IBM Q4 net income, revenue surges

The company's total revenues increased by 7 per cent from the year-ago period to USD 29 billion in the fourth quarter of 2010.

"We completed an outstanding year, with record profit and free cash flow, and exceeded the high end of our 2010 earnings per share roadmap objective," IBM Chairman President and Chief Executive Samuel Palmisano said.

"We will continue to focus on our long-term strategic initiatives -- growth markets, Smarter Planet Solutions, cloud and business analytics -- as we drive to achieve our new roadmap target of operating earnings per share of at least USD 20 in 2015," Palmisano further said.

In terms of geographical locations, Asia-Pacific has emerged as best performer with revenue rising by 14 per cent from year-ago period to USD 6.6 billion in the fourth quarter of 2010.

IBM said revenue from American operations rose nine per cent to USD 12.2 billion, while revenue from Europe, the Middle East and Africa declined two percent to USD 9.5 billion
During the quarter, the tech firm said software revenue was up 11 per cent, systems and technology revenue rose 21 per cent and mainframe computer revenue jumped 69 per cent indicating that corporates are again spending on technology.

The company further said that business analytics revenue climbed 19 per cent, while services revenue was two per cent higher.

For the year 2010, IBM said net profit surged 10 per cent to USD 14.8 billion while revenue was four per cent higher at USD 99.9 billion.

Looking ahead, IBM expects to post a net income of USD 12.56 per share for the year 2011.