retirement-related items driven by changes to plan assets and liabilities primarily related to market performance.</p>
<p><strong>Geographic Regions</strong></p>
<p>From a geographic perspective, the Americas’ full-year revenues were $44.6 billion, a decrease of 1 percent (flat adjusting for currency) from the 2011 period. Revenues from Europe/Middle East/Africa were $31.8 billion, a decrease of 6 percent (down 1 percent, adjusting for currency). Asia-Pacific revenues increased 3 percent to $25.9 billion. OEM revenues were $2.2 billion, down 18 percent compared with 2011.</p>
<p><strong>Growth Markets</strong></p>
<p>Revenues from the company’s growth markets increased 4 percent (up 7 percent, adjusting for currency), and represents 24 percent of IBM’s total geographic revenue. Revenues in the BRIC countries — Brazil, Russia, India and China — increased 7 percent (up 12 percent, adjusting for currency).</p>
<p><strong>Segments</strong></p>
<p>Total Global Services revenues decreased 2 percent (flat adjusting for currency). Revenues from the Global Technology Services segment totaled $40.2 billion, a decrease of 2 percent (up 1 percent, adjusting for currency) compared with 2011. Revenues from the Global Business Services segment were $18.6 billion, down 4 percent (down 2 percent, adjusting for currency). Software segment revenues in 2012 totaled $25.4 billion, an increase of 2 percent (up 4 percent, adjusting for currency). Systems and Technology segment revenues were $17.7 billion, a decrease of 7 percent (down 6 percent, adjusting for currency); excluding Retail Store Solutions, revenues were down 5 percent (down 4 percent adjusting for currency). Global Financing segment revenues totaled $2.0 billion, a decrease of 4 percent (down 1 percent, adjusting for currency).</p>
<p>***</p>
<p>The company’s total gross profit margin was 48.1 percent in 2012 compared with 46.9 percent in 2011. Overall gross profit margins improved year over year for the 9th consecutive year. Total operating (non-GAAP) gross profit margin was 48.7 percent in the 2012 period compared with 47.2 percent in the 2011 period, with increases in Services and Software.</p>
<p>The weighted-average number of diluted common shares outstanding in 2012 was 1.16 billion compared with 1.21 billion shares in 2011. As of December 31, 2012, there were 1.12 billion basic common shares outstanding.</p>
<p>Debt, including Global Financing, totaled $33.3 billion, compared with $31.3 billion at year-end 2011. From a management segment view, Global Financing debt totaled $24.5 billion versus $23.3 billion at year-end 2011, resulting in a debt-to-equity ratio of 7.0 to 1. Non-global financing debt totaled $8.8 billion, an increase of $0.8 billion since year-end 2011, resulting in a debt-to-capitalization ratio of 36.1 percent from 32.0 percent.</p>
<p>IBM ended 2012 with $11.1 billion of cash on hand and generated free cash flow of $18.2 billion excluding Global Financing receivables, up approximately $1.6 billion year over year. The company returned $15.8 billion to shareholders through $3.8 billion in dividends and $12.0 billion of share repurchases. The company’s balance sheet remains strong and is well positioned to support the business over the long term.</p>
<p><strong>Forward-Looking and Cautionary Statements</strong></p>
<p>Except for the historical information and discussions contained herein, statements contained in this release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on the company’s current assumptions regarding future business and financial performance. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially, including the following: a downturn in economic environment and corporate IT spending budgets; the company’s failure to meet growth and productivity objectives, a failure of the company’s innovation initiatives; risks from investing in growth opportunities; failure of the company’s intellectual property portfolio to prevent competitive offerings and the failure of the company to obtain necessary licenses; cybersecurity and data privacy considerations; fluctuations in financial results and purchases, impact of local legal, economic, political and health conditions; adverse effects from environmental matters, tax matters and the company’s pension plans; ineffective internal controls; the company’s use of accounting estimates; the company’s ability to attract and retain key personnel and its reliance on critical skills; impacts of relationships with critical suppliers and business with government clients; currency fluctuations and customer financing risks; impact of changes in market liquidity conditions and customer credit risk on receivables; reliance on third party distribution channels; the company’s ability to successfully manage acquisitions and alliances; risk factors related to IBM securities; and other risks, uncertainties and factors discussed in the company’s Form 10-Q, Form 10-K and in the company’s other filings with the U.S. Securities and Exchange Commission (SEC) or in materials incorporated therein by reference. Any forward-looking statement in this release speaks only as of the date on which it is made. The company assumes no obligation to update or revise any forward-looking statements.</p>
<p><strong>Presentation of Information in this Press Release</strong></p>
<p>In an effort to provide investors with additional information regarding the company’s results as determined by generally accepted accounting principles (GAAP), the company has also disclosed in this press release the following non-GAAP information which management believes provides useful information to investors:</p>
<p>IBM results and expectations –</p>
<ul>
<li>presenting operating (non-GAAP) earnings per share amounts and related income statement items;</li>
<li>presenting non-global financing debt-to-capitalization ratio;</li>
<li>adjusting for free cash flow;</li>
<li>adjusting for currency (i.e., at constant currency);</li>
<li>adjusting for the divestiture of RSS.</li>
</ul>
<p>The rationale for management’s use of non-GAAP measures is included as part of the supplementary materials presented within the fourth-quarter earnings materials. These materials are available on the IBM investor relations Web site at <a href="http://cts.businesswire.com/ct/CT?id=smartlink&amp;url=http%3A%2F%2Fwww.ibm.com%2Finvestor&amp;esheet=50539327&amp;lan=en-US&amp;anchor=www.ibm.com%2Finvestor&amp;index=1&amp;md5=a450873eb7ea79c5c8f9ae84cb02fffe" target="_blank">www.ibm.com/investor</a> and are being included in Attachment II (“Non-GAAP Supplementary Materials”) to the Form 8-K that includes this press release and is being submitted today to the SEC.</p>
<p><strong>Conference Call and Webcast</strong></p>
<p>IBM’s regular quarterly earnings conference call is scheduled to begin at 4:30 p.m. EST, today. The Webcast may be viewed at <a href="http://cts.businesswire.com/ct/CT?id=smartlink&amp;url=http%3A%2F%2Fwww.ibm.com%2Finvestor%2F4q12&amp;esheet=50539327&amp;lan=en-US&amp;anchor=www.ibm.com%2Finvestor%2F4q12&amp;index=2&amp;md5=04ab9dbb21d8b006c10851e8fc7e3906" target="_blank">www.ibm.com/investor/4q12</a>. Presentation charts will be available on the Web site shortly before the Webcast.</p>
<p><strong>Financial Results Below </strong>(certain amounts may not add due to use of rounded numbers; percentages presented are calculated from the underlying whole-dollar amounts).</p>
<table cellspacing="0">
<tbody>
<tr>
<td colspan="23">INTERNATIONAL BUSINESS MACHINES CORPORATION</td>
</tr>
<tr>
<td colspan="23">COMPARATIVE FINANCIAL RESULTS</td>
</tr>
<tr>
<td colspan="23">(Dollars in millions except per share amounts)</td>
</tr>
<tr>
<td colspan="23"></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="10">Three Months Ended</td>
<td></td>
<td colspan="10">Twelve Months Ended</td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="10">December 31,</td>
<td></td>
<td colspan="10">December 31,</td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2">Percent</td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2">Percent</td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3">2012</td>
<td></td>
<td colspan="3">2011</td>
<td></td>
<td colspan="2">Change</td>
<td></td>
<td colspan="3">2012</td>
<td></td>
<td colspan="3">2011</td>
<td></td>
<td colspan="2">Change</td>
</tr>
<tr>
<td>REVENUE</td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td>Global Technology Services</td>
<td></td>
<td>$</td>
<td>10,284</td>
<td></td>
<td></td>
<td>$</td>
<td>10,452</td>
<td></td>
<td></td>
<td>-1.6</td>
<td>%</td>
<td></td>
<td>$</td>
<td>40,236</td>
<td></td>
<td></td>
<td>$</td>
<td>40,879</td>
<td></td>
<td></td>
<td>-1.6</td>
<td>%</td>
</tr>
<tr>
<td>Gross profit margin</td>
<td></td>
<td></td>
<td>37.6</td>
<td>%</td>
<td></td>
<td></td>
<td>36.6</td>
<td>%</td>
<td></td>
<td colspan="2"></td>
<td></td>
<td></td>
<td>36.6</td>
<td>%</td>
<td></td>
<td></td>
<td>35.0</td>
<td>%</td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td>Global Business Services</td>
<td></td>
<td></td>
<td>4,720</td>
<td></td>
<td></td>
<td></td>
<td>4,877</td>
<td></td>
<td></td>
<td>-3.2</td>
<td>%</td>
<td></td>
<td></td>
<td>18,566</td>
<td></td>
<td></td>
<td></td>
<td>19,284</td>
<td></td>
<td></td>
<td>-3.7</td>
<td>%</td>
</tr>
<tr>
<td>Gross profit margin</td>
<td></td>
<td></td>
<td>29.9</td>
<td>%</td>
<td></td>
<td></td>
<td>29.3</td>
<td>%</td>
<td></td>
<td colspan="2"></td>
<td></td>
<td></td>
<td>30.0</td>
<td>%</td>
<td></td>
<td></td>
<td>28.8</td>
<td>%</td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td>Software</td>
<td></td>
<td></td>
<td>7,915</td>
<td></td>
<td></td>
<td></td>
<td>7,648</td>
<td></td>
<td></td>
<td>3.5</td>
<td>%</td>
<td></td>
<td></td>
<td>25,448</td>
<td></td>
<td></td>
<td></td>
<td>24,944</td>
<td></td>
<td></td>
<td>2.0</td>
<td>%</td>
</tr>
<tr>
<td>Gross profit margin</td>
<td></td>
<td></td>
<td>90.6</td>
<td>%</td>
<td></td>
<td></td>
<td>89.8</td>
<td>%</td>
<td></td>
<td colspan="2"></td>
<td></td>
<td></td>
<td>88.7</td>
<td>%</td>
<td></td>
<td></td>
<td>88.5</td>
<td>%</td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td>System and Technology</td>
<td></td>
<td></td>
<td>5,763</td>
<td></td>
<td></td>
<td></td>
<td>5,803</td>
<td></td>
<td></td>
<td>-0.7</td>
<td>%</td>
<td></td>
<td></td>
<td>17,667</td>
<td></td>
<td></td>
<td></td>
<td>18,985</td>
<td></td>
