Tech giant IBM has exceeded its expected profits for 1QFY2011, according to the financial report that the company has just released.
The latest sales and profit figure from IBM indicates that companies who had been making due during the recession are now eager to upgrade their networks and other computing equipment, a good sign for IBM and the economy overall. IBM also raised its forecast for operating profit to $13.5 per share, up from an earlier figure of $13 per share.
IBM reported a ten percent rise in net income in the quarter, about $2.9 billion in growth. The company also reported $24.6 billion in revenue, which exceeded Wall Street expectation of $24 billion. IBM has been focusing on growing industries such as enterprise-class hardware development to weather the recession, a strategy that seems to be paying off.
According to business analysts IBM’s business strategy of emphasizing profits ahead of revenue growth has been a success. This strategy helps in aggressively pursuing high-growth markets overseas and also offering customers the best after sale services.
Followng the good news IBM has increased the estimates for the rest of the fiscal year. Other hardware firms such as Oracle have had similarly strong growth this quarter.