A recent filing with the US Securities and Exchange Commission (SEC) has revealed IBM's PC business lost about 1 billion dollars in the past 3 years. The PC unit lost $397m in 2001, $171m in 2002, $258m in 2003 and $139m through the first six months of this year. Even after outsourcing most of their PC business, the division continued to lose money. IBM's PC business was recently purchased by China's largest PC maker Lenovo for $1.25bn and the assumption of debt. The new firm will be headquartered in Armonk, New York where former IBM executives will run the ship. The merger of IBM's PC business into Lenovo will create the world's third-largest personal computer maker. Through the first six months of this year, IBM's computer division pulled in $5.2bn in revenue. This compares with $4.3bn in revenue posted during the same period last year. "The Business has a history of recurring losses, negative working capital and an accumulated deficit," IBM said in the filing. "The ability to settle obligations as they come due is dependent on IBM funding the operations on an ongoing basis."

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