IBM Puts Quarterly Loss at $48 Million

In a report that perhaps marks the end of a string of deficits, International Business Machines Corp. on Tuesday said it lost $48 million in the third quarter and saw a modest increase in revenues. The loss was smaller than had been expected.

A big jump in personal computer sales offset weakness in other parts of the company. Analysts said that if revenues hold steady, IBM could show a profit in the fourth quarter as the cost-saving effects of broad job cuts are felt more strongly.

The world’s biggest computer company said the cuts helped its results in the third quarter, although IBM still lost slightly more than the $40 million it did in the second quarter, before special charges for that quarter are figured in.

IBM’s third-quarter loss amounted to 12 cents a share. A year ago, IBM showed a loss of $2.8 billion, or $4.87 a share, after taking a special charge for reducing its work force and closing some facilities. Without that charge, the company would have earned $86 million.

Revenue was $14.74 billion, compared to $14.70 billion a year ago. This was a reversal of the declines IBM has had in most quarters since 1990.

Most Wall Street analysts had expected a loss of between $150 million and $200 million. The company’s results prompted investors to pick up IBM stock, which closed $1.37 higher Tuesday, at $46.25, on the New York Stock Exchange.