January 26, 2007 |
IBM Corp. is spinning off its printing division into a new company that Japan's Ricoh Co. will control. The move is part of IBM's continuing efforts to pare sideline businesses and focus on more profitable segments of the technology industry. Ricoh will pay Armonk, N.Y.-based IBM $725 million in cash upfront and an unspecified amount later. Ricoh initially will own 51% of the new company, InfoPrint Solutions Co., and will take full ownership within three years.
January 19, 2007 |
IBM Corp.'s fourth-quarter profit rose 11% and beat Wall Street expectations Thursday, and IBM also delivered a blockbuster figure in services contract signings, an important measure of future revenue. In the last three months of 2006, IBM earned $3.54 billion, $2.31 a share, on revenue of $26.3 billion. The numbers were boosted 6 cents a share by a lower tax rate and 5 cents a share from gains related to discontinued operations.
January 17, 2007 |
The Supreme Court on Tuesday refused to consider an appeal brought by a group of IBM Corp. employees who accused the company of age discrimination when it altered its pension plan. The lawsuit could have cost the company $1.4 billion. Kathi Cooper, a former IBM employee, served as the lead plaintiff in a class-action suit brought on behalf of 250,000 current and former IBM workers.
December 21, 2006 |
IBM Corp. is cutting off stock option grants to its directors but doubling their cash pay, calling the move an improvement in its governance practices. The decision, disclosed in a Securities and Exchange Commission filing Wednesday, takes effect Jan. 1. Directors who were not IBM executives had been getting options for 4,000 shares plus a $100,000 retainer -- at least 60% of which had to be used to buy IBM stock on the open market.
December 8, 2006 |
Russia's Interior Ministry accused executives of IBM Corp. on Thursday of stealing money from the country's $57-billion pension fund. IBM local executives conspired with others from the pension fund and two software companies to rig auctions and embezzle some of the 1 billion rubles, or $38 million, allocated to the fund for new computers, the ministry said on its website. It didn't identify the executives or say how much was stolen.
October 24, 2006 |
IBM Corp. alleged in two lawsuits Monday that important components of Amazon.com Inc.'s massive retailing website were developed and patented many years ago at IBM. Amazon, which this year will sell $10 billion worth of goods including books, CDs, pet supplies and jewelry, is accused of infringing five IBM patents. IBM says the technologies covered by the patents govern how the site recommends products to customers, serves up advertising and stores data.
October 18, 2006 |
IBM Corp. handily topped Wall Street forecasts for the third quarter, with revenue growing 5% on strong sales of software and hardware. The quarter's net profit of $2.22 billion marked a 50% improvement from a year earlier, thanks largely to a lower tax bill. Net income for the three months ended Sept. 30 amounted to $1.45 a share. In the same period last year, IBM earned $1.
August 24, 2006 |
With revenue growth sluggish at IBM Corp., Big Blue is buying its way to getting bigger. The company's recent acquisition roll continued Wednesday with a deal to spend $1.3 billion in cash for Internet Security Systems Inc., which performs network monitoring and analysis services for companies. The deal values Internet Security Systems at $28 a share, an 8% premium over its $26 closing price Tuesday.
August 8, 2006 |
IBM Corp. did not commit age discrimination when it changed its pension coverage in the 1990s, a federal appeals court ruled Monday in an influential case that Big Blue had agreed to settle for as much as $1.4 billion if it had lost the appeal. The case involved 140,000 older employees who were affected when IBM converted to a so-called cash-balance plan, which gives workers virtual accounts that can be cashed out for a lump sum when they leave the company.