US based information technology behemoth IBM, has announced its end quarter results which indicated an increase in the net income to $ 2.6 billion, from the previous figure of $2.3 billion.
This works out to $ 1.97 a share against $ 1.70 a share in the same quarter last fiscal. Meanwhile IBM shares registered a drop of 1.9 percent to close at $129.69 on Tuesday indicating that industry analysts were possibly expecting a higher return from Big Blue.
The increase in the net profit and the revenue, which rose by 5 percent, suggest that the economy is on the verge of complete recovery as companies begin to stabilise under current market situations and increase their IT spendings.
Expressing his views on the subject, Big Blue's Chief Financial Officer, Mark Loughridge, said during a conference call with analysts that “We're encouraged by our performance in the first quarter and the position we're in for the rest of the year.”
The company, which registered a rise of 6.3 percent to $9.3 billion in its revenue from global technology services, credited the increase in net profit and revenue to timely job cuts, launch of new high-end mainframes and increase in services revenue.
However, IBM suffered a two percent decrease in its revenue from new service contract signings, which were registered at $12.3 billion, while revenue from Global Financial Services segment fell by 7 percent to $537 million.
(Local Tech Wire)