IBM posts a near US$5-billion profit

20 Jan 2010

Technology giant IBM has reported Q4 revenues of US$27.2 billion out of which it has achieved profits of US$4.8 billion. The company said it was confident about 2010 and appetite for its Smarter Planet solutions.

For the full year 2009, IBM said revenues totalled US$95.8 billion, a decrease of 8pc, compared with $103.6 billion in 2008. Profits for the year were US$13.4 billion.

“We concluded a strong year with a solid performance in the fourth quarter in which we again delivered growth in margins, profit and earnings,” said Sam Palmisano, IBM chairman, president and chief executive officer.

“IBM continued to benefit from our strategic transformation, offerings that our clients value in this economy, and our commitment to developing countries around the world.

“In 2009, we invested in opportunities such as Smarter Planet solutions, cloud computing and advanced analytics. These new capabilities position IBM to grow as the economy recovers.

“The increased operational leverage we have established by creating a globally integrated enterprise will enable us to drive greater profits as revenue growth returns. We are confident about 2010 and our ability to achieve the high end of our long-term road map,” Palmisano said.

The company said it expects full-year 2010 diluted earnings-per-share expectations of at least US$11.

Total Global Services revenues increased 2pc to US$10.1 billion. Global Business Services segment revenues decreased 3pc to US$4.6 billion.

IBM signed services contracts totalling US$18.8 billion, at actual rates, an increase of 9 percent including 22 contracts greater than US$100 million.

Signings in Consulting and Systems Integration and in Integrated Technology Services were US$7.4 billion, revenues from the Software segment were US$6.6 billion and revenues from the Systems and Technology segment totalled US$5.2 billion for the quarter.

By John Kennedy

John Kennedy is a journalist who served as editor of Silicon Republic for 17 years