UPDATE 1-Colabor Q3 profit rises on buyouts
Third-quarter net income rose to C$3.1 million, or 14
Canadian cents a share, from C$1.8 million, or 8 Canadian cents
a share, last year.Total sales for the period ended September 10 rose 38
percent to C$324.8 million.Acquisitions contributed C$83.0 million to quarterly sales.Shares of the Boucherville, Quebec-based closed at C$9.27 on
Monday on the Toronto Stock Exchange.
UPDATE 4-IBM’s Q3 disappoints, stock drops
* Stock dips after-hours as economy worries weighBy Noel RandewichSAN FRANCISCO, Oct 17 (Reuters) - IBM’s quarterly results failed to impress investors used to a stellar showing
from Big Blue, adding to concerns about lackluster corporate IT
spending and dragging its stock down more than 3 percent.The company’s earnings beat forecasts and it increased its
2011 earnings-per-share outlook but it faced a high hurdle
after recent strong reports from Oracle and Accenture , and analysts focused on slower expansion in key
regions and businesses.Further stoking worries about IT spending, business
software maker VMware Inc posted quarterly profit above
expectations but warned of uncertainty among some of its
corporate customers in Europe.”We have seen a bit more scrutiny and higher levels of
approval required. Particularly with larger deals where they
would go for CFO and CEO approval, where in the past we may not
have seen those approvals to be necessary,” said VMWare Chief
Financial Officer Mark Peeking.IBM, an information technology hardware bellwether with a
global clientele, said total services signings — an indicator
of future growth — climbed to $12.3 billion in the third
quarter, in line with expectations.”The growth rates IBM experienced in each of the regions —
Americas, Europe and Asia — are all decelerating and the
public sector is exhibiting no growth,” said Shebly Seyrafi, an
analyst at FBN Securities. “I wouldn’t say we’re falling off a
cliff, but there is a slowing in IT spending.”Revenue rose 8 percent to $26.16 billion, marginally softer
than the average forecast of $26.26 billion.Buttressed by recurring revenue that helps keep IBM’s
results steady in strong and weak economies, its shares have
outperformed the market and hit a record high on Friday. They
are up about 28 percent this year versus the Standard & Poor’s
500 index’s 4 percent dip.On Monday, International Business Machines Corp’s stock
fell 3.7 percent to $179.70 in extended trade after closing
down 2.1 percent on the New York Stock Exchange.”The company exceeded published expectations, but the
underlying expectations were even higher,” Annex Research
analyst Bob Djurdjevic said. “Investors who have been very
bullish on IBM are probably taking some profits now.”RISING CLOUDU.S. economic concerns and a worsening European financial
crisis have hurt consumer demand. Companies such as IBM that
sell hardware and software for data centers powering the
Internet have remained resilient.IBM said revenue from cloud computing in the first nine
months of this year was twice as much as in full-year 2010.Adjusted for currency, IBM’s revenue from the Americas rose
6 percent in the quarter, with Europe, Africa and the Middle
East flat, and Asia up 1 percent.IBM also derives a major portion of its revenue from
government spending and the financial services industry — both
hit hard by widening fiscal deficits and crumbling markets,
respectively.IBM has consistently beaten Wall Street forecasts. In the
second quarter, it trounced expectations with signings of new
business surging 16 percent. At the time, that stellar
performance raised hopes that 2011 would be a good year for
overall tech-spending.On Monday, it raised its full-year diluted earnings
forecast to at least $13.35 per share, from its prior estimate
of at least $13.25. Analysts had expected $13.32, according to
Thomson Reuters I/B/E/S.IBM reported a third-quarter profit, excluding items, of
$3.28 per share, up 15 percent year over year and above
expectations of $3.22.”Whatever IBM could control, they did a great job. But they
are not immune to macro conditions. Financial conditions are
tough,” said Global Equities Research analyst Trip Chowdhry.”People don’t want to cancel projects, but projects are
getting delayed. Sales cycles are getting elongated. New
projects are getting smaller budgets.”Despite uncertainty in the fourth quarter and 2012, some
portfolio managers remained confident in IBM’s ability to
weather a tougher global environment.”IBM’s business has a degree of resiliency to it. The
company has maintenance agreements that generate recurring
revenue, giving us more visibility on future results,” Wirtz
said.
