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IBM fights back with solid Q4 financials


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Big Blue rebounds from the recession with nine per cent year-on-year increase in net income

IBM today offered strong signs that the recession is all but over, posting a healthy nine per cent year-on-year increase in net income, and fourth quarter figures of $4.8bn (£2.9bn), also a nine per cent year-on-year increase.

Revenue for the quarter totalled $27.2bn (£16.7bn), a large proportion of which came from IBM's growing consulting business. Signed services contracts reached $18.8bn (£11.5bn), an increase of nine per cent since the same period last year.

"IBM continued to benefit from our strategic transformation, offerings that our clients value in this economy, and our commitment to developing countries around the world," said IBM chairman, president and chief executive Samuel Palmisano.

"We are confident about 2010 and our ability to achieve the high end of our long-term roadmap."

The company said that it expects 2010 earnings per share to total at least $11 (£6.75).

IBM's software revenues for the quarter rose two per cent year-on-year, helping to absorb the impact of a continuing decline in its Systems and Technology hardware division, which recorded a four per cent loss over the period.

IBM last week announced its largest ever cloud computing deployment, migrating more than 100,000 Panasonic employees from Microsoft Exchange to IBM LotusLive.

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