Thursday January 18, 2018

In Brief: IBM finds improper hardware sales in Japan unit
  Posted by: Infoworld on Feb 25th, 2005 5:20 AM
News from Infoworld
IBM reduced its full year revenue figure for its Global Services unit by $260 million after discovering improper sales of third-party hardware at its Japan unit, the company said in a filing with the SEC on Thursday. The company said a review of agreements for sales of third-party hardware in Japan that was conducted after it announced full-year earnings on Jan. 18 discovered "certain IBM Japan employees acted improperly and inconsistently with IBM’s policies and practices." A spokeswoman for IBM Asia-Pacific declined to provide additional information when contacted. Fourth quarter results already reflected a $50 million adjustment, so full-year figures have been adjusted down by a further $210 million, the SEC filing said. IBM's global services division is the largest of its businesses and contributed $46.4 billion, or about 48 percent, of IBM's total 2004 revenue of $96.5 billion. The $260 million reduction represents 0.2 percent of this total revenue.

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