Once again, software is a key driver of growth for IBM, as Big Blue saw software profits rise 12 percent on software revenue of $5.6 billion for the first quarter of 2012.
) announced first-quarter
2012 profits of $3.1 billion, spurred by increases in software, services and
first-quarter net income of $3.1 billion when compared with $2.9 billion in the
first quarter of 2011 represents an increase of 7 percent. Meanwhile, total
revenue for the first quarter of 2012 of $24.7 billion was flat from the first
quarter of 2011, the company reported.
the first quarter, we drove strong profit and earnings per share growth, said
Ginni Rometty, IBM president and CEO, in a statement. We delivered another
excellent software performance, expanded services margins, and continued the
momentum in our growth initiatives. Our investments in growth market countries
continued to generate strong revenue growth across software, hardware and
services while contributing to the companys ongoing margin expansion. Based on
this performance, we are raising our 2012 full-year operating earnings per
share expectations to at least $15.00.
from the companys growth markets increased 9 percent, and 40 countries had
double-digit revenue growth. Revenue in the BRIC countriesBrazil,
Russia, India and Chinaincreased 10 percent, IBM said. Regarding regions,
the Americas first-quarter revenue was $10.5 billion, an increase of 1 percent
from the 2011 period. Revenue from Europe/Middle East/Africa was $7.6 billion,
down 2 percent, and Asia-Pacific revenue increased 4 percent to $6.1 billion.
OEM revenue was $509 million, down 17 percent compared with the 2011 first
revenue from IBMs software business was $5.6 billion, an increase of 5 percent
compared with the first quarter of 2011. Revenue from IBMs key middleware
products, which include WebSphere, Information Management, Tivoli, Lotus and
Rational products, was $3.5 billion, an increase of 7 percent versus the first
quarter of 2011. And operating systems revenue of $590 million increased 9
percent compared with the prior-year quarter.
its part, revenue from the WebSphere family of software products increased 16
percent year over year. Information Management software revenue increased 5
percent. Revenue from Tivoli software increased 5 percent. Revenue from Lotus
software was flat, and Rational software increased 1 percent, IBM said.
revenue from the companys business analytics operations across services,
software and hardware segments increased 14 percent.
continued our strong performance in software, said Mark Loughridge, senior
vice president and chief financial officer for Finance and Enterprise
Transformation at IBM, in a call with analysts. Software profits were up 12
percent, driven by growth in business analytics, cloud and Smarter Planet
businesses, he said.
said IBMs growth initiatives of business analytics sales rose 14 percent year
over year, cloud-related revenue doubled and Smarter Planet revenue grew more
than 25 percent year over year. In addition, growth markets, another of IBMs
key growth initiatives, grew 9 percent year over year.
its services business, IBMs Global Technology Services segment revenue
increased 2 percent to $10.0 billion, and the companys Global Business
Services segment revenue was down 2 percent to $4.6 billion.
revenue from the Systems and Technology segment totaled $3.7 billion for the
quarter, down 7 percent from the first quarter of 2011. Total systems revenue
decreased 6 percent. Revenue from Power Systems was flat compared with the 2011
period. Revenue from System x was also flat. Revenue from System z mainframe
server products decreased 25 percent compared with the year-ago period. Total
delivery of System z computing power, as measured in MIPS (millions of
instructions per second), decreased 5 percent. Revenue from System Storage
decreased 4 percent, and revenue from Retail Store Solutions decreased 13
percent year over year. Revenue from Microelectronics OEM decreased 13 percent.
announced plans to sell
its Retail Store Solutions business to Toshiba TEC
for $850 million.