IBM revenues up 7pc to US$26.3bn

19 Jan 2007

Technology juggernaut IBM last night revealed that fourth-quarter revenues were up 7pc to US$26.3bn, yielding the company profits of US$3.5bn, up 8pc on last year.

During the fourth quarter, the company revealed services signings of US$17.8bn, up 55pc on last year.

Revenues from IBM’s software division were US$5.6bn, up 14pc, while its Global Services business increased revenues 7pc to US$8.6bn.

Revenues from IBM’s Systems and Technology Group totalled US$7.1bn, up 3pc, while the company’s Global Financing division increased 3pc for the fourth quarter to US$620m.

The company’s total gross profit margin was 44.6pc in the fourth quarter, up slightly from 44.1pc in 2005.

“IBM had a terrific quarter and a good year with record cash performance, profit and EPS, as well as record payouts to shareholders,” said Sam Palmisano, IBM’s chairman and CEO.

“We are well positioned in the growth areas of a changing IT industry, focused on our evolving business model, and poised for long-term success for our clients and shareholders,” Palmisano added.

IBM employs over 3,200 people at its campus in Mulhuddart in west Dublin. Last July the company unveiled plans to create an additional 300 jobs as part of a €46m investment.

The investment will see growth in the company’s global supply chain operations, its business incubator operations as well as an increased focus on new technologies like service-oriented architecture at its software lab.

By John Kennedy