IBM reports $534m loss

IBM reported a third-quarter loss of $543m (pounds 362m), including a charge of $1.8bn related to its acquisition of Lotus Development. Excluding the Lotus purchase, IBM said its profits rose to $1.3bn, or $2.30 a share, compared with earnings of $689m, or $1.18 a share, in the same period of 1994. Including the Lotus purchase, IBM lost 96 cents a share for the quarter.

The world's largest computer company said it planned to take an additional charge of $800m in the fourth quarter to pay for reorganisation, including limited staff cuts this year.