IBM reports 10 percent jump in profit for Q4

The company reported its first revenue increase since the third quarter of 2008

IBM on Tuesday reported a 10 percent jump in profit for the fourth quarter as revenue increased at the company for the first time in more than a year.

IBM reported a profit of $US3.59 per share, up from $US3.27 in the same quarter last year and ahead of the $US3.47 that financial analysts had been expecting, according to Thomson Reuters.

Revenue for the quarter was $US27.2 billion, up 1 percent from the same period last year. Analysts had been expecting revenue to be essentially flat with the year earlier. It was the first year-over-year revenue growth IBM has reported since the third quarter of 2008. Quarterly net income was $US4.8 billion, up 9 percent from the same quarter last year.

"We are confident about 2010 and our ability to achieve the high end of our long-term roadmap," Chairman and CEO Sam Palmisano said in a statement.

A 3 percent drop in sales from the Americas was offset by a 2 percent increase in Europe, the Middle East and Africa, and a 6 percent increase in Asia. IBM's results benefitted from currency fluctuations. At constant currency, IBM's overall revenue would have declined 5 percent, the company said.

Revenue from IBM Global Services was up 2 percent, and software revenue increased by the same amount. WebSphere sales were up 13 percent year over year, IBM said.

Sales from its Systems and Technology segment, which includes IBM's servers, continued to decline, but by less than in recent quarters. Overall revenue for the segment was down 4 percent to $US5.2 billion. System p and System z products saw revenue decline by 14 percent and 27 percent, respectively, while sales of System x servers increased 37 percent, IBM said.

The results are the latest sign that IT spending is gradually recovering. Last week Intel reported a fourth-quarter profit of $US2.28 billion, or $US0.40, an improvement from a year earlier despite including a $US1.25 billion legal settlement with Advanced Micro Devices. Intel's revenue was up 28 percent, though largely on consumer sales.

Also last week Forrester Research said the U.S. IT market will grow by 6.6 percent this year and declared the tech downturn of 2008 and 2009 to be "unofficially over." As evidence it cited a 4 percent increase in fourth-quarter revenue reported by Oracle, and the "cautious optimism" for 2010 expressed by Accenture.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags IBMrevenuefinancial resultsprofit

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

James Niccolai

IDG News Service
Show Comments

Cool Tech

Breitling Superocean Heritage Chronographe 44

Learn more >

SanDisk MicroSDXC™ for Nintendo® Switch™

Learn more >

Toys for Boys

Family Friendly

Panasonic 4K UHD Blu-Ray Player and Full HD Recorder with Netflix - UBT1GL-K

Learn more >

Stocking Stuffer

Razer DeathAdder Expert Ergonomic Gaming Mouse

Learn more >

Christmas Gift Guide

Click for more ›

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?