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Katz runs the company with 22 paid employees and 300 volunteers who give technical support to new users and are compensated with free memberships (remember those days at AOL ). He rents space in two AT&T data centers, one in Manhattan, another inSecaucus, N.J., with $700, 000 worth of computer equipment, end servers from Dell Computer and five IBM Unix servers. The $2 million annual payroll is his biggest expense.
Thinkpad (AXcess News) Houston, TX - International Business Machines Corp. (NYSE: IBM) beat analysts estimates in first-quarter profits, reporting a 22 percent increase for the period.
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Microsoft Analysts estimated that IBM would earn $1.05 per share, but the computer-maker surprised Wall Street, reporting $1.08 per share Tuesday, an increase of 27 percent for the first-quarter over the same period last year. IBM's net income was $1.7 billion a 22 percent increase for the quarter.
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Laptop Computers Shares of IBM closed up $1.67, or 2.05 percent, at $83.32, while in after-market trading, "big blue's" stock continued climbing another 95 cents, or 1.14 percent, to $84.26, to chalk up a total gain for the day of over 3.8 percent.
"Computer industry analysts estimate that some 60 percent of all corporate data exists only on desktop and laptop computers, " said Walter Scott, CEO of Acronis. "Incorporating Acronis True Image with New Mexico Software backup server is the ideal solution to capture that corporate data and ensure that it is not lost. While traditional server backups are effective for protecting server data, every company should have a combination of server and workstation backup plans."
Laptop Computer While revenue was down 10 percent over last year, IBM reported $20.7 billion in revenue, which was in line with analysts expectations. While revenue was down, it also no longer included revenue from its computer business IBM sold to China's Lenovo.
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Desktop Computer Revenue for IBM's high-margin consulting business, increased 24 percent year over year.
Notebooks Its Global Services division accounted for 52 percent of its revenue, or $11.6 billion, which was down 1 percent over last year.
Lenovo Mark Loughridge, senior vice president and chief financial officer for IBM, said in a conference call, "We have done a lot to reposition our business model on higher valuation solutions."
Hard Drive IBM has spent several years shedding its hardware business, selling off its computer manufacturing, disk drives and monitors businesses, which has been paying off, though its stock has not reflected those improvements.
Travelstar Last year, IBM reorganized its service division, cutting some 13,000 jobs in the process.
Now, analysts look to IBM to grow at an annual rate of 4 percent, which is a tough number to reach in consideration of competition from Hewlett-Packard (NYSE: HPQ), Microsoft Corp. (Nasdaq: MSFT) and Sun Microsystems (Nasdaq: SUNW).
