IBM 2005 Annual Report Download - page 4
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integration and innovation, and underpinned by a
strong financial footing, is unique
—
and why we are
strongly positioned to capture the most attractive
growth and profit opportunities in the years ahead.
Leadership Businesses and Leadership Results
Our results in 2005 were achieved through the
marketplace performance of our major businesses
—
Systems and Technology, Software, and Services.
Let me describe that performance briefly for each.
SYSTEMS AND TECHNOLOGY: Our company’s
technology strength is the result of long-term
investments we’ve made over many years, invest-
ments that are now bearing fruit. Last year, IBM’s
Systems and Technology business extended its indus-
try leadership, enhancing its competitive standing
and staking out advantageous positions in growth
markets of the future. Since 2000, IBM’s total
share of the server market has grown 9.5points in
annual revenue, according to industry analyst IDC.
Our Systems and Technology revenues in 2005
were up 5percent. In the fourth quarter, shipments
of MIPS (millions of instructions per second)
for our zSeries mainframes grew 28 percent year-
to-year
—
our largest quarter of MIPS shipments on
record, leading to our highest mainframe revenue
since the fourth quarter of 1998. pSeries UNIX
servers had a strong year, growing 15 percent, with
double-digit growth in all geographies. We believe
this was the fourth straight year of improvement in
pSeries’ market position. We expect to maintain
our leadership in the fast-growing Blade server
business, with a 2005 growth rate of 65 percent. In
addition, our system storage business was up 15 per-
cent for the year, driven by our mainstay disk
and tape products. And our emerging technologies
also gained momentum, such as storage virtualiza-
tion, which added 1,700 clients.
Led by our sweep of the three major gaming
platforms, IBM’s microelectronics business achieved
16 percent growth. Revenue from our 300-millimeter
wafer products grew strongly in 2005
—
including
more than 250 percent growth in the fourth quarter.
Engineering & Technology Services grew 39 percent
for the year. The Cell Broadband Engine, our
revolutionary microprocessor developed through
a unique technology collaboration with Sony and
Toshiba, is bringing the capabilities of supercomputer-
level simulation to multiple arenas, including con-
sumer electronics, healthcare and defense. Recently
we combined a number of these engineering and
technology operations into a new unit, Technology
Collaboration Solutions, to bring greater focus and
Revenue
(Dollars in billions)
Income
(Dollars in billions)
Earnings per share —
assuming dilution
(In dollars)
Net cash from operating
activities, excluding Global
Financing receivables
(Dollars in billions)
_3
2005 performance includes results from four months of the IBM PC business, which was divested on April 30, 2005.
3_
0_
6_
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12_
$15_
0504030201
11. 7
10.5
12.6 12.9 13.1
Results from continuing operations
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$5_
0504030201
3.94
2.43
3.76
4.39
4.91
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4_
6_
$8_
0_
0504030201
6.9
4.2
6.6
7. 5 8.0
0_
0504030201
83.1 81.2
89.1
96.3 91.1
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60_
80_
$100_