IBM announced that its third-quarter 2009 profits were up 14 percent to $3.2 billion compared to $2.8 billion for the same period in 2008.
IBM announced that its third-quarter 2009 profits were up 14 percent
to $3.2 billion compared to $2.8 billion for the same period in 2008.
Despite the boost in net income, IBM's overall revenues decreased by
seven percent compared to the same period last year, but revenues
increased one percent over IBM's second quarter 2009 numbers.
Again, as with recent quarterly results, IBM touted its move to
higher-value deals as key to improving the company's bottom line. And
during a conference call with analysts, Mark Loughridge, IBM's senior
vice president and chief financial officer, said he expects IBM to see
an increase in revenue in the fourth quarter of 2009.
"Our long-term strategic shift to higher-value businesses again
enabled us to deliver outstanding margin, earnings and cash flow growth
in the third quarter," said Samuel J. Palmisano, IBM chairman,
president and CEO, said in a statement. "We also saw improved revenue
trends in our business and share gains in software and hardware. We
continued to invest for growth in areas where clients see potential for
value creation including Smarter Planet solutions, cloud computing and
advanced business analytics."
IBM said it gained market share in WebSphere, Information Management, Tivoli and Rational software during the third quarter.
Revenues from IBM's Software Group were $5.1 billion, a decrease of
3 percent. However, revenues from IBM's key middleware products, which
include WebSphere, Information Management, Tivoli, Lotus and Rational
products, were $2.9 billion, an increase of 2 percent when compared to
the third quarter of 2008.
Revenues from IBM's WebSphere family of products increased 14
percent year over year. Revenues from IBM's Information Management
software were flat. Revenues from Tivoli software increased 5 percent,
and revenues from Lotus software decreased 9 percent. And revenues from
IBM's Rational tools software increased 2 percent.
Meanwhile, IBM's total Global Services revenues decreased 7 percent.
IBM's Global Technology Services segment revenues decreased 4 percent
to $9.4 billion. And the company's Global Business Services segment
revenues decreased 11 percent to $4.3 billion.
In addition, revenues from IBM's Systems and Technology division dropped 12 percent to $3.9 billion.