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IBM beats expectations as profits rise 26 per cent

Business Materials 17 April 2008 03:33 (UTC +04:00)

( dpa ) - Technology powerhouse International Business Machines Corp (IBM) reported first quarter profits of 2.32 billion dollars Wednesday, a 26 per cent rise from the year ago period. The higher-than-expected quarterly earnings came on revenues of 24.5 billion dollars, up 11 per cent from last years.

Propelling the growth was a 45 per cent rise in income from the company's Global Technology Services division and a 23 per cent gain in income for its Global Business Services. Software revenue were up 14 per cent.

The company also surged on the fall of the dollar. It said that 65 per cent of its revenues originated outside the US. First-quarter revenues were 9.9 billion dollars in the Americas, an increase of 8 per cent or 6 per cent, adjusting for currency. Revenues from Europe/Middle East/Africa were 8.8 billion dollars, up 16 per cent or 4 per cent, adjusting for currency. Asia-Pacific revenues increased 14 per cent or 3 per cent adjusting for currency to 5.1 billion dollars.

"These results reinforce our confidence in IBM's ability to perform well in a dynamic global economy," said Samuel J Palmisano, IBM chairman, president and CEO. "IBM (has) 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."

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