Beats analysts estimates
Last modified on Wednesday, 17 October 2007 14:10
International Business Machines Inc. has reported a third quarter 6 percent profit increase, with the profit coming from its services division that overcame a decline in IBM’s hardware business.
IBM’s CEO, Samuel J. Palmisano, issued a statement that the company was going through a hardware business “transition,” as prices of its huge business mainframe computers declined as much as 31 percent compared to the same time period last year.
IBM has improved its year to year profitability over the past 12 consecutive quarters.
IBM indicated that revenue growth was its highest since 2003 in the services sector. Its Global Services Division rose 14 percent and Services contracts accounted for a Q3 total of $11.8 billion, a 12 percent increase over last year; the Systems and Technology group revenue for Q3 was $4.9 billion, a 10 percent decrease. IBM’s software business reported a Q3 revenue increase of 7 percent to $4.7 billion, which was fueled by various company acquisitions totaling more than $5 billion as well as job cuts.