Bulkeley As Slowdown Drags on

Bulkeley As Slowdown Drags on - Bulkeley, As Slowdown Drags...

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Bulkeley, As Slowdown Drags on, WSJ, July 2009. http://online.wsj.com/article/SB124891414229992099.html “As Slowdown Drags On, IBM Looks to Governments for New Growth.” By WILLIAM M. BULKELEY Samuel Palmisano has been busy. The previously low-profile chief executive of International Business Machines Corp. has crisscrossed the globe in recent months, talking to government leaders about promoting the use of technology to improve everything from roads and water systems to the environment and health care. Government spending on such programs can stimulate economic development, argues Mr. Palmisano. And it has another benefit: boosting IBM's bottom line. No longer a slow-footed behemoth, IBM is proving nimble at finding new opportunities far afield of corporate computer centers. On Tuesday it expanded its portfolio by agreeing to pay $1.2 billion to buy SPSS Inc., whose data-mining software, among other things, is used by Atlanta police to predict which parolee is likely to become violent. In its latest quarter, IBM's profit rose 12% to $3.1 billion, even as revenue fell. Public-sector business has been IBM's strongest this year, rising 7% to $4 billion in the second quarter, adjusted for currency changes. The results sparked a rally in IBM's shares, whose 40% gain for 2009 has far outpaced broad stock indexes. With a stock market value of $155 billion, IBM has climbed to sixth among all U.S. companies-up from 19th in 2007. Most of IBM's big high-tech rivals have suffered during the recession and many are wrestling with problems. Microsoft Corp., which reported its first full-year sales decline, Wednesday reached an alliance with
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This note was uploaded on 04/23/2010 for the course FINA 8645 taught by Professor Smith during the Spring '10 term at Rensselaer Polytechnic Institute.

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Bulkeley As Slowdown Drags on - Bulkeley, As Slowdown Drags...

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