IBM signed ser ices contracts totaling 17

Global Technology Ser ices segment re enues decreased 4 percent (up 3percent, adjusting or currency) to $9.6 billion. Global Business Ser icessegment re enues decreased 5 percent ( lat, adjusting or currency) to $4.7billion. IBM signed ser ices contracts totaling $17.2 billion, at actual rates,a decrease o 5 percent ($15.6 billion, adjusting or currency, up 2 percent),including 24 contracts greater than $100 million. Short-term signings were $7.3billion, a decrease o 7 percent at actual rates (1 percent to $6.6 billion,adjusting or currency). Re enues rom the So tware segment were $6.4 billion, an increase o 3 percent(9 percent, adjusting or currency) compared with the ourth quarter o 2007;pre-tax income increased 15 percent. Operating systems re enues o $622 million decreased 6 percent comparedwith the prior-year quarter. or the WebSphere amily o so tware products, which acilitate customers'ability to manage a wide ariety o business processes using open standards tointerconnect applications, data and operating systems, re enues decreased 1percent.

Re enues rom In ormation Management so tware, which enables clients tole erage in ormation on demand, increased 18 percent. Re enues rom Rational so tware, integrated tools to impro e the processeso so tware de elopment, decreased 1 percent compared with the year-ago quarter.Re enues rom the Systems and Technology segment totaled $5.4 billion or thequarter, down 20 percent (16 percent, adjusting or currency). Systems re enuesdecreased 18 percent (14 percent, adjusting or currency). Re enues rom System z main rame ser er products decreased 6 percentcompared with the year- ago period. Total deli ery o System z computing power,which is measured in MIPS (millions o instructions per second), increased 12percent. Re enues rom the System x ser ers decreased 32 percent, and re enues rom the legacy System i ser ers decreased 92 percent. Re enues rom SystemStorage decreased 20 percent, and re enues rom Retail Store Solutions decreased28 percent Re enues rom Microelectronics OEM decreased 34 percent.

Global inancing segment re enues decreased 1 percent (up 5 percent, adjusting or currency) in the ourth quarter to $660 million. The company's total gross pro it margin was 47.9 percent in the 2008 ourthquarter compared with 44.9 percent in the 2007 period, led by strong per ormancein both ser ices segments. Total expense and other income decreased 5 percent to $7.1 billion compared withthe prior-year period. Adjusting or currency and estimated acquisitionsimpacts, total expense and other income decreased 2 percent year o er year SG&Aexpense decreased 3 percent to $5.8 billion.

RD&E expense o $1.5 billiondecreased 4 percent compared with the year-ago period. Intellectual property andcustom de elopment income increased to $328 million compared with $236 million ayear ago. Other (income) and expense was income o $97 million, down $1 million rom a year ago. IBM's tax rate in the ourth-quarter 2008 was 23.8 percent compared with 28.0percent in the ourth quarter o 2007, a decline o 4.2 points due primarily tothe utilization o tax credits, including the retroacti e bene it o therecently-enacted U.S research tax credit.