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
Soft drinks and SoftLayer: A solution for hard times?
Coca-Cola Amatil's CIO Barry Simpson shares his story of cost-cutting, outsourcing and why his software developers to ride around in delivery trucks.
 
Optus considers breaking net neutrality in Australia
May charge Netflix, OTT providers for premium service.
 
AGL restructure sees CIO depart
Owen Coppage to leave after ten years.
 
 
Sign up to receive iTnews email bulletins
   FOLLOW US...
Latest Comments
Polls
Do you support the Government's data retention scheme?

   |   View results
Yes
  11%
 
No
  89%
TOTAL VOTES: 2374

Vote