<td></td>
<td>-6.9</td>
<td>%</td>
</tr>
<tr>
<td>Gross profit margin</td>
<td></td>
<td></td>
<td>44.1</td>
<td>%</td>
<td></td>
<td></td>
<td>40.5</td>
<td>%</td>
<td></td>
<td colspan="2"></td>
<td></td>
<td></td>
<td>39.1</td>
<td>%</td>
<td></td>
<td></td>
<td>39.8</td>
<td>%</td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td>Global Financing</td>
<td></td>
<td></td>
<td>535</td>
<td></td>
<td></td>
<td></td>
<td>548</td>
<td></td>
<td></td>
<td>-2.3</td>
<td>%</td>
<td></td>
<td></td>
<td>2,013</td>
<td></td>
<td></td>
<td></td>
<td>2,102</td>
<td></td>
<td></td>
<td>-4.2</td>
<td>%</td>
</tr>
<tr>
<td>Gross profit margin</td>
<td></td>
<td></td>
<td>43.8</td>
<td>%</td>
<td></td>
<td></td>
<td>49.7</td>
<td>%</td>
<td></td>
<td colspan="2"></td>
<td></td>
<td></td>
<td>46.5</td>
<td>%</td>
<td></td>
<td></td>
<td>49.8</td>
<td>%</td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td>Other</td>
<td></td>
<td></td>
<td>87</td>
<td></td>
<td></td>
<td></td>
<td>159</td>
<td></td>
<td></td>
<td>-45.3</td>
<td>%</td>
<td></td>
<td></td>
<td>577</td>
<td></td>
<td></td>
<td></td>
<td>722</td>
<td></td>
<td></td>
<td>-20.1</td>
<td>%</td>
</tr>
<tr>
<td>Gross profit margin</td>
<td></td>
<td></td>
<td>-73.2</td>
<td>%</td>
<td></td>
<td></td>
<td>-11.0</td>
<td>%</td>
<td></td>
<td colspan="2"></td>
<td></td>
<td></td>
<td>-71.6</td>
<td>%</td>
<td></td>
<td></td>
<td>-54.5</td>
<td>%</td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td>TOTAL REVENUE</td>
<td></td>
<td></td>
<td>29,304</td>
<td></td>
<td></td>
<td></td>
<td>29,486</td>
<td></td>
<td></td>
<td>-0.6</td>
<td>%</td>
<td></td>
<td></td>
<td>104,507</td>
<td></td>
<td></td>
<td></td>
<td>106,916</td>
<td></td>
<td></td>
<td>-2.3</td>
<td>%</td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td>GROSS PROFIT</td>
<td></td>
<td></td>
<td>15,167</td>
<td></td>
<td></td>
<td></td>
<td>14,722</td>
<td></td>
<td></td>
<td>3.0</td>
<td>%</td>
<td></td>
<td></td>
<td>50,298</td>
<td></td>
<td></td>
<td></td>
<td>50,138</td>
<td></td>
<td></td>
<td>0.3</td>
<td>%</td>
</tr>
<tr>
<td>Gross profit margin</td>
<td></td>
<td></td>
<td>51.8</td>
<td>%</td>
<td></td>
<td></td>
<td>49.9</td>
<td>%</td>
<td></td>
<td colspan="2"></td>
<td></td>
<td></td>
<td>48.1</td>
<td>%</td>
<td></td>
<td></td>
<td>46.9</td>
<td>%</td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td>EXPENSE AND OTHER INCOME</td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td>S,G&amp;A</td>
<td></td>
<td></td>
<td>5,921</td>
<td></td>
<td></td>
<td></td>
<td>6,076</td>
<td></td>
<td></td>
<td>-2.6</td>
<td>%</td>
<td></td>
<td></td>
<td>23,553</td>
<td></td>
<td></td>
<td></td>
<td>23,594</td>
<td></td>
<td></td>
<td>-0.2</td>
<td>%</td>
</tr>
<tr>
<td>Expense to revenue</td>
<td></td>
<td></td>
<td>20.2</td>
<td>%</td>
<td></td>
<td></td>
<td>20.6</td>
<td>%</td>
<td></td>
<td colspan="2"></td>
<td></td>
<td></td>
<td>22.5</td>
<td>%</td>
<td></td>
<td></td>
<td>22.1</td>
<td>%</td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td>R,D&amp;E</td>
<td></td>
<td></td>
<td>1,580</td>
<td></td>
<td></td>
<td></td>
<td>1,555</td>
<td></td>
<td></td>
<td>1.6</td>
<td>%</td>
<td></td>
<td></td>
<td>6,302</td>
<td></td>
<td></td>
<td></td>
<td>6,258</td>
<td></td>
<td></td>
<td>0.7</td>
<td>%</td>
</tr>
<tr>
<td>Expense to revenue</td>
<td></td>
<td></td>
<td>5.4</td>
<td>%</td>
<td></td>
<td></td>
<td>5.3</td>
<td>%</td>
<td></td>
<td colspan="2"></td>
<td></td>
<td></td>
<td>6.0</td>
<td>%</td>
<td></td>
<td></td>
<td>5.9</td>
<td>%</td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td>Intellectual property</td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td>and custom development</td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td>income</td>
<td></td>
<td></td>
<td>(227</td>
<td>)</td>
<td></td>
<td></td>
<td>(253</td>
<td>)</td>
<td></td>
<td>-10.1</td>
<td>%</td>
<td></td>
<td></td>
<td>(1,074</td>
<td>)</td>
<td></td>
<td></td>
<td>(1,108</td>
<td>)</td>
<td></td>
<td>-3.0</td>
<td>%</td>
</tr>
<tr>
<td colspan="23"></td>
</tr>
<tr>
<td>Other (income)and expense</td>
<td></td>
<td></td>
<td>(47</td>
<td>)</td>
<td></td>
<td></td>
<td>(44</td>
<td>)</td>
<td></td>
<td>7.3</td>
<td>%</td>
<td></td>
<td></td>
<td>(843</td>
<td>)</td>
<td></td>
<td></td>
<td>(20</td>
<td>)</td>
<td></td>
<td>NM</td>
<td></td>
</tr>
<tr>
<td colspan="23"></td>
</tr>
<tr>
<td>Interest expense</td>
<td></td>
<td></td>
<td>109</td>
<td></td>
<td></td>
<td></td>
<td>113</td>
<td></td>
<td></td>
<td>-3.8</td>
<td>%</td>
<td></td>
<td></td>
<td>459</td>
<td></td>
<td></td>
<td></td>
<td>411</td>
<td></td>
<td></td>
<td>11.8</td>
<td>%</td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td>TOTAL EXPENSE AND</td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td>OTHER INCOME</td>
<td></td>
<td></td>
<td>7,336</td>
<td></td>
<td></td>
<td></td>
<td>7,448</td>
<td></td>
<td></td>
<td>-1.5</td>
<td>%</td>
<td></td>
<td></td>
<td>28,396</td>
<td></td>
<td></td>
<td></td>
<td>29,135</td>
<td></td>
<td></td>
<td>-2.5</td>
<td>%</td>
</tr>
<tr>
<td>Expense to revenue</td>
<td></td>
<td></td>
<td>25.0</td>
<td>%</td>
<td></td>
<td></td>
<td>25.3</td>
<td>%</td>
<td></td>
<td colspan="2"></td>
<td></td>
<td></td>
<td>27.2</td>
<td>%</td>
<td></td>
<td></td>
<td>27.3</td>
<td>%</td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td>INCOME BEFORE</td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td>INCOME TAXES</td>
<td></td>
<td></td>
<td>7,831</td>
<td></td>
<td></td>
<td></td>
<td>7,274</td>
<td></td>
<td></td>
<td>7.7</td>
<td>%</td>
<td></td>
<td></td>
<td>21,902</td>
<td></td>
<td></td>
<td></td>
<td>21,003</td>
<td></td>
<td></td>
<td>4.3</td>
<td>%</td>
</tr>
<tr>
<td>Pre-tax margin</td>
<td></td>
<td></td>
<td>26.7</td>
<td>%</td>
<td></td>
<td></td>
<td>24.7</td>
<td>%</td>
<td></td>
<td colspan="2"></td>
<td></td>
<td></td>
<td>21.0</td>
<td>%</td>
<td></td>
<td></td>
<td>19.6</td>
<td>%</td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td>Provision for income taxes</td>
<td></td>
<td></td>
<td>1,998</td>
<td></td>
<td></td>
<td></td>
<td>1,784</td>
<td></td>
<td></td>
<td>12.0</td>
<td>%</td>
<td></td>
<td></td>
<td>5,298</td>
<td></td>
<td></td>
<td></td>
<td>5,148</td>
<td></td>
<td></td>
<td>2.9</td>
<td>%</td>
</tr>
<tr>
<td>Effective tax rate</td>
<td></td>
<td></td>
<td>25.5</td>
<td>%</td>
<td></td>
<td></td>
<td>24.5</td>
<td>%</td>
<td></td>
<td colspan="2"></td>
<td></td>
<td></td>
<td>24.2</td>
<td>%</td>
<td></td>
<td></td>
<td>24.5</td>
<td>%</td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td>NET INCOME</td>
<td></td>
<td>$</td>
<td>5,833</td>
<td></td>
<td></td>
<td>$</td>
<td>5,490</td>
<td></td>
<td></td>
<td>6.3</td>
<td>%</td>
<td></td>
<td>$</td>
<td>16,604</td>
<td></td>
<td></td>
<td>$</td>
<td>15,855</td>
<td></td>
<td></td>
<td>4.7</td>
<td>%</td>
</tr>
<tr>
<td>Net income margin</td>
<td></td>
<td></td>
<td>19.9</td>
<td>%</td>
<td></td>
<td></td>
<td>18.6</td>
<td>%</td>
<td></td>
<td colspan="2"></td>
<td></td>
<td></td>
<td>15.9</td>
<td>%</td>
<td></td>
<td></td>
<td>14.8</td>
<td>%</td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td>EARNINGS PER SHARE</td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td>OF COMMON STOCK:</td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td>ASSUMING DILUTION</td>
<td></td>
<td>$</td>
<td>5.13</td>
<td></td>
<td></td>
<td>$</td>
<td>4.62</td>
<td></td>
<td></td>
<td>11.0</td>
<td>%</td>
<td></td>
<td>$</td>
<td>14.37</td>
<td></td>
<td></td>
<td>$</td>
<td>13.06</td>
<td></td>
<td></td>
<td>10.0</td>
<td>%</td>
</tr>
<tr>
<td>BASIC</td>
<td></td>
<td>$</td>
<td>5.19</td>
<td></td>
<td></td>
<td>$</td>
<td>4.68</td>
<td></td>
<td></td>
<td>10.9</td>
<td>%</td>
<td></td>
<td>$</td>
<td>14.53</td>
<td></td>
<td></td>
<td>$</td>
<td>13.25</td>
<td></td>
<td></td>
<td>9.7</td>
<td>%</td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td>WEIGHTED-AVERAGE NUMBER</td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td>OF COMMON SHARES OUT-</td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td>STANDING (M&#8217;s):</td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td>ASSUMING DILUTION</td>
<td></td>
<td></td>
<td>1,136.4</td>
<td></td>
<td></td>
<td></td>
<td>1,188.7</td>
<td></td>
<td></td>
<td colspan="2"></td>
<td></td>
<td></td>
<td>1,155.4</td>
<td></td>
<td></td>
<td></td>
<td>1,213.8</td>
<td></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td>BASIC</td>
<td></td>
<td></td>
<td>1,124.7</td>
<td></td>
<td></td>
<td></td>
<td>1,172.2</td>
<td></td>
<td></td>
<td colspan="2"></td>
<td></td>
<td></td>
<td>1,142.5</td>
<td></td>
<td></td>
<td></td>
<td>1,197.0</td>
<td></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td colspan="23"></td>
</tr>
<tr>
<td colspan="23">NM &#8211; - Not Meaningful</td>
</tr>
<tr>
<td colspan="23"></td>
</tr>
</tbody>
</table>
<table cellspacing="0">
<tbody>
<tr>
<td colspan="9">INTERNATIONAL BUSINESS MACHINES CORPORATION</td>
</tr>
<tr>
<td colspan="9">CONSOLIDATED STATEMENT OF FINANCIAL POSITION</td>
</tr>
<tr>
<td colspan="9"></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3">At</td>
<td></td>
<td colspan="3">At</td>
</tr>
<tr>
<td>(Dollars in Millions)</td>
<td></td>
<td colspan="3">December 31,</td>
<td></td>
<td colspan="3">December 31,</td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3">2012</td>
<td></td>
<td colspan="3">2011</td>
</tr>
<tr>
<td>ASSETS:</td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td colspan="9"></td>
</tr>
<tr>
<td>Current Assets:</td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td>Cash and cash equivalents</td>
<td></td>
<td>$</td>
<td>10,412</td>
<td></td>
<td></td>
<td>$</td>
<td>11,922</td>
<td></td>
</tr>
<tr>
<td>Marketable securities</td>
<td></td>
<td></td>
<td>717</td>
<td></td>
<td></td>
<td></td>
<td>&#8211;</td>
<td></td>
</tr>
<tr>
<td>Notes and accounts receivable &#8211; trade</td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td>(net of allowances of $255 in 2012 and $256 in 2011)</td>
<td></td>
<td></td>
<td>10,667</td>
<td></td>
<td></td>
<td></td>
<td>11,179</td>
<td></td>
</tr>
<tr>
<td>Short-term financing receivables</td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td>(net of allowances of $288 in 2012 and $311 in 2011)</td>
<td></td>
<td></td>
<td>18,038</td>
<td></td>
<td></td>
<td></td>
<td>16,901</td>
<td></td>
</tr>
<tr>
