IBM has posted a 12 percent gain in quarterly profits, in stark contrast to other technology companies during the global economic downturn. The company reported net income of $3.4 billion and quarterly earnings of $3.28 per share, easily reaching Wall Street’s consensus of $3.03 per share.
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The gain is attributed to IBM’s strategy of focusing on its software business in recent years as opposed to hardware. Although IBM’s hardware sales dropped by 20 percent in the fourth quarter, this was countered by especially strong software sales.
Hardware industries are particularly vulnerable in an economic downturn due to production costs. Intel reported last week that its fourth-quarter profits fell by a whopping 90 percent.
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BY Chris Leggett
Source：thechannel
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