Wall Street Beat: Mixed tech earnings earn tepid reaction

20.04.2012

"And so if you think about the Windows revenue growth being really on the high end of our estimated PC shipment range, it's really a function of: one, business PC is really doing well relative to consumers. And again, that's consistent with the theme we've seen on businesses investing in their technology," Klein said.

Profit dipped year-on-year to $5.11 billion from $5.23 billion, but mainly as a result of a tax break the company took last year, without which net earnings would have increased this year. Revenue increased 6 percent to US$17.41 billion in the quarter.

Strong enterprise sales did not appear to help other vendors in the stock market, however.

For example EMC, considered a strong indicator for enterprise tech sales because of its strength in industrial-grade storage, Thursday reported its ninth consecutive quarter of . Sales for the quarter jumped 11 percent to $5.1 billion, while net income rose a healthy 23 percent to $587 million.

Meanwhile IBM, a major bellwether for corporate IT sales due to its broad product portfolio in hardware, software and services and global reach, that quarterly revenue stayed flat year over year at $24.7 billion, but that net income rose 7 percent to $3.1 billion. Software was key to the quarter as middleware sales were particularly strong, rising 7 percent year over year to $3.5 billion. Hardware, however, did not do as well as sales for the Systems and Technology division declined 7 percent to $3.7 billion.