IBM reports slight drop in profits

 

IBM has reported a one per cent drop in profits in its quarterly earnings statement but is bullish about the future of 2009.

Speaking at a press call chief financial officer Mark Loughridge said that prior restructuring from IBM, to move it away from relying on hardware, had left it well placed to survive the downturn.

“We’ve built a more resilient business model,” he said.

“This year all of pre-tax profit came from software, services and financing. Hardware sales are more vulnerable to downturns.”

This was shown in the 24 per cent decline in hardware revenues, with mainframe and server sales falling sharply, although UNIX server revenue held up. In comparison services revenue was down 10 per cent and software sales also down six per cent

Overall IBM’s quarterly revenue fell by 11 per cent to US$21.71 billion, but the company said that seven per cent of that figure was down to the increased strength of the American dollar. Profit fell one per cent to $2.30 billion.

The company did particularly well from government spending this quarter, with new signings from the public sector up 200 per cent.

IBM is now putting more emphasis on global markets in emerging nations he continued.

Sales in India were up 12 per cent, making IBM the largest supplier and up 11 per cent in China.

Copyright ©v3.co.uk


IBM reports slight drop in profits
 
 
 
Top Stories
Photos: Global Switch opens Sydney East data centre
First stage opened, to some fanfare.
 
ATO releases long-awaited Bitcoin guidance
Everyday investors escape the tax man.
 
Why the Weather Bureau’s new supercomputer is a 'gamechanger'
IT transformation starts to reap results.
 
 
Sign up to receive iTnews email bulletins
   FOLLOW US...
Latest Comments
Polls
Which is the most prevalent cyber attack method your organisation faces?




   |   View results
Phishing and social engineering
  67%
 
Advanced persistent threats
  3%
 
Unpatched or unsupported software vulnerabilities
  12%
 
Denial of service attacks
  7%
 
Insider threats
  11%
TOTAL VOTES: 477

Vote