Feeds

IBM misses memo on economic slowdown during Q2

Sold out

Security for virtualized datacentres

IBM has yet again shrugged off the global economic slowdown with second quarter profits leaping 22 per cent and revenues rising.

Although improvements were reported across most operations, IBM's bread-and-butter services division was the star of the show.

"I've got to say that this is one of the best quarters I've ever seen," said CFO Mark Loughridge, during the companies quarterly investor conference call.

Net income for the quarter was $2.77bn, up from $2.26bn a year earlier. Total revenues rose 13 per cent year-over-year to $26.8bn.

Revenues from software were $5.6bn, an increase of 17 per cent over least year. Systems and Technology revenues were $5.2bn, up 2 per cent year-over-year. IBM said the hardware buzz was driven by double-digit growth in mainframes, Unix servers and storage.

"We entered the second quarter with a strong deal pipeline, and this quarter, frankly, we were sold out," said Loughridge. "Performance was particularly strong in the Americas and Europe, as well as in the Financial Services Sector."

Total global services revenue grew 16 per cent. Breaking that down: tech services revenue was $10.1bn with significant growth reported from existing clients. Business services revenues increased 18 per cent to $5.1bn.

OEM revenues were $706m, down 17 per cent compared with Q2 2007. Sales in IBM's new growth markets organization increased 21 per cent, and represented 18 per cent of geographical revenues.

Big Blue's heavy investments in emerging markets helped avoid the economic malaise in the US and Europe. The company gets about two-thirds of its revenues from overseas sources.

Revenues in the Americas were up 8 per cent at $10.9bn. Europe/Middle East/Africa rose 20 per cent to $9.8bn. Asia-Pacific revenues increased 16 per cent to $5.3bn.

"IBM had an outstanding quarter and a strong first half for 2008. These results demonstrate that IBM has the ability to thrive in both emerging and established markets. Once again, IBMers performed very well around the world," said CEO Samuel Palmisano in a statement.

The company also had a cheery outlook for the rest of 2008, restating its goal to boost annual profits to as much as $11 a share by 2010 by cutting costs in the company's pension plan and continuing to emphasize growth outside of the US. ®

Providing a secure and efficient Helpdesk

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
Microsoft EU warns: If you have ties to the US, Feds can get your data
European corps can't afford to get complacent while American Big Biz battles Uncle Sam
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
prev story

Whitepapers

Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.