Anyone know what percentage of revenue is derived from Europe?
There has been lots of commentary about the strength of US dollar vs. Euro and how it will negatively impact many multi-national companies especially the ones that derive/rely on Europe for big chunk of sales.
--------------------- International Business Machines EPS (FY Dec) 2005E $4.90, 2006E $5.50 Outperform/Neutral (IBM) $74.89 Although IBM, along with all other US-based multinational companies, will experience a revenue reduction as a result of the strengthening dollar, our analysis suggests that at least one important fundamental area - namely, services bookings - should be solidly up both y/y and q/q. We believe that this runs counter to most thinking we have heard, which has typically extended IBMs dismal March quarter services bookings performance into the current quarter. If we are right, IBM should be on solid footing to grow bookings in 2005 enough to enable 6-7% type services revenue growth in 2006. While only a portion of the total picture, services bookings are crucial if IBM is going to show revenue growth anywhere near its target of mid to high single digits.