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IBM's PC Division: No Profit in Over 3 Years | |
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| Time: 11:56 EST/16:56 GMT | News Source: WinInformant | Posted By: Chris Hedlund | ||
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In a regulatory filing with the US Security and Exchange Commission, International Business Machines (IBM) revealed that its PC business, which was recently sold to Chinese computer giant Lenovo for $1.25 billion, hasn't been profitable for at least three and a half years. The revelation, which IBM would not have made were it not legally required for the sale to complete, was unusually blunt in its discussions about the economics of the PC business. "The [PC] business has a history of recurring loses, negative working capital, and an accumulated deficit," IBM wrote in the filing. "The ability to settle obligations as they come due is dependent on IBM funding the operations on an ongoing basis." The business lost $258 million in 2003, $171 million in 2002, and $397 million in 2001. In the first half of 2004, IBM's PC business lost $139 million on sales of $5.2 billion. | ||
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