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THE world economy might be faced with uncertainty, but that isn’t getting in the way of IBM returning a 26 per cent jump in earnings to US$2.3 billion (A$2.45 billion) for the first quarter of 2008.
Total revenues for the climber 11 per cent to US$24 billion compared to the year ago quarter.
Services is where Big Blue appears to have made the most solid gains, with its Global Technology Services unit revenues up 17 per cent – and pre-tax profit up 45 per cent – and Global Business Services up 17 per cent.
The company said 65 per cent of revenues is generated outside of the US, and the Asia Pacific continues to be an outstanding market – with revenue up 14 per cent, compared to six per cent for the US market.
Analysts applauded the result, and said the companies strength in international markets continued to allow it to perform well despite challenges in the domestic US.
“These results reinforce our confidence in IBM's ability to perform well in a dynamic global economy,” IBM chairman and chief executive Sam Palmisano said.
“IBM is a different company today, with a number of unique advantages: our global reach and scale, our strength in profitable growth segments, strong recurring revenue and profit streams, products and services that create real value for clients, and the discipline and financial strength and flexibility that enables us to adjust our business model as conditions require,” Mr Palmisano said.
“We feel good about the rest of the year.”
The IBM Software division continues to perform well, with revenues up 14 per cent to US$4.8 billion, compared with the first quarter of 2007. Revenues from middleware products, which primarily include WebSphere, Information Management, Tivoli, Lotus and Rational products, were US$3.8 billion, up 16 per cent versus the first quarter of 2007. |
