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Tuesday, July 11, 2006

Computer Business IBM Feels Service Lull

According to Wall Street experts, computer business and technology provider IBM might be going through a service lull soon. Expert analyst Benjamin Reitzes, with a rating of “neutral” on the stock cut his forecasts by $2 - $3 billion when he announced a revised estimate of $10 billion from $12 - $13 billion.

He credits recent checks along with highly secretive deals with leading to lower projections for IBM. Reitzes also stated that earnings would be $1.29 per share instead of $1.30 per share and that perhaps server sales would be negatively affected by the computer business’ change in product designs and re-envisioning of its offerings.

Software sales seem to be stable for IBM, but high-end server sales have been, for the time being, majorly affected by changes in product lines. Reitzes expects that many of these lagging figures will change by the end of the year and in the long term.

Added By: Computer Consulting Kit