<td>Other accounts receivable</td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td>(net of allowances of $17 in 2012 and $11 in 2011)</td>
<td></td>
<td></td>
<td>1,873</td>
<td></td>
<td></td>
<td></td>
<td>1,481</td>
<td></td>
</tr>
<tr>
<td>Inventories, at lower of average cost or market:</td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td>Finished goods</td>
<td></td>
<td></td>
<td>475</td>
<td></td>
<td></td>
<td></td>
<td>589</td>
<td></td>
</tr>
<tr>
<td>Work in process and raw materials</td>
<td></td>
<td></td>
<td>1,812</td>
<td></td>
<td></td>
<td></td>
<td>2,007</td>
<td></td>
</tr>
<tr>
<td>Total inventories</td>
<td></td>
<td></td>
<td>2,287</td>
<td></td>
<td></td>
<td></td>
<td>2,595</td>
<td></td>
</tr>
<tr>
<td>Deferred taxes</td>
<td></td>
<td></td>
<td>1,415</td>
<td></td>
<td></td>
<td></td>
<td>1,601</td>
<td></td>
</tr>
<tr>
<td>Prepaid expenses and other current assets</td>
<td></td>
<td></td>
<td>4,024</td>
<td></td>
<td></td>
<td></td>
<td>5,249</td>
<td></td>
</tr>
<tr>
<td>Total Current Assets</td>
<td></td>
<td></td>
<td>49,433</td>
<td></td>
<td></td>
<td></td>
<td>50,928</td>
<td></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td>Property, plant and equipment</td>
<td></td>
<td></td>
<td>40,501</td>
<td></td>
<td></td>
<td></td>
<td>40,124</td>
<td></td>
</tr>
<tr>
<td>Less: Accumulated depreciation</td>
<td></td>
<td></td>
<td>26,505</td>
<td></td>
<td></td>
<td></td>
<td>26,241</td>
<td></td>
</tr>
<tr>
<td>Property, plant and equipment &#8211; net</td>
<td></td>
<td></td>
<td>13,996</td>
<td></td>
<td></td>
<td></td>
<td>13,883</td>
<td></td>
</tr>
<tr>
<td>Long-term financing receivables</td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td>(net of allowances of $66 in 2012 and $38 in 2011)</td>
<td></td>
<td></td>
<td>12,812</td>
<td></td>
<td></td>
<td></td>
<td>10,776</td>
<td></td>
</tr>
<tr>
<td>Prepaid pension assets</td>
<td></td>
<td></td>
<td>945</td>
<td></td>
<td></td>
<td></td>
<td>2,843</td>
<td></td>
</tr>
<tr>
<td>Deferred taxes</td>
<td></td>
<td></td>
<td>3,973</td>
<td></td>
<td></td>
<td></td>
<td>3,503</td>
<td></td>
</tr>
<tr>
<td>Goodwill</td>
<td></td>
<td></td>
<td>29,247</td>
<td></td>
<td></td>
<td></td>
<td>26,213</td>
<td></td>
</tr>
<tr>
<td>Intangible assets &#8211; net</td>
<td></td>
<td></td>
<td>3,787</td>
<td></td>
<td></td>
<td></td>
<td>3,392</td>
<td></td>
</tr>
<tr>
<td>Investments and sundry assets</td>
<td></td>
<td></td>
<td>5,021</td>
<td></td>
<td></td>
<td></td>
<td>4,895</td>
<td></td>
</tr>
<tr>
<td>Total Assets</td>
<td></td>
<td>$</td>
<td>119,213</td>
<td></td>
<td></td>
<td>$</td>
<td>116,433</td>
<td></td>
</tr>
<tr>
<td colspan="9"></td>
</tr>
<tr>
<td>LIABILITIES:</td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td>Current Liabilities:</td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td>Taxes</td>
<td></td>
<td>$</td>
<td>4,948</td>
<td></td>
<td></td>
<td>$</td>
<td>3,313</td>
<td></td>
</tr>
<tr>
<td>Short-term debt</td>
<td></td>
<td></td>
<td>9,181</td>
<td></td>
<td></td>
<td></td>
<td>8,463</td>
<td></td>
</tr>
<tr>
<td>Accounts payable</td>
<td></td>
<td></td>
<td>7,952</td>
<td></td>
<td></td>
<td></td>
<td>8,517</td>
<td></td>
</tr>
<tr>
<td>Compensation and benefits</td>
<td></td>
<td></td>
<td>4,745</td>
<td></td>
<td></td>
<td></td>
<td>5,099</td>
<td></td>
</tr>
<tr>
<td>Deferred income</td>
<td></td>
<td></td>
<td>11,952</td>
<td></td>
<td></td>
<td></td>
<td>12,197</td>
<td></td>
</tr>
<tr>
<td>Other accrued expenses and liabilities</td>
<td></td>
<td></td>
<td>4,847</td>
<td></td>
<td></td>
<td></td>
<td>4,535</td>
<td></td>
</tr>
<tr>
<td>Total Current Liabilities</td>
<td></td>
<td></td>
<td>43,625</td>
<td></td>
<td></td>
<td></td>
<td>42,123</td>
<td></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td>Long-term debt</td>
<td></td>
<td></td>
<td>24,088</td>
<td></td>
<td></td>
<td></td>
<td>22,857</td>
<td></td>
</tr>
<tr>
<td>Retirement and nonpension postretirement</td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td>benefit obligations</td>
<td></td>
<td></td>
<td>20,418</td>
<td></td>
<td></td>
<td></td>
<td>18,374</td>
<td></td>
</tr>
<tr>
<td>Deferred income</td>
<td></td>
<td></td>
<td>4,491</td>
<td></td>
<td></td>
<td></td>
<td>3,847</td>
<td></td>
</tr>
<tr>
<td>Other liabilities</td>
<td></td>
<td></td>
<td>7,607</td>
<td></td>
<td></td>
<td></td>
<td>8,996</td>
<td></td>
</tr>
<tr>
<td>Total Liabilities</td>
<td></td>
<td></td>
<td>100,229</td>
<td></td>
<td></td>
<td></td>
<td>96,197</td>
<td></td>
</tr>
<tr>
<td colspan="9"></td>
</tr>
<tr>
<td>EQUITY:</td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td>IBM Stockholders&#8217; Equity:</td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td>Common stock</td>
<td></td>
<td></td>
<td>50,110</td>
<td></td>
<td></td>
<td></td>
<td>48,129</td>
<td></td>
</tr>
<tr>
<td>Retained earnings</td>
<td></td>
<td></td>
<td>117,641</td>
<td></td>
<td></td>
<td></td>
<td>104,857</td>
<td></td>
</tr>
<tr>
<td>Treasury stock &#8212; at cost</td>
<td></td>
<td></td>
<td>(123,131</td>
<td>)</td>
<td></td>
<td></td>
<td>(110,963</td>
<td>)</td>
</tr>
<tr>
<td>Accumulated other comprehensive income/(loss)</td>
<td></td>
<td></td>
<td>(25,759</td>
<td>)</td>
<td></td>
<td></td>
<td>(21,885</td>
<td>)</td>
</tr>
<tr>
<td>Total IBM stockholders&#8217; equity</td>
<td></td>
<td></td>
<td>18,860</td>
<td></td>
<td></td>
<td></td>
<td>20,138</td>
<td></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td>Noncontrolling interests</td>
<td></td>
<td></td>
<td>124</td>
<td></td>
<td></td>
<td></td>
<td>97</td>
<td></td>
</tr>
<tr>
<td>Total Equity</td>
<td></td>
<td></td>
<td>18,984</td>
<td></td>
<td></td>
<td></td>
<td>20,236</td>
<td></td>
</tr>
<tr>
<td>Total Liabilities and Equity</td>
<td></td>
<td>$</td>
<td>119,213</td>
<td></td>
<td></td>
<td>$</td>
<td>116,433</td>
<td></td>
</tr>
<tr>
<td colspan="9"></td>
</tr>
</tbody>
</table>
<table cellspacing="0">
<tbody>
<tr>
<td colspan="17">INTERNATIONAL BUSINESS MACHINES CORPORATION</td>
</tr>
<tr>
<td colspan="17">CASH FLOW ANALYSIS</td>
</tr>
<tr>
<td colspan="17"></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="7">Three Months Ended</td>
<td></td>
<td colspan="7">Twelve Months Ended</td>
</tr>
<tr>
<td>(Dollars in Millions)</td>
<td></td>
<td colspan="7">December 31,</td>
<td></td>
<td colspan="7">December 31,</td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3">2012</td>
<td></td>
<td colspan="3">2011</td>
<td></td>
<td colspan="3">2012</td>
<td></td>
<td colspan="3">2011</td>
</tr>
<tr>
<td colspan="17"></td>
</tr>
<tr>
<td>Net Cash from Operating Activities per GAAP:</td>
<td></td>
<td>$</td>
<td>6,346</td>
<td></td>
<td></td>
<td>$</td>
<td>7,097</td>
<td></td>
<td></td>
<td>$</td>
<td>19,586</td>
<td></td>
<td></td>
<td>$</td>
<td>19,846</td>
<td></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td>Less: the change in Global Financing (GF)</td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td>Receivables</td>
<td></td>
<td></td>
<td>(4,151</td>
<td>)</td>
<td></td>
<td></td>
<td>(2,927</td>
<td>)</td>
<td></td>
<td></td>
<td>(2,906</td>
<td>)</td>
<td></td>
<td></td>
<td>(817</td>
<td>)</td>
</tr>
<tr>
<td>Net Cash from Operating Activities</td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td>(Excluding GF Receivables)</td>
<td></td>
<td></td>
<td>10,497</td>
<td></td>
<td></td>
<td></td>
<td>10,024</td>
<td></td>
<td></td>
<td></td>
<td>22,492</td>
<td></td>
<td></td>
<td></td>
<td>20,663</td>
<td></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td>Capital Expenditures, Net</td>
<td></td>
<td></td>
<td>(981</td>
<td>)</td>
<td></td>
<td></td>
<td>(1,059</td>
<td>)</td>
<td></td>
<td></td>
<td>(4,307</td>
<td>)</td>
<td></td>
<td></td>
<td>(4,059</td>
<td>)</td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td>Free Cash Flow</td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td>(Excluding GF Receivables)</td>
<td></td>
<td></td>
<td>9,515</td>
<td></td>
<td></td>
<td></td>
<td>8,965</td>
<td></td>
<td></td>
<td></td>
<td>18,185</td>
<td></td>
<td></td>
<td></td>
<td>16,604</td>
<td></td>
</tr>
<tr>
<td colspan="17"></td>
</tr>
<tr>
<td>Acquisitions</td>
<td></td>
<td></td>
<td>(1,455</td>
<td>)</td>
<td></td>
<td></td>
<td>(1,588</td>
<td>)</td>
<td></td>
<td></td>
<td>(3,722</td>
<td>)</td>
<td></td>
<td></td>
<td>(1,811</td>
<td>)</td>
</tr>
<tr>
<td>Divestitures</td>
<td></td>
<td></td>
<td>13</td>
<td></td>
<td></td>
<td></td>
<td>10</td>
<td></td>
<td></td>
<td></td>
<td>599</td>
<td></td>
<td></td>
<td></td>
<td>14</td>
<td></td>
</tr>
<tr>
<td>Dividends</td>
<td></td>
<td></td>
<td>(957</td>
<td>)</td>
<td></td>
<td></td>
<td>(880</td>
<td>)</td>
<td></td>
<td></td>
<td>(3,773</td>
<td>)</td>
<td></td>
<td></td>
<td>(3,473</td>
<td>)</td>
</tr>
<tr>
<td>Share Repurchase</td>
<td></td>
<td></td>
<td>(3,006</td>
<td>)</td>
<td></td>
<td></td>
<td>(3,581</td>
<td>)</td>
<td></td>
<td></td>
<td>(11,995</td>
<td>)</td>
<td></td>
<td></td>
<td>(15,046</td>
<td>)</td>
</tr>
<tr>
<td>Non-GF Debt</td>
<td></td>
<td></td>
<td>(1,571</td>
<td>)</td>
<td></td>
<td></td>
<td>599</td>
<td></td>
<td></td>
<td></td>
<td>713</td>
<td></td>
<td></td>
<td></td>
<td>1,692</td>
<td></td>
</tr>
<tr>
<td>Other (includes GF Receivables, and</td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td>GF Debt)</td>
<td></td>
<td></td>
<td>(3,664</td>
<td>)</td>
<td></td>
<td></td>
<td>(2,906</td>
<td>)</td>
<td></td>
<td></td>
<td>(802</td>
<td>)</td>
<td></td>
<td></td>
<td>2,291</td>
<td></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td>Change in Cash, Cash Equivalents and</td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td>Short-term Marketable Securities</td>
<td></td>
<td></td>
<td>($1,125</td>
<td>)</td>
<td></td>
<td>$</td>
<td>619</td>
<td></td>
<td></td>
<td></td>
<td>($794</td>
<td>)</td>
<td></td>
<td>$</td>
<td>271</td>
<td></td>
</tr>
<tr>
<td colspan="17"></td>
</tr>
</tbody>
</table>
<table cellspacing="0">
<tbody>
<tr>
<td colspan="20">INTERNATIONAL BUSINESS MACHINES CORPORATION</td>
</tr>
<tr>
<td colspan="20">SEGMENT DATA</td>
</tr>
<tr>
<td colspan="20"></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="18">FOURTH-QUARTER 2012</td>
</tr>
<tr>
<td>(Dollars in Millions)</td>
<td></td>
<td colspan="11"></td>
<td></td>
<td colspan="3">Pre-tax</td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="11">Revenue</td>
<td></td>
<td colspan="3">Income/</td>
<td></td>
