ARMONK, N.Y. — IBM today announced first-quarter income was US$1.8 billion for the first quarter of the year, up eight per cent from the same period a year ago.
Total revenues for the first quarter of 2007 of $22.0 billion (all figures in U.S. dollars) increased seven percent (four percent, adjusting for currency) from the first quarter of 2006.
“IBM’s good results in the quarter demonstrate the breadth of our global capabilities, the advantages of our business model and our focus on profitable growth,” said chairman and CEO Samuel Palmisano. “We continued to grow in the higher-value products and services that help our clients transform their businesses.
“We again grew gross profit margins and earnings, and continued to generate significant cash from operations. This gives us considerable financial capability to strengthen our position in the profitable growth segments and create further value for our investors.”
From a geographic perspective, the Americas first-quarter revenues were $9.1 billion, an increase of one percent as reported (1 percent, adjusting for currency) from the 2006 period. By comparision Asia-Pacific revenues were up 10 per cent.
Revenues from the Systems and Technology (S&T) segment totaled $4.5 billion for the quarter, up two percent (flat, adjusting for currency).
Revenues from the System p UNIX server products increased 14 percent compared with the 2006 period. Revenues from the System x servers increased seven percent, and revenues from the System i servers decreased 13 percent. Revenues from Microelectronics decreased seven percent and revenues from System Storage decreased one percent.
Revenues from the Software segment were $4.3 billion, an increase of nine percent (five percent, adjusting for currency) compared with the first quarter of 2006.
Revenues from IBM’s middleware products, which primarily include WebSphere, Information Management, Tivoli, Lotus and Rational products, were $3.2 billion, up 10 percent versus the first quarter of 2006.
