IBM has reported revenue of $22.9bn for the first quarter of 2010, up 5%, or flat after the currency adjustments, compared to same period last year.
The company posted a total gross profit margin of 43.6%, up 0.2 percentage points compared to 43.4% in the first quarter of previous year, led by improving margins in both services segments and software.
For the first quarter of 2010, net income increased 13% to $2.6bn, compared to $2.3bn for the same period a year ago. The diluted earnings increased 16% to $1.97 per share from $1.70 per share.
Geographically, the America’s revenue which is the IBM’s biggest market increased 2% to $9.5bn and the revenue from the Europe/Middle East/Africa increased 5% to $7.6bn, while Asia-Pacific revenues increased 10% to $5.3bn.
Total global services revenue increased 4%, global technology services segment revenue increased 6% to $9.3bn, while global business services segment revenue was flat at $4.4bn compared to same period a year ago.
The revenue from the software segment rose 11% to $5bn and revenue from IBM’s key middleware products, which include WebSphere, information management, Tivoli, Lotus and rational products were $2.8bn, an increase of 13% compared to same period last year. The systems and technology segment revenue increased 5% to $3.4bn compared to same period last year.
IBM signed services contracts totalling $12.3bn, at actual rates, a decrease of 2%, including 13 contracts greater than $100m. Strategic outsourcing signings increased 6%.
Samuel Palmisano, chairman, president and chief executive officer of IBM, said: “In the first quarter, we drove significantly improved revenue growth rates from the fourth quarter across our businesses and geographies. We had strong results in strategic investment areas including growth markets, business analytics and Smarter Planet solutions.
“Looking ahead, we are confident in our ability to grow revenue, and given our mix of higher-value business and productivity we will expand margins, grow profit, cash and EPS, and increase returns to shareholders. Thus, we expect full-year 2010 diluted earnings per share of at least $11.20.”