UPDATE 4-IBM’s Q3 disappoints, stock drops
* Stock dips after-hours as economy worries weighBy Noel RandewichSAN FRANCISCO, Oct 17 (Reuters) - IBM’s quarterly results failed to impress investors used to a stellar showing
from Big Blue, adding to concerns about lackluster corporate IT
spending and dragging its stock down more than 3 percent.The company’s earnings beat forecasts and it increased its
2011 earnings-per-share outlook but it faced a high hurdle
after recent strong reports from Oracle and Accenture , and analysts focused on slower expansion in key
regions and businesses.Further stoking worries about IT spending, business
software maker VMware Inc posted quarterly profit above
expectations but warned of uncertainty among some of its
corporate customers in Europe.”We have seen a bit more scrutiny and higher levels of
approval required. Particularly with larger deals where they
would go for CFO and CEO approval, where in the past we may not
have seen those approvals to be necessary,” said VMWare Chief
Financial Officer Mark Peeking.IBM, an information technology hardware bellwether with a
global clientele, said total services signings — an indicator
of future growth — climbed to $12.3 billion in the third
quarter, in line with expectations.”The growth rates IBM experienced in each of the regions —
Americas, Europe and Asia — are all decelerating and the
public sector is exhibiting no growth,” said Shebly Seyrafi, an
analyst at FBN Securities. “I wouldn’t say we’re falling off a
cliff, but there is a slowing in IT spending.”Revenue rose 8 percent to $26.16 billion, marginally softer
than the average forecast of $26.26 billion.Buttressed by recurring revenue that helps keep IBM’s
results steady in strong and weak economies, its shares have
outperformed the market and hit a record high on Friday. They
are up about 28 percent this year versus the Standard & Poor’s
500 index’s 4 percent dip.On Monday, International Business Machines Corp’s stock
fell 3.7 percent to $179.70 in extended trade after closing
down 2.1 percent on the New York Stock Exchange.”The company exceeded published expectations, but the
underlying expectations were even higher,” Annex Research
analyst Bob Djurdjevic said. “Investors who have been very
bullish on IBM are probably taking some profits now.”RISING CLOUDU.S. economic concerns and a worsening European financial
crisis have hurt consumer demand. Companies such as IBM that
sell hardware and software for data centers powering the
Internet have remained resilient.IBM said revenue from cloud computing in the first nine
months of this year was twice as much as in full-year 2010.Adjusted for currency, IBM’s revenue from the Americas rose
6 percent in the quarter, with Europe, Africa and the Middle
East flat, and Asia up 1 percent.IBM also derives a major portion of its revenue from
government spending and the financial services industry — both
hit hard by widening fiscal deficits and crumbling markets,
respectively.IBM has consistently beaten Wall Street forecasts. In the
second quarter, it trounced expectations with signings of new
business surging 16 percent. At the time, that stellar
performance raised hopes that 2011 would be a good year for
overall tech-spending.On Monday, it raised its full-year diluted earnings
forecast to at least $13.35 per share, from its prior estimate
of at least $13.25. Analysts had expected $13.32, according to
Thomson Reuters I/B/E/S.IBM reported a third-quarter profit, excluding items, of
$3.28 per share, up 15 percent year over year and above
expectations of $3.22.”Whatever IBM could control, they did a great job. But they
are not immune to macro conditions. Financial conditions are
tough,” said Global Equities Research analyst Trip Chowdhry.”People don’t want to cancel projects, but projects are
getting delayed. Sales cycles are getting elongated. New
projects are getting smaller budgets.”Despite uncertainty in the fourth quarter and 2012, some
portfolio managers remained confident in IBM’s ability to
weather a tougher global environment.”IBM’s business has a degree of resiliency to it. The
company has maintenance agreements that generate recurring
revenue, giving us more visibility on future results,” Wirtz
said.
FACTBOX-Prison options for Rajaratnam
BERNARD EBBERSThe former WorldCom Inc CEO was convicted in 2005 for
running a $11 billion fraud that led to the bankruptcy of his
company. He is serving a 25-year sentence in the Federal
Correctional Institution in Oakdale, Louisiana. The low
security level facility offers inmates classes in basket
weaving.CONRAD BLACKThe former head of newspaper group Hollinger International
Inc was convicted in July 2007 of defrauding his employer.
After being released from prison last year while his case was
on appeal, Black returned to prison in September to serve the
remaining 13 months of his sentence. Black is an inmate at the
Federal Correctional Institution in Miami. It’s the same
facility where former Panamanian strongman Manuel Noriega was
imprisoned for drug smuggling and money laundering.DENNIS KOZLOWSKIThe former head of Tyco International Ltd was convicted in
2005 of stealing more than $150 million from Tyco and is
serving his 8-1/3 to 25-year prison term at the
medium-security level Mid-Sate Correctional Facility in Marcy,
New York. Fortune magazine reported that Kozlowski sued state
prison officials in May, after his request to participate in a
work-release program was denied. (Rajaratnam, convicted in
federal court, will not be sentenced to the Mid-State facility
since it is a state prison.)BERNARD MADOFFThe financier who orchestrated the largest Ponzi scheme in
U.S. history is serving a 150-year sentence in the Federal
Correctional Institution-Medium in Butner, North Carolina.
Citing people familiar with the matter, The Wall Street Journal
reported last year that Madoff was physically assaulted by
another inmate in December 2009. A prison spokeswoman told the
newspaper that Madoff informed staff that he was not assaulted,
which was consistent with an investigation into the incident.JOSEPH NACCHIO:The former CEO of Qwest Communications, who was convicted
in 2007 of 19 counts of insider trading, was sentenced to six
years in prison, later reduced by two months. He is serving out
his sentence at a prison camp for minimum male offenders in
Lewisburg, Pennsylvania. The facility offers bike riding
(stationary), bocce ball, horseshoes, table top games, pool,
ping-pong and weight lifting.JEFFREY SKILLING:The former Enron executive was convicted in 2006 of charges
stemming from the collapse of the one-time energy giant.
Despite a continuing appeals process, Skilling remains in
prison in the low-security Federal Correctional Institution in
Littleton, Colorado. The facility has a recreation yard,
gymnasium, weight room, hobby shop, music room, and wellness
center.
