Actions to improve the competitiveness of this unit are continuing on an aggressive schedule. These actions include the consolidation of development activities and simplification of our PC product line. On a full-year basis, IBM made real progress in 1994. Total revenue increased 6 percent, the first time annual revenue has grown since 1990. We enter 1995 with the bulk of our right-sizing behind us.
Efforts are well under way worldwide to re-engineer virtually every part of the company.
These actions will result in additional reductions in our cost and expense structure this year and in the future. I am proud of what our employees have accomplished and by their determination to move forward on these difficult tasks. The pace of change at IBM must continue as we increasingly focus on growth and on the implementation of our long-term strategies. Revenue gains resulting from currency were largely offset by increases in costs and expenses due to currency. Revenue on a constant currency basis grew approximately 3 percent in the quarter.