Thu 18 Jan 2007
IBM Q4 Earnings Release: Long-term Outlook Good, Short-term Bad
Posted by Greg under General, Performance, News
IBM released earnings after the bell today and the news was largely good. Revenue rose 7.5% to $26.4 billion and profit was up $3.54 billion, or $2.31 a share, up from $3.19 billion last year. That was slightly above “expectations”, but press has been glowing of late (another great IBM article was in this month’s FastCompany (subscription required) , talking about how math can be sexy). It looks like IBM’s stock will dip for at least a few day (like I know what I’m talking about) but I really believe this is going to be a big year for the company.
The encouraging part of the release was that services division is growing much faster than it had been (maybe IBM wasn’t lying when they said there were some contracts in Q3 that were held up). The blemish on earnings was the hardware division, which, other than Bob Hoey’s fine advertisements, have been pretty neglected. That said, IBM will fare as their services division does. Great quarter IBM.
Tags:No Tags
January 19th, 2007 at 9:17 am
Hey Greg,
Thought I’d point out this post on my blog which looks at the WebSphere portfolio’s revenue growth, even in the face of open source competition. There are lots of folks who think that IBM, and other traditional software vendors, are doomed against open source vendors. I disagree, as long as these vendors get into the game and do what’s right for customer choice and increasing the value of the customer’s investments. That’s exactly what we did with WAS Community Edition (WAS CE)