<td colspan="2">Pre-tax</td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3">External</td>
<td></td>
<td colspan="3">Internal</td>
<td></td>
<td colspan="3">Total</td>
<td></td>
<td colspan="3">(Loss)</td>
<td></td>
<td colspan="2">Margin</td>
</tr>
<tr>
<td>SEGMENTS</td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td>Global Technology Services</td>
<td></td>
<td>$</td>
<td>10,284</td>
<td></td>
<td></td>
<td>$</td>
<td>297</td>
<td></td>
<td></td>
<td>$</td>
<td>10,581</td>
<td></td>
<td></td>
<td>$</td>
<td>2,027</td>
<td></td>
<td></td>
<td>19.2</td>
<td>%</td>
</tr>
<tr>
<td>Y-T-Y change</td>
<td></td>
<td></td>
<td>-1.6</td>
<td>%</td>
<td></td>
<td></td>
<td>-0.6</td>
<td>%</td>
<td></td>
<td></td>
<td>-1.6</td>
<td>%</td>
<td></td>
<td></td>
<td>5.0</td>
<td>%</td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td>Global Business Services</td>
<td></td>
<td></td>
<td>4,720</td>
<td></td>
<td></td>
<td></td>
<td>181</td>
<td></td>
<td></td>
<td></td>
<td>4,901</td>
<td></td>
<td></td>
<td></td>
<td>841</td>
<td></td>
<td></td>
<td>17.2</td>
<td>%</td>
</tr>
<tr>
<td>Y-T-Y change</td>
<td></td>
<td></td>
<td>-3.2</td>
<td>%</td>
<td></td>
<td></td>
<td>-5.9</td>
<td>%</td>
<td></td>
<td></td>
<td>-3.3</td>
<td>%</td>
<td></td>
<td></td>
<td>0.1</td>
<td>%</td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td>Software</td>
<td></td>
<td></td>
<td>7,915</td>
<td></td>
<td></td>
<td></td>
<td>815</td>
<td></td>
<td></td>
<td></td>
<td>8,730</td>
<td></td>
<td></td>
<td></td>
<td>4,017</td>
<td></td>
<td></td>
<td>46.0</td>
<td>%</td>
</tr>
<tr>
<td>Y-T-Y change</td>
<td></td>
<td></td>
<td>3.5</td>
<td>%</td>
<td></td>
<td></td>
<td>-4.2</td>
<td>%</td>
<td></td>
<td></td>
<td>2.7</td>
<td>%</td>
<td></td>
<td></td>
<td>8.3</td>
<td>%</td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td>Systems and Technology</td>
<td></td>
<td></td>
<td>5,763</td>
<td></td>
<td></td>
<td></td>
<td>186</td>
<td></td>
<td></td>
<td></td>
<td>5,949</td>
<td></td>
<td></td>
<td></td>
<td>974</td>
<td></td>
<td></td>
<td>16.4</td>
<td>%</td>
</tr>
<tr>
<td>Y-T-Y change</td>
<td></td>
<td></td>
<td>-0.7</td>
<td>%</td>
<td></td>
<td></td>
<td>0.0</td>
<td>%</td>
<td></td>
<td></td>
<td>-0.7</td>
<td>%</td>
<td></td>
<td></td>
<td>23.2</td>
<td>%</td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td>Global Financing</td>
<td></td>
<td></td>
<td>535</td>
<td></td>
<td></td>
<td></td>
<td>568</td>
<td></td>
<td></td>
<td></td>
<td>1,103</td>
<td></td>
<td></td>
<td></td>
<td>518</td>
<td></td>
<td></td>
<td>46.9</td>
<td>%</td>
</tr>
<tr>
<td>Y-T-Y change</td>
<td></td>
<td></td>
<td>-2.3</td>
<td>%</td>
<td></td>
<td></td>
<td>-0.1</td>
<td>%</td>
<td></td>
<td></td>
<td>-1.2</td>
<td>%</td>
<td></td>
<td></td>
<td>0.7</td>
<td>%</td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td>TOTAL REPORTABLE SEGMENTS</td>
<td></td>
<td>$</td>
<td>29,217</td>
<td></td>
<td></td>
<td>$</td>
<td>2,048</td>
<td></td>
<td></td>
<td>$</td>
<td>31,265</td>
<td></td>
<td></td>
<td>$</td>
<td>8,377</td>
<td></td>
<td></td>
<td>26.8</td>
<td>%</td>
</tr>
<tr>
<td>Y-T-Y change</td>
<td></td>
<td></td>
<td>-0.4</td>
<td>%</td>
<td></td>
<td></td>
<td>-2.4</td>
<td>%</td>
<td></td>
<td></td>
<td>-0.5</td>
<td>%</td>
<td></td>
<td></td>
<td>7.6</td>
<td>%</td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td>Eliminations / Other</td>
<td></td>
<td></td>
<td>87</td>
<td></td>
<td></td>
<td></td>
<td>(2,048</td>
<td>)</td>
<td></td>
<td></td>
<td>(1,961</td>
<td>)</td>
<td></td>
<td></td>
<td>(546</td>
<td>)</td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td>TOTAL IBM CONSOLIDATED</td>
<td></td>
<td>$</td>
<td>29,304</td>
<td></td>
<td></td>
<td>$</td>
<td>0</td>
<td></td>
<td></td>
<td>$</td>
<td>29,304</td>
<td></td>
<td></td>
<td>$</td>
<td>7,831</td>
<td></td>
<td></td>
<td>26.7</td>
<td>%</td>
</tr>
<tr>
<td>Y-T-Y change</td>
<td></td>
<td></td>
<td>-0.6</td>
<td>%</td>
<td></td>
<td colspan="3"></td>
<td></td>
<td></td>
<td>-0.6</td>
<td>%</td>
<td></td>
<td></td>
<td>7.7</td>
<td>%</td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="18"></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="18"></td>
</tr>
<tr>
<td>&nbsp;</td>
<td></td>
<td colspan="18">FOURTH-QUARTER 2011</td>
</tr>
<tr>
<td>(Dollars in Millions)</td>
<td></td>
<td colspan="11"></td>
<td></td>
<td colspan="3">Pre-tax</td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="11">Revenue</td>
<td></td>
<td colspan="3">Income/</td>
<td></td>
<td colspan="2">Pre-tax</td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3">External</td>
<td></td>
<td colspan="3">Internal</td>
<td></td>
<td colspan="3">Total</td>
<td></td>
<td colspan="3">(Loss)</td>
<td></td>
<td colspan="2">Margin</td>
</tr>
<tr>
<td>SEGMENTS</td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td>Global Technology Services</td>
<td></td>
<td>$</td>
<td>10,452</td>
<td></td>
<td></td>
<td>$</td>
<td>299</td>
<td></td>
<td></td>
<td>$</td>
<td>10,751</td>
<td></td>
<td></td>
<td>$</td>
<td>1,930</td>
<td></td>
<td></td>
<td>18.0</td>
<td>%</td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td>Global Business Services</td>
<td></td>
<td></td>
<td>4,877</td>
<td></td>
<td></td>
<td></td>
<td>193</td>
<td></td>
<td></td>
<td></td>
<td>5,069</td>
<td></td>
<td></td>
<td></td>
<td>841</td>
<td></td>
<td></td>
<td>16.6</td>
<td>%</td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td>Software</td>
<td></td>
<td></td>
<td>7,648</td>
<td></td>
<td></td>
<td></td>
<td>851</td>
<td></td>
<td></td>
<td></td>
<td>8,499</td>
<td></td>
<td></td>
<td></td>
<td>3,710</td>
<td></td>
<td></td>
<td>43.7</td>
<td>%</td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td>Systems and Technology</td>
<td></td>
<td></td>
<td>5,803</td>
<td></td>
<td></td>
<td></td>
<td>186</td>
<td></td>
<td></td>
<td></td>
<td>5,989</td>
<td></td>
<td></td>
<td></td>
<td>790</td>
<td></td>
<td></td>
<td>13.2</td>
<td>%</td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td>Global Financing</td>
<td></td>
<td></td>
<td>548</td>
<td></td>
<td></td>
<td></td>
<td>569</td>
<td></td>
<td></td>
<td></td>
<td>1,116</td>
<td></td>
<td></td>
<td></td>
<td>514</td>
<td></td>
<td></td>
<td>46.1</td>
<td>%</td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td>TOTAL REPORTABLE SEGMENTS</td>
<td></td>
<td>$</td>
<td>29,328</td>
<td></td>
<td></td>
<td>$</td>
<td>2,098</td>
<td></td>
<td></td>
<td>$</td>
<td>31,425</td>
<td></td>
<td></td>
<td>$</td>
<td>7,786</td>
<td></td>
<td></td>
<td>24.8</td>
<td>%</td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td>Eliminations / Other</td>
<td></td>
<td></td>
<td>159</td>
<td></td>
<td></td>
<td></td>
<td>(2,098</td>
<td>)</td>
<td></td>
<td></td>
<td>(1,939</td>
<td>)</td>
<td></td>
<td></td>
<td>(512</td>
<td>)</td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td>TOTAL IBM CONSOLIDATED</td>
<td></td>
<td>$</td>
<td>29,486</td>
<td></td>
<td></td>
<td>$</td>
<td>0</td>
<td></td>
<td></td>
<td>$</td>
<td>29,486</td>
<td></td>
<td></td>
<td>$</td>
<td>7,274</td>
<td></td>
<td></td>
<td>24.7</td>
<td>%</td>
</tr>
<tr>
<td colspan="20"></td>
</tr>
</tbody>
</table>
<table cellspacing="0">
<tbody>
<tr>
<td colspan="20">INTERNATIONAL BUSINESS MACHINES CORPORATION</td>
</tr>
<tr>
<td colspan="20">SEGMENT DATA</td>
</tr>
<tr>
<td colspan="20"></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="18">TWELVE-MONTHS 2012</td>
</tr>
<tr>
<td>(Dollars in Millions)</td>
<td></td>
<td colspan="11"></td>
<td></td>
<td colspan="3">Pre-tax</td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="11">Revenue</td>
<td></td>
<td colspan="3">Income/</td>
<td></td>
<td colspan="2">Pre-tax</td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3">External</td>
<td></td>
<td colspan="3">Internal</td>
<td></td>
<td colspan="3">Total</td>
<td></td>
<td colspan="3">(Loss)</td>
<td></td>
<td colspan="2">Margin</td>
</tr>
<tr>
<td>SEGMENTS</td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td>Global Technology Services</td>
<td></td>
<td>$</td>
<td>40,236</td>
<td></td>
<td></td>
<td>$</td>
<td>1,166</td>
<td></td>
<td></td>
<td>$</td>
<td>41,402</td>
<td></td>
<td></td>
<td>$</td>
<td>6,961</td>
<td></td>
<td></td>
<td>16.8</td>
<td>%</td>
</tr>
<tr>
<td>Y-T-Y change</td>
<td></td>
<td></td>
<td>-1.6</td>
<td>%</td>
<td></td>
<td></td>
<td>-6.2</td>
<td>%</td>
<td></td>
<td></td>
<td>-1.7</td>
<td>%</td>
<td></td>
<td></td>
<td>10.8</td>
<td>%</td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td>Global Business Services</td>
<td></td>
<td></td>
<td>18,566</td>
<td></td>
<td></td>
<td></td>
<td>719</td>
<td></td>
<td></td>
<td></td>
<td>19,286</td>
<td></td>
<td></td>
<td></td>
<td>2,983</td>
<td></td>
<td></td>
<td>15.5</td>
<td>%</td>
</tr>
<tr>
<td>Y-T-Y change</td>
<td></td>
<td></td>
<td>-3.7</td>
<td>%</td>
<td></td>
<td></td>
<td>-9.7</td>
<td>%</td>
<td></td>
<td></td>
<td>-4.0</td>
<td>%</td>
<td></td>
<td></td>
<td>-0.8</td>
<td>%</td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td>Software</td>
<td></td>
<td></td>
<td>25,448</td>
<td></td>
<td></td>
<td></td>
<td>3,274</td>
<td></td>
<td></td>
<td></td>
<td>28,722</td>
<td></td>
<td></td>
<td></td>
<td>10,810</td>
<td></td>
<td></td>
<td>37.6</td>
<td>%</td>
</tr>
<tr>
<td>Y-T-Y change</td>
<td></td>
<td></td>
<td>2.0</td>
<td>%</td>
<td></td>
<td></td>
<td>-0.1</td>
<td>%</td>
<td></td>
<td></td>
<td>1.8</td>
<td>%</td>
<td></td>
<td></td>
<td>8.4</td>
<td>%</td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td>Systems and Technology</td>
<td></td>
<td></td>
<td>17,667</td>
<td></td>
<td></td>
<td></td>
<td>676</td>
<td></td>
<td></td>
<td></td>
<td>18,343</td>
<td></td>
<td></td>
<td></td>
<td>1,227</td>
<td></td>
<td></td>
<td>6.7</td>
<td>%</td>
</tr>
<tr>
<td>Y-T-Y change</td>
<td></td>
<td></td>
<td>-6.9</td>
<td>%</td>
<td></td>
<td></td>
<td>-19.3</td>
<td>%</td>
<td></td>
<td></td>
<td>-7.5</td>
<td>%</td>
<td></td>
<td></td>
<td>-24.9</td>
<td>%</td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td>Global Financing</td>
<td></td>
<td></td>
<td>2,013</td>
<td></td>
<td></td>
<td></td>
<td>2,060</td>
<td></td>
<td></td>
<td></td>
<td>4,073</td>
<td></td>
<td></td>
<td></td>
<td>2,034</td>
<td></td>
<td></td>
<td>49.9</td>
<td>%</td>
</tr>
<tr>
<td>Y-T-Y change</td>
<td></td>
<td></td>
<td>-4.2</td>
<td>%</td>
<td></td>
<td></td>
<td>-1.6</td>
<td>%</td>
<td></td>
<td></td>
<td>-2.9</td>
<td>%</td>
<td></td>
