Bob Djurdjevic Quotes (10 Quotes)

Overall, IBM hit the first quarter on the button. The company is on the slow track to improvement.

They got rid of a dud so that the profitability of the rest of IBM hardware can now shine. Hardware revenues without the PC business increased 6 or 9 in constant dollars.

That's been the sales pitch I've been hearing from all these companies.

Global Services results are disappointing, especially a 2 billion drop in its backlog in the fourth quarter. And a 9 decline in new contract signings That means that the biggest IBM unit is losing more business from its backlog than it is signing.

The way I would characterize what I saw today is, they're on a slow path of improvement. It's not a sprint.

You put it all together and what it tells me is they're losing more business than they're selling. And that's a worrisome sign.

Only the degree of severity of the decline will vary from one company to the next.

These companies, in their own way, all are in trouble and cutting back their capital spending and budgets, and that's why the IT services vendors are feeling the pinch as well, ... That cannot be said of the small and medium-sized enterprises, which is typically Sun's bread-and-butter marketplace.

This is exactly what IBM went through during that time frame.

If anyone wants to look at the quantum leap at IBM, they should look at profit margins. Investors have to be savvy enough to accept the fact that sometimes smaller is better, but that's not the mentality on Wall Street. That may be why IBM is not getting the credit they deserve.