rest of the IT industry is battening down the hatches for economic chaos, IBM is doing very nicely.
Big Blue sees announced positive preliminary earnings for the third quarter of 2008. Not only are profits up, but it expects things to get better. IBM said net income rose 20 percent to reach $2.8 billion, while revenue rose 5 percent to $25.3 billion.
Analysts peered out from their sackcloth and ashes and were really surprised. Chuck Jones, a technology analyst for Atlantic Trust Private Wealth Management, told Reuters that it was nice to see some positive news for a change. IBM said next year it expects its earnings to grow by 22 percent. It also has $9.8 billion in its bank account ,which is always good to have.
Mike Holland, chairman of investment company Holland, told Reuters that in these ‘interesting times’ it was amazing to see an outfit confirming their outlook through to the end of the year.