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IBM reports Q4 2009 and full year results

21 January 2010 , Written by Dhruv Tanwar
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For the fourth quarter (Q4) 2009, IBM reported earnings of $3.59 per share, up 10 percent against earnings from the same period a year ago. Revenue was $27.2 billion, up one percent against Q4 of 2008, though it was down five percent after adjusting for currency. Net income reported was $4.8 billion, up nine percent, while gross profit margin was 48.3 percent, up 0.4 points. IBM's pre-tax income of $6.4 billion was up 10 percent against Q4 2008, while pre-tax margin of 23.4 percent was up 1.9 points.

IBM reported services signings of $18.8 billion, an increase of nine percent, saying that global services revenue was up two percent while pre-tax income up seven percent. IBM's software revenue was up two percent and pre-tax income was up 10 percent. Its systems and technology revenue was reported to be down by four percent, even as pre-tax income was up 15 percent. IBM said growth markets revenue was up 14 percent.

For the full year of 2009, IBM notched up diluted earnings per share of $10.01, up 13 percent from a year ago, marking the seventh consecutive year of double-digit EPS growth, it said in its statement. It recorded net income of $13.4 billion, an increase of nine percent and a gross profit margin of 45.7 percent. Its free cash flow was $15.1 billion, up $0.8 billion. The company returned $10.3 billion to shareholders through $2.9 billion in dividends and $7.4 billion of share repurchases.

For the full year Year 2010, IBM expects earnings-per-share to be at least $11.00. Samuel J Palmisano, IBM chairman, president and chief executive officer said the company benefited from its strategic transformation, its offerings that clients valued in “this economy”, and its commitment to developing countries around the world. He said in 2009, IBM invested in opportunities such as Smarter Planet solutions, cloud computing and advanced analytics, which positioned IBM to grow as the economy recovers.
 

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