<td></td>
<td>1.1</td>
<td>%</td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td>TOTAL REPORTABLE SEGMENTS</td>
<td></td>
<td>$</td>
<td>103,930</td>
<td></td>
<td></td>
<td>$</td>
<td>7,896</td>
<td></td>
<td></td>
<td>$</td>
<td>111,826</td>
<td></td>
<td></td>
<td>$</td>
<td>24,015</td>
<td></td>
<td></td>
<td>21.5</td>
<td>%</td>
</tr>
<tr>
<td>Y-T-Y change</td>
<td></td>
<td></td>
<td>-2.1</td>
<td>%</td>
<td></td>
<td></td>
<td>-4.3</td>
<td>%</td>
<td></td>
<td></td>
<td>-2.3</td>
<td>%</td>
<td></td>
<td></td>
<td>4.8</td>
<td>%</td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td>Eliminations / Other</td>
<td></td>
<td></td>
<td>577</td>
<td></td>
<td></td>
<td></td>
<td>(7,896</td>
<td>)</td>
<td></td>
<td></td>
<td>(7,319</td>
<td>)</td>
<td></td>
<td></td>
<td>(2,113</td>
<td>)</td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td>TOTAL IBM CONSOLIDATED</td>
<td></td>
<td>$</td>
<td>104,507</td>
<td></td>
<td></td>
<td>$</td>
<td>0</td>
<td></td>
<td></td>
<td>$</td>
<td>104,507</td>
<td></td>
<td></td>
<td>$</td>
<td>21,902</td>
<td></td>
<td></td>
<td>21.0</td>
<td>%</td>
</tr>
<tr>
<td>Y-T-Y change</td>
<td></td>
<td></td>
<td>-2.3</td>
<td>%</td>
<td></td>
<td colspan="3"></td>
<td></td>
<td></td>
<td>-2.3</td>
<td>%</td>
<td></td>
<td></td>
<td>4.3</td>
<td>%</td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td colspan="20"></td>
</tr>
<tr>
<td colspan="20"></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="18">TWELVE-MONTHS 2011</td>
</tr>
<tr>
<td>(Dollars in Millions)</td>
<td></td>
<td colspan="11"></td>
<td></td>
<td colspan="3">Pre-tax</td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="11">Revenue</td>
<td></td>
<td colspan="3">Income/</td>
<td></td>
<td colspan="2">Pre-tax</td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3">External</td>
<td></td>
<td colspan="3">Internal</td>
<td></td>
<td colspan="3">Total</td>
<td></td>
<td colspan="3">(Loss)</td>
<td></td>
<td colspan="2">Margin</td>
</tr>
<tr>
<td>SEGMENTS</td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td>Global Technology Services</td>
<td></td>
<td>$</td>
<td>40,879</td>
<td></td>
<td></td>
<td>$</td>
<td>1,242</td>
<td></td>
<td></td>
<td>$</td>
<td>42,121</td>
<td></td>
<td></td>
<td>$</td>
<td>6,284</td>
<td></td>
<td></td>
<td>14.9</td>
<td>%</td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td>Global Business Services</td>
<td></td>
<td></td>
<td>19,284</td>
<td></td>
<td></td>
<td></td>
<td>797</td>
<td></td>
<td></td>
<td></td>
<td>20,081</td>
<td></td>
<td></td>
<td></td>
<td>3,006</td>
<td></td>
<td></td>
<td>15.0</td>
<td>%</td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td>Software</td>
<td></td>
<td></td>
<td>24,944</td>
<td></td>
<td></td>
<td></td>
<td>3,276</td>
<td></td>
<td></td>
<td></td>
<td>28,219</td>
<td></td>
<td></td>
<td></td>
<td>9,970</td>
<td></td>
<td></td>
<td>35.3</td>
<td>%</td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td>Systems and Technology</td>
<td></td>
<td></td>
<td>18,985</td>
<td></td>
<td></td>
<td></td>
<td>838</td>
<td></td>
<td></td>
<td></td>
<td>19,823</td>
<td></td>
<td></td>
<td></td>
<td>1,633</td>
<td></td>
<td></td>
<td>8.2</td>
<td>%</td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td>Global Financing</td>
<td></td>
<td></td>
<td>2,102</td>
<td></td>
<td></td>
<td></td>
<td>2,092</td>
<td></td>
<td></td>
<td></td>
<td>4,195</td>
<td></td>
<td></td>
<td></td>
<td>2,011</td>
<td></td>
<td></td>
<td>47.9</td>
<td>%</td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td>TOTAL REPORTABLE SEGMENTS</td>
<td></td>
<td>$</td>
<td>106,194</td>
<td></td>
<td></td>
<td>$</td>
<td>8,246</td>
<td></td>
<td></td>
<td>$</td>
<td>114,440</td>
<td></td>
<td></td>
<td>$</td>
<td>22,904</td>
<td></td>
<td></td>
<td>20.0</td>
<td>%</td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td>Eliminations / Other</td>
<td></td>
<td></td>
<td>722</td>
<td></td>
<td></td>
<td></td>
<td>(8,246</td>
<td>)</td>
<td></td>
<td></td>
<td>(7,524</td>
<td>)</td>
<td></td>
<td></td>
<td>(1,901</td>
<td>)</td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr>
<td>TOTAL IBM CONSOLIDATED</td>
<td></td>
<td>$</td>
<td>106,916</td>
<td></td>
<td></td>
<td>$</td>
<td>0</td>
<td></td>
<td></td>
<td>$</td>
<td>106,916</td>
<td></td>
<td></td>
<td>$</td>
<td>21,003</td>
<td></td>
<td></td>
<td>19.6</td>
<td>%</td>
</tr>
<tr>
<td colspan="20"></td>
</tr>
</tbody>
</table>
<table cellspacing="0">
<tbody>
<tr>
<td colspan="17">INTERNATIONAL BUSINESS MACHINES CORPORATION</td>
</tr>
<tr>
<td colspan="17">U.S. GAAP TO OPERATING RESULTS RECONCILIATION</td>
</tr>
<tr>
<td colspan="17">(Dollars in millions except per share amounts)</td>
</tr>
<tr>
<td colspan="17"></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="15">FOURTH-QUARTER 2012</td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">Acquisition-</td>
<td></td>
<td colspan="3">Retirement-</td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">Related</td>
<td></td>
<td colspan="3">Related</td>
<td></td>
<td colspan="3">Operating</td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3">GAAP</td>
<td></td>
<td colspan="3">Adjustments*</td>
<td></td>
<td colspan="3">Adjustments**</td>
<td></td>
<td colspan="3">(Non-GAAP)</td>
</tr>
<tr>
<td>Gross Profit</td>
<td></td>
<td>$</td>
<td>15,167</td>
<td></td>
<td></td>
<td>$</td>
<td>100</td>
<td></td>
<td></td>
<td>$</td>
<td>60</td>
<td></td>
<td></td>
<td>$</td>
<td>15,327</td>
<td></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td>Gross Profit Margin</td>
<td></td>
<td></td>
<td>51.8</td>
<td>%</td>
<td></td>
<td colspan="3">0.3Pts</td>
<td></td>
<td colspan="3">0.2Pts</td>
<td></td>
<td></td>
<td>52.3</td>
<td>%</td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td>S,G&amp;A</td>
<td></td>
<td></td>
<td>5,921</td>
<td></td>
<td></td>
<td></td>
<td>(91</td>
<td>)</td>
<td></td>
<td></td>
<td>(29</td>
<td>)</td>
<td></td>
<td></td>
<td>5,801</td>
<td></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td>R,D&amp;E</td>
<td></td>
<td></td>
<td>1,580</td>
<td></td>
<td></td>
<td></td>
<td>0</td>
<td></td>
<td></td>
<td></td>
<td>6</td>
<td></td>
<td></td>
<td></td>
<td>1,586</td>
<td></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td>Other (Income) &amp; Expense</td>
<td></td>
<td></td>
<td>(47</td>
<td>)</td>
<td></td>
<td></td>
<td>(7</td>
<td>)</td>
<td></td>
<td></td>
<td>0</td>
<td></td>
<td></td>
<td></td>
<td>(54</td>
<td>)</td>
</tr>
<tr>
<td colspan="17"></td>
</tr>
<tr>
<td>Total Expense &amp; Other (Income)</td>
<td></td>
<td></td>
<td>7,336</td>
<td></td>
<td></td>
<td></td>
<td>(98</td>
<td>)</td>
<td></td>
<td></td>
<td>(23</td>
<td>)</td>
<td></td>
<td></td>
<td>7,215</td>
<td></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td>Pre-Tax Income</td>
<td></td>
<td></td>
<td>7,831</td>
<td></td>
<td></td>
<td></td>
<td>198</td>
<td></td>
<td></td>
<td></td>
<td>83</td>
<td></td>
<td></td>
<td></td>
<td>8,112</td>
<td></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td>Pre-Tax Income Margin</td>
<td></td>
<td></td>
<td>26.7</td>
<td>%</td>
<td></td>
<td colspan="3">0.7Pts</td>
<td></td>
<td colspan="3">0.3Pts</td>
<td></td>
<td></td>
<td>27.7</td>
<td>%</td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td>Provision for Income Taxes***</td>
<td></td>
<td></td>
<td>1,998</td>
<td></td>
<td></td>
<td></td>
<td>(45</td>
<td>)</td>
<td></td>
<td></td>
<td>30</td>
<td></td>
<td></td>
<td></td>
<td>1,983</td>
<td></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td>Effective Tax Rate</td>
<td></td>
<td></td>
<td>25.5</td>
<td>%</td>
<td></td>
<td colspan="3">-1.2Pts</td>
<td></td>
<td colspan="3">0.1Pts</td>
<td></td>
<td></td>
<td>24.4</td>
<td>%</td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td>Net Income</td>
<td></td>
<td></td>
<td>5,833</td>
<td></td>
<td></td>
<td></td>
<td>243</td>
<td></td>
<td></td>
<td></td>
<td>53</td>
<td></td>
<td></td>
<td></td>
<td>6,129</td>
<td></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td>Net Income Margin</td>
<td></td>
<td></td>
<td>19.9</td>
<td>%</td>
<td></td>
<td colspan="3">0.8Pts</td>
<td></td>
<td colspan="3">0.2Pts</td>
<td></td>
<td></td>
<td>20.9</td>
<td>%</td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td>Diluted Earnings Per Share</td>
<td></td>
<td>$</td>
<td>5.13</td>
<td></td>
<td></td>
<td>$</td>
<td>0.21</td>
<td></td>
<td></td>
<td>$</td>
<td>0.05</td>
<td></td>
<td></td>
<td>$</td>
<td>5.39</td>
<td></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td colspan="17"></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="15">FOURTH-QUARTER 2011</td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">Acquisition-</td>
<td></td>
<td colspan="3">Retirement-</td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">Related</td>
<td></td>
<td colspan="3">Related</td>
<td></td>
<td colspan="3">Operating</td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3">GAAP</td>
<td></td>
<td colspan="3">Adjustments*</td>
<td></td>
<td colspan="3">Adjustments**</td>
<td></td>
<td colspan="3">(Non-GAAP)</td>
</tr>
<tr>
<td>Gross Profit</td>
<td></td>
<td>$</td>
<td>14,722</td>
<td></td>
<td></td>
<td>$</td>
<td>81</td>
<td></td>
<td></td>
<td></td>
<td>($10</td>
<td>)</td>
<td></td>
<td>$</td>
<td>14,793</td>
<td></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td>Gross Profit Margin</td>
<td></td>
<td></td>
<td>49.9</td>
<td>%</td>
<td></td>
<td colspan="3">0.3Pts</td>
<td></td>
<td colspan="3">-0.0Pts</td>
<td></td>
<td></td>
<td>50.2</td>
<td>%</td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td>S,G&amp;A</td>
<td></td>
<td></td>
<td>6,076</td>
<td></td>
<td></td>
<td></td>
<td>(82</td>
<td>)</td>
<td></td>
<td></td>
<td>2</td>
<td></td>
<td></td>
<td></td>
<td>5,996</td>
<td></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td>R,D&amp;E</td>
<td></td>
<td></td>
<td>1,555</td>
<td></td>
<td></td>
<td></td>
<td>0</td>
<td></td>
<td></td>
<td></td>
<td>23</td>
<td></td>
<td></td>
<td></td>
<td>1,578</td>
<td></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td>Other (Income) &amp; Expense</td>
<td></td>
<td></td>
<td>(44</td>
<td>)</td>
<td></td>
<td></td>
<td>(2</td>
<td>)</td>
<td></td>
<td></td>
<td>0</td>
<td></td>
<td></td>
<td></td>
<td>(46</td>
<td>)</td>
</tr>
<tr>
<td colspan="17"></td>
</tr>
<tr>
<td>Total Expense &amp; Other (Income)</td>
<td></td>
<td></td>
<td>7,448</td>
<td></td>
<td></td>
<td></td>
<td>(85</td>
