One of the world’s largest ICT organisations IBM has reported a 12pc increase in profits, despite revenues falling 13pc to US$23.3bn.
The company reported a profit of US$3.1bn and its earnings per share were up 18pc to US$2.32 per share, the highest for any first, second or third quarter in its history.
The company reported a 3pc increase in services signings and more than 17 deals valued at greater than US$100m each.
Public-sector revenues were up 7pc based on IBM’s emphasis on smart-energy solutions for cities and governments, and the company reported increased margins in services and software.
“As a result of our strategic transformation, we have a very strong business model that is delivering superior earnings, cash and client value,” said Samuel J Palmisano (pictured), IBM chairman, president and chief executive officer.
“We have continued our strategic investments in Smarter Planet solutions, business analytics and next-generation data centres.
“As a result, we are optimistic about how IBM is positioned to make the most of current growth opportunities, as well as those that emerge as the economy recovers. We are well ahead of pace for our 2010 roadmap of US$10 to US$11 per share.”
The company reported that revenues were down 9pc in the Americas, down 20pc in Europe and down 7pc in Asia-Pacific.
By John Kennedy