IBM increases revenues in Q4 2006

21 Jan 2008

IBM reported a triumphant fourth quarter of 2007, increasing total revenues by 10pc.

Big Blue recorded Q4 2007 diluted earnings of US$2.80 per share, up from US$2.26 over Q4 2006, a jump of 24pc.

Total revenue for Q4 2007 was US$28.9bn, an increase of 10pc (4pc adjusted for currency) from the fourth quarter of 2006.

Revenues from the EMEA market were US$10.8bn, up 16pc (6pc adjusting for currency). Fourth-quarter revenues for the US were US$11.7bn, an increase of 5pc (2pc adjusting for currency) from the 2006 period. Asia-Pacific revenues increased 15pc (9pc adjusting for currency) to US$5.5bn.

In total, 65pc of overall revenues came from outside the US.

Total Global Services revenues grew 17pc (10pc adjusting for currency) and pre-tax income increased by 19pc, IBM said.

OEM (original equipment manufacturer) revenues were US$894m, down 13pc on Q4 2006.

“IBM had a terrific fourth quarter and full year with record revenue, profit and cash,” said Samuel J Palmisano, IBM chairman, president and CEO. “The broad scope of our global business, led by strong operational performance in Asia, Europe and emerging countries, as well as continued growth in services and software drove these outstanding results.

“As we begin 2008, IBM is well-positioned as a result of our global business reach, solid recurring revenue and profit streams and strong financial position. We are on track to achieve our long-term earnings-per-share roadmap objective in 2010.”

For the full year, IBM reported diluted earnings of US$7.18 per share, up 18pc. Total revenues were up 8pc at US$98.8bn.

Global Technology Services revenues grew by 12pc in 2007, while pre-tax income in this segment was up 8pc.

Global Business Services revenues were up 13pc for the full year, while pre-tax income for this segment rose 21pc. Software revenues were up 10pc, realising a pre-tax income growth of 9pc.

By Niall Byrne