Net income up 9% on higher margins
IBM has reported revenue of $27.2bn for the fourth quarter of 2009, up 1%, or down 5% after the currency adjustments, compared to $27bn for the same period last year.
The company posted a total gross profit margin of 48.3%, up 0.4 percentage points compared to 47.9% in the fourth quarter of previous year, led by improving margins in both services segments and systems and technology. Overall gross profit margins improved year-to-year for the 21st time and total services gross profit margins improved year-to-year for the 19th time.
For the quarter ended December 31, 2009, net income increased 9% to $4.8bn, compared to $4.4bn for the same period a year ago. The diluted earnings increased 10% to $3.59 per share from $3.27 per share.
Geographically, the America’s revenue which is the IBM’s biggest market dropped 3% to $11.1bn and the revenue from the Europe/Middle East/Africa increased 2% to $9.7bn, while Asia-Pacific revenues increased 6% to $5.8bn.
Total global services revenue increased 2%, global technology services segment revenue increased 4% to $10.1bn, while global business services segment revenue dropped 3% to $4.6bn compared to same period a year ago.
The revenue from the software segment rose 2% to $6.6bn and revenue from IBM’s key middleware products, which include WebSphere, information management, Tivoli, Lotus and rational products were $4.1bn, an increase of 6% compared to same period last year. The systems and technology segment revenue decreased 4% to $5.2bn compared to same period last year, but increased sequentially.
For the full year ended December 31, 2009, the company’s revenue was down 8% to $95.8bn compared to $103.6bn last year. Net income increased 9% to $13.4bn from $12.3bn, dilute earnings increased 13% to $10.01bn per share from $8.89 per share last year. The company expects earnings-per-share of at least $11 for full year 2010.
Samuel Palmisano, chairman, president and chief executive officer of IBM, said: In 2009, we invested in opportunities such as smarter planet solutions, cloud computing and advanced analytics. These new capabilities position IBM to grow as the economy recovers.
The increased operational leverage we have established by creating a globally integrated enterprise will enable us to drive greater profits as revenue growth returns. We are confident about 2010 and our ability to achieve the high end of our long-term roadmap.”