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IBM CFO Speaks on Company's First-Quarter Earnings

IBM CFO Speaks on Company's First-Quarter Earnings

IBM Corp. reported first-quarter earnings that beat what many analysts had forecast, with higher revenue attributed to its growing software and services divisions. However, the company reported less revenue from hardware sales, which was expected, and also showed lower overall revenue than Wall Street predicted, The Associated Press reports.

IBM CFO Mark Loughridge recently spoke to analysts on topics such as the company's European business and public sector demand. When asked about the company's expectations for Europe, Loughridge pointed out that the region cannot be broken down so simply.

"Europe [is] not just a homogenous breakdown of countries. In the U.K., we had 10 percent growth.... That's 10 percent on two years of real performance out of the U.K. business, and I think they've done a great job," he said. "[In] Spain, we had growth for the sixth consecutive quarter. In Germany, we had growth for the second consecutive quarter."

According to InformationWeek, IBM's sales grew less than 1 percent compared to the previous quarter, suggesting the company may be experiencing pressure to cut costs to meet ambitious earnings targets in a climate where IT spending has dropped.