<td>)</td>
<td></td>
<td></td>
<td>25</td>
<td></td>
<td></td>
<td></td>
<td>7,388</td>
<td></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td>Pre-Tax Income</td>
<td></td>
<td></td>
<td>7,274</td>
<td></td>
<td></td>
<td></td>
<td>166</td>
<td></td>
<td></td>
<td></td>
<td>(35</td>
<td>)</td>
<td></td>
<td></td>
<td>7,405</td>
<td></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td>Pre-Tax Income Margin</td>
<td></td>
<td></td>
<td>24.7</td>
<td>%</td>
<td></td>
<td colspan="3">0.6Pts</td>
<td></td>
<td colspan="3">-0.1Pts</td>
<td></td>
<td></td>
<td>25.1</td>
<td>%</td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td>Provision for Income Taxes***</td>
<td></td>
<td></td>
<td>1,784</td>
<td></td>
<td></td>
<td></td>
<td>47</td>
<td></td>
<td></td>
<td></td>
<td>(24</td>
<td>)</td>
<td></td>
<td></td>
<td>1,808</td>
<td></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td>Effective Tax Rate</td>
<td></td>
<td></td>
<td>24.5</td>
<td>%</td>
<td></td>
<td colspan="3">0.1Pts</td>
<td></td>
<td colspan="3">-0.2Pts</td>
<td></td>
<td></td>
<td>24.4</td>
<td>%</td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td>Net Income</td>
<td></td>
<td></td>
<td>5,490</td>
<td></td>
<td></td>
<td></td>
<td>119</td>
<td></td>
<td></td>
<td></td>
<td>(12</td>
<td>)</td>
<td></td>
<td></td>
<td>5,597</td>
<td></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td>Net Income Margin</td>
<td></td>
<td></td>
<td>18.6</td>
<td>%</td>
<td></td>
<td colspan="3">0.4Pts</td>
<td></td>
<td colspan="3">-0.0Pts</td>
<td></td>
<td></td>
<td>19.0</td>
<td>%</td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td>Diluted Earnings Per Share</td>
<td></td>
<td>$</td>
<td>4.62</td>
<td></td>
<td></td>
<td>$</td>
<td>0.10</td>
<td></td>
<td></td>
<td></td>
<td>($0.01</td>
<td>)</td>
<td></td>
<td>$</td>
<td>4.71</td>
<td></td>
</tr>
</tbody>
</table>
<table cellspacing="0">
<tbody>
<tr>
<td>* Includes amortization of acquired intangible assets and other acquisition-related charges.</td>
</tr>
<tr>
<td>** Includes retirement-related items driven by changes to plan assets and liabilities primarily related to market performance.</td>
</tr>
<tr>
<td>*** Tax impact on operating (non-GAAP) pre-tax income is calculated under the same accounting principles applied to the GAAP pre-tax income which employs an annual effective tax rate method to the results.</td>
</tr>
<tr>
<td></td>
</tr>
</tbody>
</table>
<table cellspacing="0">
<tbody>
<tr>
<td colspan="17">INTERNATIONAL BUSINESS MACHINES CORPORATION</td>
</tr>
<tr>
<td colspan="17">U.S. GAAP TO OPERATING RESULTS RECONCILIATION</td>
</tr>
<tr>
<td colspan="17">(Dollars in millions except per share amounts)</td>
</tr>
<tr>
<td colspan="17"></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="15">TWELVE-MONTHS 2012</td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">Acquisition-</td>
<td></td>
<td colspan="3">Retirement-</td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">Related</td>
<td></td>
<td colspan="3">Related</td>
<td></td>
<td colspan="3">Operating</td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3">GAAP</td>
<td></td>
<td colspan="3">Adjustments*</td>
<td></td>
<td colspan="3">Adjustments**</td>
<td></td>
<td colspan="3">(Non-GAAP)</td>
</tr>
<tr>
<td>Gross Profit</td>
<td></td>
<td>$</td>
<td>50,298</td>
<td></td>
<td></td>
<td>$</td>
<td>376</td>
<td></td>
<td></td>
<td>$</td>
<td>264</td>
<td></td>
<td></td>
<td>$</td>
<td>50,938</td>
<td></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td>Gross Profit Margin</td>
<td></td>
<td></td>
<td>48.1</td>
<td>%</td>
<td></td>
<td colspan="3">0.4Pts</td>
<td></td>
<td colspan="3">0.3Pts</td>
<td></td>
<td></td>
<td>48.7</td>
<td>%</td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td>S,G&amp;A</td>
<td></td>
<td></td>
<td>23,553</td>
<td></td>
<td></td>
<td></td>
<td>(349</td>
<td>)</td>
<td></td>
<td></td>
<td>(294</td>
<td>)</td>
<td></td>
<td></td>
<td>22,910</td>
<td></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td>R,D&amp;E</td>
<td></td>
<td></td>
<td>6,302</td>
<td></td>
<td></td>
<td></td>
<td>0</td>
<td></td>
<td></td>
<td></td>
<td>20</td>
<td></td>
<td></td>
<td></td>
<td>6,322</td>
<td></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td>Other (Income) &amp; Expense</td>
<td></td>
<td></td>
<td>(843</td>
<td>)</td>
<td></td>
<td></td>
<td>(13</td>
<td>)</td>
<td></td>
<td></td>
<td>0</td>
<td></td>
<td></td>
<td></td>
<td>(857</td>
<td>)</td>
</tr>
<tr>
<td colspan="17"></td>
</tr>
<tr>
<td>Total Expense &amp; Other (Income)</td>
<td></td>
<td></td>
<td>28,396</td>
<td></td>
<td></td>
<td></td>
<td>(363</td>
<td>)</td>
<td></td>
<td></td>
<td>(274</td>
<td>)</td>
<td></td>
<td></td>
<td>27,760</td>
<td></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td>Pre-Tax Income</td>
<td></td>
<td></td>
<td>21,902</td>
<td></td>
<td></td>
<td></td>
<td>739</td>
<td></td>
<td></td>
<td></td>
<td>538</td>
<td></td>
<td></td>
<td></td>
<td>23,179</td>
<td></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td>Pre-Tax Income Margin</td>
<td></td>
<td></td>
<td>21.0</td>
<td>%</td>
<td></td>
<td colspan="3">0.7Pts</td>
<td></td>
<td colspan="3">0.5Pts</td>
<td></td>
<td></td>
<td>22.2</td>
<td>%</td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td>Provision for Income Taxes***</td>
<td></td>
<td></td>
<td>5,298</td>
<td></td>
<td></td>
<td></td>
<td>98</td>
<td></td>
<td></td>
<td></td>
<td>156</td>
<td></td>
<td></td>
<td></td>
<td>5,552</td>
<td></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td>Effective Tax Rate</td>
<td></td>
<td></td>
<td>24.2</td>
<td>%</td>
<td></td>
<td colspan="3">-0.4Pts</td>
<td></td>
<td colspan="3">0.1Pts</td>
<td></td>
<td></td>
<td>24.0</td>
<td>%</td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td>Net Income</td>
<td></td>
<td></td>
<td>16,604</td>
<td></td>
<td></td>
<td></td>
<td>641</td>
<td></td>
<td></td>
<td></td>
<td>381</td>
<td></td>
<td></td>
<td></td>
<td>17,627</td>
<td></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td>Net Income Margin</td>
<td></td>
<td></td>
<td>15.9</td>
<td>%</td>
<td></td>
<td colspan="3">0.6Pts</td>
<td></td>
<td colspan="3">0.4Pts</td>
<td></td>
<td></td>
<td>16.9</td>
<td>%</td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td>Diluted Earnings Per Share</td>
<td></td>
<td>$</td>
<td>14.37</td>
<td></td>
<td></td>
<td>$</td>
<td>0.55</td>
<td></td>
<td></td>
<td>$</td>
<td>0.33</td>
<td></td>
<td></td>
<td>$</td>
<td>15.25</td>
<td></td>
</tr>
<tr>
<td colspan="17"></td>
</tr>
<tr>
<td colspan="17"></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="15">TWELVE-MONTHS 2011</td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">Acquisition-</td>
<td></td>
<td colspan="3">Retirement-</td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">Related</td>
<td></td>
<td colspan="3">Related</td>
<td></td>
<td colspan="3">Operating</td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3">GAAP</td>
<td></td>
<td colspan="3">Adjustments*</td>
<td></td>
<td colspan="3">Adjustments**</td>
<td></td>
<td colspan="3">(Non-GAAP)</td>
</tr>
<tr>
<td>Gross Profit</td>
<td></td>
<td>$</td>
<td>50,138</td>
<td></td>
<td></td>
<td>$</td>
<td>341</td>
<td></td>
<td></td>
<td>$</td>
<td>2</td>
<td></td>
<td></td>
<td>$</td>
<td>50,481</td>
<td></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td>Gross Profit Margin</td>
<td></td>
<td></td>
<td>46.9</td>
<td>%</td>
<td></td>
<td colspan="3">0.3Pts</td>
<td></td>
<td colspan="3">0.0Pts</td>
<td></td>
<td></td>
<td>47.2</td>
<td>%</td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td>S,G&amp;A</td>
<td></td>
<td></td>
<td>23,594</td>
<td></td>
<td></td>
<td></td>
<td>(309</td>
<td>)</td>
<td></td>
<td></td>
<td>(13</td>
<td>)</td>
<td></td>
<td></td>
<td>23,272</td>
<td></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td>R,D&amp;E</td>
<td></td>
<td></td>
<td>6,258</td>
<td></td>
<td></td>
<td></td>
<td>0</td>
<td></td>
<td></td>
<td></td>
<td>88</td>
<td></td>
<td></td>
<td></td>
<td>6,345</td>
<td></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td>Other (Income) &amp; Expense</td>
<td></td>
<td></td>
<td>(20</td>
<td>)</td>
<td></td>
<td></td>
<td>(25</td>
<td>)</td>
<td></td>
<td></td>
<td>0</td>
<td></td>
<td></td>
<td></td>
<td>(45</td>
<td>)</td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td>Total Expense &amp; Other (Income)</td>
<td></td>
<td></td>
<td>29,135</td>
<td></td>
<td></td>
<td></td>
<td>(334</td>
<td>)</td>
<td></td>
<td></td>
<td>74</td>
<td></td>
<td></td>
<td></td>
<td>28,875</td>
<td></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td>Pre-Tax Income</td>
<td></td>
<td></td>
<td>21,003</td>
<td></td>
<td></td>
<td></td>
<td>675</td>
<td></td>
<td></td>
<td></td>
<td>(72</td>
<td>)</td>
<td></td>
<td></td>
<td>21,605</td>
<td></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td>Pre-Tax Income Margin</td>
<td></td>
<td></td>
<td>19.6</td>
<td>%</td>
<td></td>
<td colspan="3">0.6Pts</td>
<td></td>
<td colspan="3">-0.1Pts</td>
<td></td>
<td></td>
<td>20.2</td>
<td>%</td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td>Provision for Income Taxes***</td>
<td></td>
<td></td>
<td>5,148</td>
<td></td>
<td></td>
<td></td>
<td>179</td>
<td></td>
<td></td>
<td></td>
<td>(40</td>
<td>)</td>
<td></td>
<td></td>
<td>5,287</td>
<td></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td>Effective Tax Rate</td>
<td></td>
<td></td>
<td>24.5</td>
<td>%</td>
<td></td>
<td colspan="3">0.1Pts</td>
<td></td>
<td colspan="3">-0.1Pts</td>
<td></td>
<td></td>
<td>24.5</td>
<td>%</td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td>Net Income</td>
<td></td>
<td></td>
<td>15,855</td>
<td></td>
<td></td>
<td></td>
<td>495</td>
<td></td>
<td></td>
<td></td>
<td>(32</td>
<td>)</td>
<td></td>
<td></td>
<td>16,318</td>
<td></td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td>Net Income Margin</td>
<td></td>
<td></td>
<td>14.8</td>
<td>%</td>
<td></td>
<td colspan="3">0.5Pts</td>
<td></td>
<td colspan="3">-0.0Pts</td>
<td></td>
<td></td>
<td>15.3</td>
<td>%</td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>
<tr>
<td>Diluted Earnings Per Share</td>
<td></td>
<td>$</td>
<td>13.06</td>
<td></td>
<td></td>
<td>$</td>
<td>0.41</td>
<td></td>
<td></td>
<td></td>
<td>($0.03</td>
<td>)</td>
<td></td>
<td>$</td>
<td>13.44</td>
<td></td>
</tr>
</tbody>
</table>
<p>* Includes amortization of acquired intangible assets and other acquisition-related charges.<br />
