Feeds

IBM misses memo on economic slowdown during Q2

Sold out

Top 5 reasons to deploy VMware with Tegile

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. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
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
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
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.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.