IBM posts US$2.3bn profit for Q108

17 Apr 2008

IBM has recorded first-quarter income of US$2.3bn, up 26pc from the US$1.8bn recorded for the period a year ago.

Total revenues for the quarter were US$24.5bn, up 11pc year-over-year.

IBM announced Q108 diluted earnings of US$1.65 per share from continuing operations, compared with diluted earnings of US$1.21 per share in the first quarter of 2007, an increase of 36pc.

“IBM had a very good quarter and a good start to 2008. These results re-inforce our confidence in IBM’s ability to perform well in a dynamic global economy,” said Samuel J Palmisano, IBM chairman, president and chief executive officer.

“Our performance is a tribute to the way we have repositioned our company over the past several years, as well as the hard work of IBMers across the globe.

“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.”

In conclusion, Palmisano declared: “We feel good about the rest of the year.”

Revenues from EMEA were US$8.8bn, up 16pc (4pc, adjusting for currency) year-over-year. The Americas’ first-quarter revenues were US$9.9bn, an increase of 8pc (6pc, adjusting for currency) from the 2007 period. Revenues from outside the US accounted for 65pc of the total.

Total global services revenues grew 17pc (9pc, adjusting for currency) with strong double-digit growth in all lines of businesses. Revenues from the global technology services segment increased 17pc (9pc, adjusting for currency) to US$9.7bn, while the global business services unit reported a revenue increase of 17pc (9pc, adjusting for currency) to US$4.9bn.

During the quarter, IBM signed services contracts totaling US$10.8bn, the company said.

Revenues from the software unit were up 14pc to US$4.8bn.

IBM repurchased shares costing US$2.7bn during the quarter.

By Niall Byrne