** Includes retirement-related items driven by changes to plan assets and liabilities primarily related to market performance.<br />
*** Tax impact on operating (non-GAAP) pre-tax income is calculated under the same accounting principles applied to the GAAP pre-tax income which employs an annual effective tax rate method to the results.</em></p>
]]></content:encoded>
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		</item>
		<item>
		<title>IBM&#8217;s Watson Cursed Like a Sailor After Being Taught the Urban Dictionary</title>
		<link>http://www.webpronews.com/ibms-watson-cursed-like-a-sailor-after-being-taught-the-urban-dictionary-2013-01</link>
		<comments>http://www.webpronews.com/ibms-watson-cursed-like-a-sailor-after-being-taught-the-urban-dictionary-2013-01#comments</comments>
		<pubDate>Fri, 11 Jan 2013 16:18:50 +0000</pubDate>
		<dc:creator>Josh Wolford</dc:creator>
				<category><![CDATA[Technology]]></category>
		<category><![CDATA[AI]]></category>
		<category><![CDATA[Artificial Intelligence]]></category>
		<category><![CDATA[Computers]]></category>
		<category><![CDATA[IBM]]></category>
		<category><![CDATA[supercomputers]]></category>
		<category><![CDATA[urban dictionary]]></category>
		<category><![CDATA[Watson]]></category>

		<guid isPermaLink="false">http://www.webpronews.com/?p=210824</guid>
		<description><![CDATA[It&#8217;s a fact that Watson, IBM&#8217;s massive AI project, is smarter than the average human. I mean, it kicked Ken Jennings&#8217; ass on Jeopardy that one time. &#8220;Smart,&#8221; in that respect, meant the ability to pull knowledge from terabytes worth &#8230;]]></description>
			<content:encoded><![CDATA[<p>It&#8217;s a fact that Watson, IBM&#8217;s massive AI project, is smarter than the average human. I mean, it kicked Ken Jennings&#8217; ass on Jeopardy that one time. &#8220;Smart,&#8221; in that respect, meant the ability to pull knowledge from terabytes worth of Wikipedia data based on verbal clues. </p>
<p>But Ken Jennings (and you and me) has Watson beat in one measure of intelligence: human language. Once that fact no longer holds true, well, we&#8217;re all in a hell of a lot of trouble. </p>
<p>Nevertheless, IBM is trying to improve Watson&#8217;s human language prowess. And to do that, Watson needs to understand how humans talk &#8211; how they <em>really</em> talk. I&#8217;m talking about slang, of course. People simply don&#8217;t realize just how complicated human language really is. Teaching Watson proper and direct English is nowhere near good enough to turn it into a fully functional conversation partner. I mean, how the hell is it going to know how to respond to YOLO?</p>
<p>So, to work on that slang element of human language, IBM researchers decided to teach Watson the Urban Dictionary &#8211; you know, the online database of anything and everything human begins say &#8211; from the inane to the foul. </p>
<p>Apparently, this led to a problem. Watson developed a mouth like a sailor. From Fortune:</p>
<blockquote><p><em>Watson couldn&#8217;t distinguish between polite language and profanity &#8212; which the Urban Dictionary is full of. Watson picked up some bad habits from reading Wikipedia as well. In tests it even used the word &#8220;bullshit&#8221; in an answer to a researcher&#8217;s query.</p>
<p>Ultimately, Brown&#8217;s 35-person team developed a filter to keep Watson from swearing and scraped the Urban Dictionary from its memory. But the trial proves just how thorny it will be to get artificial intelligence to communicate naturally. Brown is now training Watson as a diagnostic tool for hospitals. No knowledge of OMG required.</em></p></blockquote>
<p>Suck it, Trebek. </p>
<p>[<a href="http://tech.fortune.cnn.com/2013/01/07/ibm-watson-slang/">Fortune</a> via <a href="http://www.theatlantic.com/technology/archive/2013/01/ibms-watson-memorized-the-entire-urban-dictionary-then-his-overlords-had-to-delete-it/267047/">The Atlantic</a>]</p>
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		</item>
		<item>
		<title>IBM To Acquire StoredIQ To Help Companies With Big Data</title>
		<link>http://www.webpronews.com/ibm-to-acquire-storediq-to-help-companies-with-big-data-2012-12</link>
		<comments>http://www.webpronews.com/ibm-to-acquire-storediq-to-help-companies-with-big-data-2012-12#comments</comments>
		<pubDate>Wed, 19 Dec 2012 16:16:38 +0000</pubDate>
		<dc:creator>Chris Crum</dc:creator>
				<category><![CDATA[Business]]></category>
		<category><![CDATA[Acquisitions ]]></category>
		<category><![CDATA[Big Data]]></category>
		<category><![CDATA[IBM]]></category>
		<category><![CDATA[StoredIQ]]></category>

		<guid isPermaLink="false">http://www.webpronews.com/?p=208216</guid>
		<description><![CDATA[IBM announced today that it has entered an agreement to acquire StoredIQ, which the company says will help it advance its efforts to help clients derive value from big data and respond more efficiently to litigation and regulations. The company &#8230;<br /><a href="http://aj.600z.com/aj/136480/0/cc?z=1"><img src="http://aj.600z.com/aj/136480/0/vc?z=1&dim=105992&kw=&click=" width="615" height="80" border="0"></a>]]></description>
			<content:encoded><![CDATA[<p>IBM announced today that it has entered an agreement to acquire <a href="http://www.storediq.com/">StoredIQ</a>, which the company says will help it advance its efforts to help clients derive value from big data and respond more efficiently to litigation and regulations. </p>
<p>The company is based in Austin. </p>
<p>&#8220;CIOs and general counsels are overwhelmed by volumes of information that exceed their budgets and their capacity to meet legal requirements,&#8221; said Deidre Paknad, vice president of Information Lifecycle Governance at IBM. &#8220;With this acquisition, IBM adds to its unique strengths as a provider able to help CIOs and attorneys rapidly drive out excess information cost and mitigate legal risks while improving information utility for the business.&#8221; </p>
<p>&#8220;Together, IBM and StoredIQ can empower organizations to more efficiently use and govern their unstructured data to increase its value and eliminate unnecessary cost and risk,&#8221; said StoredIQ CEO Phil Myers. &#8220;IBM and StoredIQ are longstanding partners with existing integration between IBM&#8217;s Information Lifecycle Governance suite and StoredIQ&#8217;s active data management software.&#8221;</p>
<p>Terms of the deal were not disclosed. IBM expects it to close in the first quarter of 2013. </p>
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		<item>
		<title>AT&amp;T and IBM Announce a Cloud Service For Private Networks</title>
		<link>http://www.webpronews.com/att-and-ibm-announce-a-cloud-service-for-private-networks-2012-10</link>
		<comments>http://www.webpronews.com/att-and-ibm-announce-a-cloud-service-for-private-networks-2012-10#comments</comments>
		<pubDate>Wed, 10 Oct 2012 13:40:33 +0000</pubDate>
		<dc:creator>Sean Patterson</dc:creator>
				<category><![CDATA[Business]]></category>
		<category><![CDATA[ATT]]></category>
		<category><![CDATA[cloud service]]></category>
		<category><![CDATA[IBM]]></category>
		<category><![CDATA[VPN]]></category>

		<guid isPermaLink="false">http://www.webpronews.com/?p=196586</guid>
		<description><![CDATA[This week AT&#038;T and IBM announced that they will be teaming up to provide a &#8220;network-enabled&#8221; cloud service for private networks. The product will be promoted to Fortune 1000 companies across the world as an option for companies that need &#8230;]]></description>
			<content:encoded><![CDATA[<p>This week <a href="http://www.webpronews.com/tag/att">AT&#038;T</a> and <a href="http://www.webpronews.com/tag/ibm">IBM</a> announced that they will be teaming up to provide a &#8220;network-enabled&#8221; cloud service for private networks.  The product will be promoted to Fortune 1000 companies across the world as an option for companies that need both cloud solutions and a high level of security.  The service will be offered starting in &#8220;early 2013.&#8221;</p>
<p>AT&#038;T&#8217;s virtual private networking and IBM&#8217;s SmartCloud Enterprise+ services will be combined for this new product.  The companies claims that the product will tightly integrate the security protections of both.  The goal is for customers to be able to quickly move data from their own data centers to the new cloud service.  Those companies will then gain flexibility while still having secure data that can move between all types of devices, such as smartphones, tablets, and retail kiosks.</p>
<p>“As more organizations realize that cloud can be secure, easily managed, and a key part of their business strategy, cloud will quickly evolve as a tool for innovation rather than just for infrastructure,” said Erich Clementi, senior vice president of IBM&#8217;s Global Technology Services division.  “We believe this new service from two recognized leaders in cloud computing provides a compelling way for large organizations to exploit cloud’s transformational power.”</p>
<p>The financial terms of the agreement between AT&#038;T and IBM have not yet been released.</p>
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		<title>IBM To Get Social Solutions With Kenexa Acquisition</title>
		<link>http://www.webpronews.com/ibm-to-get-social-solutions-with-kenexa-acquisition-2012-08</link>
		<comments>http://www.webpronews.com/ibm-to-get-social-solutions-with-kenexa-acquisition-2012-08#comments</comments>
		<pubDate>Mon, 27 Aug 2012 14:35:01 +0000</pubDate>
		<dc:creator>Chris Crum</dc:creator>
				<category><![CDATA[Business]]></category>
		<category><![CDATA[Acquisitions ]]></category>
		<category><![CDATA[IBM]]></category>
		<category><![CDATA[Kenexa]]></category>

		<guid isPermaLink="false">http://www.webpronews.com/?p=188936</guid>
		<description><![CDATA[IBM announced today that it has entered into an agreement to acquire Kenexa, a social recruiting and HR solutions company. The price is $46 per share, or about $1.3 billion. IBM says the acquisition will help it bolster its social &#8230;]]></description>
			<content:encoded><![CDATA[<p>IBM announced today that it has entered into an agreement to acquire Kenexa, a social recruiting and HR solutions company. The price is $46 per share, or about $1.3 billion.</p>
