New York: IMB announced Q1diluted earnings of $1.65 per share from continuing operations compared with diluted earnings of $1.21 per share in Q1 2007, an increase of 36%.
Q1 income from continuing operations was $2.3 billion compared with $1.8 billion in the Q1 2007, an increase of 26%. Total revenues for the Q1 2008 of $24.5 billion increased 11% from Q1 2007.
“IBM had a very good quarter, and a good start to 2008. We have repositioned our company over the past several years, as well as the hard work of IBMers across the globe,” said Samuel J. Palmisano, IBM chairman, president and chief executive officer.
The company today has a unique set of advantages: with global reach and scale, its strength lies in developing profitable growth segments, strong recurring revenue and profit streams, products and services that create real value for clients, and discipline and financial strength and flexibility that enables it to adjust its business model.
From a geographic perspective, Americas’ Q1 revenues were $9.9 billion, an increase of 8% as reported from the 2007 period. Revenues from Europe/Middle East/Africa were $8.8 billion, up 16%. Asia-Pacific revenues increased 14% to $5.1 billion. OEM revenues were $696 million, down 16% compared with the 2007 first quarter. Revenues from countries in IBM’s growth markets unit were up 11% at constant currency and represent about 17% of the company’s total revenue.
Total global services revenues grew 17% wth strong double-digit growth in all lines of businesses. Global Technology Services segment revenues increased 17% to $9.7 billion. Global business services segment revenues increased 17% to $4.9 billion.
IBM signed services contracts totaling $10.8 billion, adjusting for currency, down 2%. Short-term signings increased 6% to $5.6 billion, adjusting for currency. The company ended the first quarter with an estimated services backlog, including Strategic Outsourcing, Business Transformation Outsourcing, Integrated Technology Services, Global Business Services and Maintenance, of $118 billion, adjusting for currency, an increase of more than $2 billion year over year.
Revenues from the systems and technology segment totaled $4.2 billion for the quarter, down 7%. Revenues decreased 2% excluding the year-to-year impact of the Printing System Division divestiture in June 2007. Systems and technology revenues from System z server products increased 10% versus the year-ago period, which reflects successful introduction of new 10 enterprise class server. Total delivery of System z computing power, which is measured in MIPS (millions of instructions per second), increased 14%. Revenues from the System p UNIX server products increased 2% compared with the 2007 period and revenues from the System x servers were flat year over year. Revenues from the System i servers decreased 21%. Revenues from System Storage increased 10% and revenues from Technology decreased 20%.
Global financing segment revenues increased 3% in the first quarter to $633 million and the company’s total gross profit margin was 41.5% in the Q12008 compared with 40.2% in the 2007 period.
IBM’s effective tax rate in the first-quarter 2008 was 27.5% compared with 28.5% in the first quarter of 2007.