In each instance, Sam has done far more than manage operations effectively, ... He has made it both his personal mission and that of IBM to become the number one competitor in each of these markets. Sam's unique mix of strategic vision, passion and discipline, combined with his intimate understanding of IBM, make him the right person to become IBM's next CEO.
As we enter the next phase of IBM's transformation, we need a new organizational approach that will strengthen our focus on both day-to-day marketplace results and future growth opportunities, ... I believe this new structure is the best way to accomplish these goals, under the leadership of two of IBM's most experienced and capable executives.
Our second-quarter results are right in line with our expectations and with the view we've been expressing since last October, ... Essentially, we've had three quarters of slow revenue growth, driven by a combination of the Y2K slowdown and a series of actions we've taken to improve our business portfolio. During that time, however, we have been able to produce satisfactory earnings growth.
We would like to have seen more revenue in the quarter, but we were held back by three items, ... First, demand for our microelectronics products -- from both outside customers and internal IBM customers -- far outstripped our ability to supply components. Second, the upcoming release of our new high-end server slowed demand for the System390 family of servers. Finally, parts of our software business slowed unexpectedly in September.