IBM wins $1.3 b. services contract

NEW YORK: International Business Machines Corp., the No. 1 computer maker and

computer-services company in the world, said on Friday it won a $1.3 billion

contract over 15 years to modernize the US Customs Service's technology.

Under the agreement, IBM said its Global services unit will, in addition to

modernizing the department's technology, help it develop and put in place a new

system for processing imports. The effort aims to boost the efficiency of

processing imported goods and boost its ability to detect and curtail

international crime.

Armonk, New York-based IBM's Global Services business had the largest-ever

signings of deals in its first quarter, including eight over $100 million and

one over $1 billion. Its backlog is now $87 billion.

On April 18, IBM reported a 15 per cent increase in first-quarter net income,

to $1.75 billion, or 98 cents a share, up from $1.52 billion, or 83 cents, a

year ago. Sales rose 9 per cent to $21 billion.

(C) Reuters Limited 2001.