US computer giant IBM on Thursday reported third-quarter earnings slightly better than analysts’ expectations and said it was confident for the remainder of the year despite a slowing economy.
Net profits rose 19.6 percent in the third quarter, compared with the same period last year, to US$2.8 billion, while revenue rose 5 percent to US$25.3 billion, IBM said in a statement.
IBM said diluted earnings per share were US$2.05, higher than the forecast US$2.03 and up 22 percent from the US$1.68 per share in the third quarter of last year.
The results were in line with preliminary figures IBM released last week.
“We remain confident in our full-year 2008 outlook,” IBM chairman Samuel Palmisano said.
“Our results demonstrate that the combination of a steady base of recurring revenue and profits, a range of products and services that deliver value to clients worldwide, and a strong and flexible financial foundation give IBM a competitive edge in good times and tough times,” he said.
“These strengths along with our strategy to manage for productivity in major markets and to invest for growth in emerging countries have enabled IBM to thrive despite an economic environment that no one could have predicted,” he said.
By region, IBM said revenue in the Americas was up 3 percent to US$10.5 billion and 6 percent in Asia-Pacific to US$5.2 billion.
Revenue rose by 10 percent in Europe, the Middle East and Africa to US$8.9 billion. Revenue from other markets totaled US$673 million, down 24 percent compared with the third quarter of last year.
IBM said revenue from global technology services was up 8 percent to US$9.9 billion, while global business services revenue rose 7 percent to US$4.9 billion.
Software revenues were up 12 percent to US$5.2 billion, while IBM said it signed services contracts totaling US$12.7 billion, a decrease of 4 percent.
IBM’s stock rose 0.3 percent in after-hours trading in New York to US$91.80 after the earnings release.
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