IBM US Federal| Company Web site
International Business Machines Corp. (IBM), headquartered in Armonk, New York, has been known through most of its recent history as the world's largest computer company with almost 400,000 employees worldwide. IBM US Federal is the predominant Top Secret contractor with the U.S. government.
The majority of the company's enterprise business, which excludes the company's original equipment manufacturer (OEM) technology business, occurs in industries that are broadly grouped into six sectors:
* Financial Services: Banking, Financial Markets, Insurance
* Public: Education, Government, Health care, Life Sciences
* Industrial: Aerospace, Automotive, Defense, Chemical and Petroleum, Electronics
* Distribution: Consumer Products, Retail, Travel, Transportation
* Communications: Telecommunications, Media and Entertainment, Energy and Utilities
* Small and Medium Business: Mainly companies with less than 1,000 employees
* Revenue for 2008 was a record $103.6 billion, up 5 percent. In 2008 pre-tax income from continuing operations rose 15 percent, to $16.7 billion, the highest ever.
* In 2008 free cash flow, excluding the year-to-year change in Global Financing receivables, was $14.3 billion, an increase of $1.9 billion from 2007. IBM ended 2008 with $12.9 billion of cash and marketable securities.
* In 2008 IBM's gross profit margin rose for the fifth consecutive year -- to 44.1 percent, up 7.6 points since 2003. Our pre-tax income margin rose to 16.1 percent. Both margins are at their highest in more than a decade. Diluted earnings per share from continuing operations in 2008 were $8.93, up 24 percent. This marked six straight years of double-digit EPS growth.
* IBM's 2008 cash investment was $6.3 billion for 15 acquisitions -- 10 of them in key areas of software. And after investing $6.3 billion in R&D and $4.5 billion in net capital expenditures, we were able to return more than $13 billion to shareholders -- $10.6 billion through share repurchase and $2.6 billion through dividends.
* Of the more than 4,000 U.S. patents IBM received in 2008 (our 16th straight year of patent leadership), more than 70 percent were for software and services.
* IBM has divested commoditizing business like personal computers and hard disk drives, and strengthened its position through strategic investment and acquisitions in higher-value segments like business intelligence and analytics, virtualization and green solutions.
* At the end of 2008 IBM had 398,455 employees worldwide, an increase of almost 12,000 from 2007.
* IBM operates in more than 170 countries and enjoys an increasing broad-based geographic reach. Our non-U.S. operations generated approximately 65 percent of IBM's revenue in 2008. IBM's Growth Markets unit, which was established in 2008, grew 10 percent and made up 18 percent of our revenue.
* All around the world, businesses, governments and institutions are investing to reduce costs, drive innovation and transform their infrastructure. The economic downturn has intensified this trend, as leaders seek not simply to repair what is broken, but to prepare for a 21st Century economy. Many of their key priorities are in areas where IBM has leading solutions -- such as smarter utility grids, traffic, health care, financial systems, telecommunications and cities. We are aggressively pursuing this transformational, global opportunity.
As a result of the IBM April 2008 acquisition of Telelogic (formerly Popkin software), all Telelogic products and services are now part of the IBM(TM) Rational software portfolio.
IBM also acquired Cognos Incorporated in January 2008. Cognos was a leading provider of performance management solutions for federal agencies worldwide. Cognos is the world leader in business intelligence and performance management solutions, provides world-class enterprise planning and BI software and services to help companies plan, understand and manage financial and operational performance. The Cognos performance system is an open and adaptive solution that leverages an organization's ERP, packaged applications, and database investments. It gives customers the ability to answer the questions -- How are we doing? Why are we on or off track? What should we do about it? -- And enables them to understand and monitor current performance while planning future business strategies. Cognos serves more than 23,000 customers in more than 135 countries, and its top 100 enterprise customers consistently outperform market indexes. Cognos performance management solutions and services are also available from more than 3,000 worldwide partners and resellers.
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Above $50 billion
Top Secret Work
Number of Locations
Number of Government Clients
- Management consulting and administration
- Border control
- Weapons technology
- Information technology
- Intelligence analysis
- Law enforcement
- Technical intelligence
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