IBM reports 10 percent jump in profit for Q4

The company reported its first revenue increase since the third quarter of 2008

IBM on Tuesday reported a 10 percent jump in profit for the fourth quarter as revenue increased at the company for the first time in more than a year.

IBM reported a profit of $US3.59 per share, up from $US3.27 in the same quarter last year and ahead of the $US3.47 that financial analysts had been expecting, according to Thomson Reuters.

Revenue for the quarter was $US27.2 billion, up 1 percent from the same period last year. Analysts had been expecting revenue to be essentially flat with the year earlier. It was the first year-over-year revenue growth IBM has reported since the third quarter of 2008. Quarterly net income was $US4.8 billion, up 9 percent from the same quarter last year.

"We are confident about 2010 and our ability to achieve the high end of our long-term roadmap," Chairman and CEO Sam Palmisano said in a statement.

A 3 percent drop in sales from the Americas was offset by a 2 percent increase in Europe, the Middle East and Africa, and a 6 percent increase in Asia. IBM's results benefitted from currency fluctuations. At constant currency, IBM's overall revenue would have declined 5 percent, the company said.

Revenue from IBM Global Services was up 2 percent, and software revenue increased by the same amount. WebSphere sales were up 13 percent year over year, IBM said.

Sales from its Systems and Technology segment, which includes IBM's servers, continued to decline, but by less than in recent quarters. Overall revenue for the segment was down 4 percent to $US5.2 billion. System p and System z products saw revenue decline by 14 percent and 27 percent, respectively, while sales of System x servers increased 37 percent, IBM said.

The results are the latest sign that IT spending is gradually recovering. Last week Intel reported a fourth-quarter profit of $US2.28 billion, or $US0.40, an improvement from a year earlier despite including a $US1.25 billion legal settlement with Advanced Micro Devices. Intel's revenue was up 28 percent, though largely on consumer sales.

Also last week Forrester Research said the U.S. IT market will grow by 6.6 percent this year and declared the tech downturn of 2008 and 2009 to be "unofficially over." As evidence it cited a 4 percent increase in fourth-quarter revenue reported by Oracle, and the "cautious optimism" for 2010 expressed by Accenture.

Join the PC World newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags IBMrevenuefinancial resultsprofit

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

James Niccolai

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Matthew Stivala

HP OfficeJet 250 Mobile Printer

The HP OfficeJet 250 Mobile Printer is a great device that fits perfectly into my fast paced and mobile lifestyle. My first impression of the printer itself was how incredibly compact and sleek the device was.

Armand Abogado

HP OfficeJet 250 Mobile Printer

Wireless printing from my iPhone was also a handy feature, the whole experience was quick and seamless with no setup requirements - accessed through the default iOS printing menu options.

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?