IBM Q3 net income rises 12 percent

Strong results in emerging markets fueled the performance

IBM said Monday that third-quarter net income rose 12 percent to US$3.6 billion, buoyed by strong performance in Brazil, Russia, India and China as well as solid sales of analytics software and services.

Revenue in those four countries jumped 29 percent year-over-year, IBM said. In contrast, the Americas saw a 3 percent increase in revenue to $10.2 billion, while Europe, the Middle East and Africa (EMEA) dropped 6 percent to $7.4 billion

Those figures suggest that emerging markets are "out of the blocks" and rebounding faster from the global recession that developed economies, CFO Mark Loughridge said during a conference call.

Total revenue was $24.3 billion, a jump of 3 percent.

Software revenue was up 1 percent to $5.2 billion. Within that group, revenue from IBM's WebSphere middleware increased 14 percent. Tivoli software sales grew 9 percent, while Lotus and Rational software sales were flat. Business analytics revenue across software and services rose by 14 percent.

Systems and Technology revenue was up 10 percent to $4.3 billion, with System x server sales jumping 30 percent and System z mainframe revenue up 15 percent. Power Systems sales fell 13 percent, however, while storage revenue grew 7 percent.

Global Technology Services revenue ticked up 1 percent to $9.5 billion, while Global Business Services segment revenues rose 5 percent to $4.6 billion.

The company signed $11 billion in service contracts in the quarter, a drop of 7 percent.

Outsourcing contract signings fell 15 percent to $5.7 billion, but would have climbed 14 percent if an agreement signed Oct. 8 had made it into the quarter, IBM said. "We're talking about eight days," Loughridge said. The contract signing drifted past the end of the quarter because its scope was expanded, he said.

IBM expects a strong fourth quarter for System z sales, thanks partly to a major new "system of systems" product release, he said.

Services and hardware sales will likely remain level next quarter, but software growth should accelerate, he added.

Join the PC World newsletter!

Error: Please check your email address.

Tags business issuesservicesIBMhardware systemssoftwarefinancial results

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Chris Kanaracus

IDG News Service
Show Comments

Cool Tech

D-Link PowerLine AV2 2000 Gigabit Network Kit

Learn more >

ASUS ROG Swift PG279Q – Reign beyond virtual world

Learn more >

Lexar® Professional 1000x microSDHC™/microSDXC™ UHS-II cards

Learn more >

Crucial® BX200 SATA 2.5” 7mm (with 9.5mm adapter) Internal Solid State Drive

Learn more >

D-Link TAIPAN AC3200 Ultra Wi-Fi Modem Router (DSL-4320L)

Learn more >

Gadgets & Things

Lexar® Professional 1000x microSDHC™/microSDXC™ UHS-II cards

Learn more >


Learn more >

Lexar Professional 2000x SDHC™/SDXC™ UHS-II cards

Learn more >

Family Friendly

Lexar Professional 2000x SDHC™/SDXC™ UHS-II cards

Learn more >

ASUS VivoPC VM62 - Incredibly Powerful, Unbelievably Small

Learn more >

Lexar® Professional 1000x microSDHC™/microSDXC™ UHS-II cards

Learn more >

Stocking Stuffer

Lexar® Professional 1000x microSDHC™/microSDXC™ UHS-II cards

Learn more >

Lexar Professional 2000x SDHC™/SDXC™ UHS-II cards

Learn more >

Christmas Gift Guide

Click for more ›

Most Popular Reviews

Best Deals on PC World

Latest News Articles


GGG Evaluation Team

Kathy Cassidy


First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni


For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Steph Mundell


The Fujitsu LifeBook UH574 allowed for great mobility without being obnoxiously heavy or clunky. Its twelve hours of battery life did not disappoint.

Andrew Mitsi


The screen was particularly good. It is bright and visible from most angles, however heat is an issue, particularly around the Windows button on the front, and on the back where the battery housing is located.

Simon Harriott


My first impression after unboxing the Q702 is that it is a nice looking unit. Styling is somewhat minimalist but very effective. The tablet part, once detached, has a nice weight, and no buttons or switches are located in awkward or intrusive positions.


Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?