Menu
IBM posts strong Q4 profits, no layoffs announced

IBM posts strong Q4 profits, no layoffs announced

IBM posted strong Q4 results Tuesday and made no indication layoffs are imminent.

IBM on Tuesday reported fourth-quarter fiscal 2008 revenue of US$3.28 per share, a 17 percent increase year-over-year, but said total revenues for the quarter dropped 6 percent to $27 billion.

Analysts polled by Thomson Financial Network had on average predictedearnings of $3.03 per share and $28.15 billion in revenue.

Net income for the fourth quarter was $4.4 billion, a 12 percent increase over 2007. For the full year, IBM posted company records for revenue, with $103.6 billion; pre-tax profit, with $16.7 billion; and earnings per share at $8.93.

The company also said it expected earnings per share of at least $9.20 in 2009.

IBM said the strong dollar contributed to its drop in fourth-quarter 2008 revenue. When adjusted for currency fluctuations, revenue would have fallen 1 percent, the company said.

Software revenue grew 3 percent, but Global Technology Services and Global Business Services fell 4 percent and 5 percent, respectively, an indication that customers are pulling back somewhat on IT projects. However, IBM also reported service engagements worth $17.2 billion, including some 24 deals with a price tag higher than $100 million.

The company's press release made no mention of layoffs, which have been the subject of rampant rumors in recent weeks.

"Right now we're in wait-and-see mode," said Lee Conrad, national coordinator of the Alliance at IBM/CWA Local 1701, a union that is trying to organize workers at IBM, in an interview prior to the earnings release. "We do know people have been told to look for other jobs."

The union is calling on IBM to take certain measures to avoid layoffs, such as suspending its stock buyback program, eliminating executive positions and cutting executive pay. It also wants IBM to be transparent about where any job cuts are taking place and whether they are being moved offshore.

If it does cut jobs, IBM would be only the latest of its peers in the tech industry to do so as the worldwide economic crisis continues.

Forrester Research recently predicted that global IT spending would drop slightly overall this year, but then rebound in 2010.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Featured

Slideshows

The making of an MSSP: a blueprint for growth in NZ

The making of an MSSP: a blueprint for growth in NZ

Partners are actively building out security practices and services to match, yet remain challenged by a lack of guidance in the market. This exclusive Reseller News Roundtable - in association with Sophos - assessed the making of an MSSP, outlining the blueprint for growth and how partners can differentiate in New Zealand.

The making of an MSSP: a blueprint for growth in NZ
Reseller News Platinum Club celebrates leading partners in 2018

Reseller News Platinum Club celebrates leading partners in 2018

The leading players of the New Zealand channel came together to celebrate a year of achievement at the inaugural Reseller News Platinum Club lunch in Auckland. Following the Reseller News Innovation Awards, Platinum Club provides a platform to showcase the top performing partners and start-ups of the past 12 months, with more than ​​50 organisations in the spotlight.​​​

Reseller News Platinum Club celebrates leading partners in 2018
Meet the top performing HP partners in NZ

Meet the top performing HP partners in NZ

HP has honoured its leading partners in New Zealand during 2018, following 12 months of growth through the local channel. Unveiled during the fourth running of the ceremony in Auckland, the awards recognise and celebrate excellence, growth, consistency and engagement of standout Kiwi partners.

Meet the top performing HP partners in NZ
Show Comments