<p>IBM says the acquisition will help it bolster its social business capabilities and gain &#8220;actionable insights&#8221; from &#8220;enormous&#8221; streams of data generated by social networks. Kenexa supports over 8,900 customers across the financial services, pharmaceuticals, retail and consumer industries, including over half of the Fortune 500. It has operations in 21 countries around the world. </p>
<p>Alistair Rennie, GM, social business at IBM said, &#8220;Every company, across every business operation, is looking to tap into the power of social networking to transform the way they work, collaborate and out innovate their competitors. IBM is uniquely positioned to help clients generate real returns from their social business investments, while helping them gain intelligence into the data being generated in these networks to be more competitive in their markets.&#8221;</p>
<p>&#8220;The customer is the big winner in all this because the combination of our two organizations will deliver more business outcomes than ever before,&#8221; said Kenexa CEO Rudy Karsan. &#8220;Together, Kenexa and IBM will be unmatched in the industry, offering solutions that extend from strategy to the technology platform to the delivery of services for clients.&#8221;</p>
<p>IBM expects the deal to close in the fourth quarter of this year. It has been approved by Kenexa&#8217;s Board, which is recommending that shareholders do the same. </p>
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		<title>3D Printer Made Even More Awesome With Robot Arm</title>
		<link>http://www.webpronews.com/3d-printer-made-even-more-awesome-with-robot-arm-2012-08</link>
		<comments>http://www.webpronews.com/3d-printer-made-even-more-awesome-with-robot-arm-2012-08#comments</comments>
		<pubDate>Fri, 17 Aug 2012 16:25:54 +0000</pubDate>
		<dc:creator>Zach Walton</dc:creator>
				<category><![CDATA[Technology]]></category>
		<category><![CDATA[3D printers]]></category>
		<category><![CDATA[3d printing]]></category>
		<category><![CDATA[IBM]]></category>
		<category><![CDATA[Open Source]]></category>
		<category><![CDATA[Robots]]></category>

		<guid isPermaLink="false">http://www.webpronews.com/?p=187602</guid>
		<description><![CDATA[3D printers are about to enter the mainstream. Everybody will be able to afford one from manufacturers like Makerbot and the like. Of course, like with PC enthusiasts, true joy comes from building your own 3D printer. Meet Dane Kouttron, &#8230;]]></description>
			<content:encoded><![CDATA[<p>3D printers are about to enter the mainstream. Everybody will be able to afford one from manufacturers like Makerbot and the like. Of course, like with PC enthusiasts, true joy comes from building your own 3D printer. </p>
<p>Meet Dane Kouttron, he built a 3D printer with a twist. He repurposed an <a href="http://iel.ucdavis.edu/projects/robot/IBM7575.html">IBM 7575 SCARA Robot Arm</a> into a 3D printer. This allows him to create objects much larger than cheaper 3D printers can make. It&#8217;s all due to the incredible reach of the robot arm. Objects created with Kouttron&#8217;s printer can be sized to a maximum of 25&#8243;x12&#8243;x6.5&#8243;. A commenter on the Vimeo page says that it&#8217;s twice the size of the Makerbot&#8217;s maximum output.</p>
<p>Check out the giant 3D printer in action: </p>
<p><iframe src="http://player.vimeo.com/video/44294489?title=0&amp;byline=0&amp;portrait=0&amp;color=12e0be" width="616" height="347" frameborder="0" webkitAllowFullScreen mozallowfullscreen allowFullScreen></iframe>
<p><a href="http://vimeo.com/44294489">Scara Robot 3D ABS Printer</a> from <a href="http://vimeo.com/user3733658">Dane Kouttron</a> on <a href="http://vimeo.com">Vimeo</a>.</p>
<p>The best part is that you can make this very 3D printer yourself if you have the parts. I&#8217;m sure most of you have an old IMB robot arm lying around the house somewhere so it should be an easy build. All joking aside, you can find <a href="http://transistor-man.com/3dprintbot.html">details on the build, parts and software required</a> for this beauty over at Kouttron&#8217;s Web site. </p>
<p>[h/t: <a href="http://blog.makezine.com/2012/08/17/3d-printer-made-with-a-scara-arm/">Make</a>] [<a href="http://transistor-man.com/PhotoSet/3dprinter/index.html">Image Credit</a>]</p>
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		<title>IBM To Acquire Solid State Storage Company TMS</title>
		<link>http://www.webpronews.com/ibm-to-acquire-solid-state-storage-company-tms-2012-08</link>
		<comments>http://www.webpronews.com/ibm-to-acquire-solid-state-storage-company-tms-2012-08#comments</comments>
		<pubDate>Thu, 16 Aug 2012 20:19:19 +0000</pubDate>
		<dc:creator>Chris Crum</dc:creator>
				<category><![CDATA[Business]]></category>
		<category><![CDATA[Acquisitions ]]></category>
		<category><![CDATA[IBM]]></category>
		<category><![CDATA[Solid State Storage]]></category>
		<category><![CDATA[storage]]></category>
		<category><![CDATA[Texas Memory Systems]]></category>
		<category><![CDATA[TMS]]></category>

		<guid isPermaLink="false">http://www.webpronews.com/?p=187466</guid>
		<description><![CDATA[IBM announced today that it plans to buy Texas Memory Systems (TMS), a Houston-based solid state storage company. TMS sells a family of shared rackmount systems and PICIe cards called RamSan, which are designed to help companies improve performance and &#8230;]]></description>
			<content:encoded><![CDATA[<p>IBM announced today that it plans to buy Texas Memory Systems (TMS), a Houston-based solid state storage company. </p>
<p>TMS sells a family of shared rackmount systems and PICIe cards called <a href="http://www.ramsan.com/products">RamSan</a>, which are designed to help companies improve performance and reduce server sprawl, power consumption, cooling and floor space requirements. </p>
<p>&#8220;“The TMS strategy and solution set align well with our Smarter Computing approach to information technology by helping clients realize increased performance and efficiencies at lower costs,” said Brian Truskowski, GM, Systems Storage and Networking at IBM. “Solid state technology, in particular, is a critical component of our new Smarter Storage approach to the design and deployment of storage infrastructures, and part of a holistic approach that exploits flash in conjunction with disk and tape technologies to solve complex problems.”</p>
<p>TMS CEO Holly Frost said, “IBM understands the positive and dramatic impact that solid state technology can have on storage and server infrastructures, and once the acquisition is complete we look forward to advancing the technology even further. With the global reach of IBM, we expect to grow the engineering staff and product lines much faster than we could before.&#8221;</p>
<p>Terms of the deal were not disclosed, though IBM expects it to close later this year. TMS has about 100 people on staff. </p>
<p>The amount of solid state storage solutions being shipped to the enterprise is expected to reach nearly 3 exabytes by 2016 (IDC). </p>
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		<title>IBM&#8217;s New Augmented Reality App Will Track Your Grocery Shopping</title>
		<link>http://www.webpronews.com/ibms-new-augmented-reality-app-will-track-your-grocery-shopping-2012-07</link>
		<comments>http://www.webpronews.com/ibms-new-augmented-reality-app-will-track-your-grocery-shopping-2012-07#comments</comments>
		<pubDate>Mon, 02 Jul 2012 16:55:38 +0000</pubDate>
		<dc:creator>Sean Patterson</dc:creator>
				<category><![CDATA[Technology]]></category>
		<category><![CDATA[Groceries]]></category>
		<category><![CDATA[IBM]]></category>
		<category><![CDATA[Tracking]]></category>
		<category><![CDATA[Tracking Users]]></category>

		<guid isPermaLink="false">http://www.webpronews.com/?p=178619</guid>
		<description><![CDATA[If you simply can&#8217;t get enough targeted advertising into your life, IBM&#8217;s new augmented reality mobile shopping app is probably for you. IBM research scientists today announced the app, which will allow customers to scan store shelves with their smartphone &#8230;]]></description>
			<content:encoded><![CDATA[<p>If you simply can&#8217;t get enough targeted advertising into your life, IBM&#8217;s new augmented reality mobile shopping app is probably for you.  IBM research scientists today announced the app, which will allow customers to scan store shelves with their smartphone to receive coupons and recommendations on the spot.  It&#8217;s the modern version of the grocery store card.</p>
<p>IBM envisions customers downloading the app as they enter a store, then creating a profile based on their phone number or store loyalty card.  The app will then allow customers to enter some personal information, such as whether they have specific food allergies, whether they care about biodegradable packaging, or whether they have other dietary needs, such as kosher foods.  From there, as customers point the camera of their smartphone at various products, an overlay on the screen will provide informantion about price, ingredients, and possible discounts.  Also, social networks can be integrated into results, in case customers want to know what types of food their friends and family &#8220;Like.&#8221;</p>
<p>“In the age of social media, consumer expectations are soaring and people want information and advice about the products they&#8217;re going to buy,” said Sima Nadler, retail lead at IBM Research.  “By closing the gap between the online and in-store shopping experience, marketers can appeal to the individual needs of consumers and keep them coming back.”</p>
<p>IBM is promising to increase retailers&#8217; in-store traffic with the technology, stating that the targeted marketing the app provides could help retailers retain customers.  IBM even suggests that the app could be used to up-sell or cross-sell products to customers right as they are shopping.</p>
<p>The researchers at IBM have provided the infographic below that shows exactly how the app will work, why they believe retailers should be excited about it, and what they envision the app&#8217;s effect will be:</p>
<p><a href="http://cdn.ientry.com/sites/webpronews/pictures/ibmaugmentedrealityinfographic.jpg"><img src="http://cdn.ientry.com/sites/webpronews/pictures/ibmaugmentedrealityinfographic_616.jpg" alt="How IBM's augmented shopping will work" /></a></p>
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