IBM profits up, 'confident' for year (AFP)
26 minutes ago
NEW YORK (AFP) - US computer giant IBM on Thursday reported third-quarter earnings slightly better than analysts' expectations and said it was confident for the remainder of the year despite the slowing economy.
Net profits rose 19.6 percent in the third-quarter, compared with the same period last year, to 2.8 billion dollars while revenue rose five percent to 25.3 billion dollars, IBM said in a statement.
IBM said diluted earnings per share were 2.05 dollars, higher than the forecast 2.03 dollars, and up 22 percent from the 1.68 dollars per share in the third quarter of 2007.
The results were in line with preliminary figures IBM released last week.
"We remain confident in our full-year 2008 outlook," IBM chairman Samuel Palmisano said.
"Our results demonstrate that the combination of a steady base of recurring revenue and profits, a range of products and services that deliver value to clients worldwide, and a strong and flexible financial foundation give IBM a competitive edge in good times and tough times," he said.
"These strengths along with our strategy to manage for productivity in major markets and to invest for growth in emerging countries have enabled IBM to thrive despite an economic environment that no one could have predicted."
By region, IBM said revenue in the Americas was up three percent to 10.5 billion dollars and six percent in Asia-Pacific to 5.2 billion dollars.
Revenue rose by 10 percent in Europe, the Middle East and Africa to 8.9 billion dollars. Revenue from other markets totaled 673 million dollars, down 24 percent compared with the third-quarter of 2007.
IBM said revenue from global technology services was up eight percent to 9.9 billion dollars while global business services revenue rose seven percent to 4.9 billion dollars.
Software revenues were up 12 percent to 5.2 billion dollars while IBM said it signed services contracts totalling 12.7 billion dollars, a decrease of four percent.
IBM's share price rose 0.31 percent in after-hours trading in New York to 91.80 dollars following the release of the results.