The robust hopes for capital spending aren't yet realized, but there's clearly an improvement. IBM's business is sound. They're focusing on profitability.

On the whole it is a plus for Coca-Cola. Their board is stale.

Things are very profitable at IBM. There aren't too many companies of that size that are earning over 7 percent return on their assets.

We made great choices offensively and hit open shots. Tonight was a huge improvement.

Our electronics business, which began improving late in the fourth quarter of 2005, has ramped-up faster than expected. Improvement in telecom has been the most significant contributor, but all major end markets are showing positive trends, with particular strength in North American distribution. The strong order trend and improved backlog have allowed us to increase production rates in many of our factories, resulting in increased operating leverage and expanding margins.

The number one business priority this year, as in 2006, is business-process improvement.