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Hardware shines for IBM in third quarter

Microscope contributor

Hardware sales overshadowed software and services last night as IBM unveiled a decent set of financials for the third quarter.

Turover grew 4% on a constant currency basis to $24.3bn as profits went up 12% to $3.6bn for the three months ended 30 September.

"This quarter, we continued the trend of improving business performance," said Mark Loughridge, CFO at Big Blue.

Total Global Services revenues grew 2% to $14.1bn; Global Technology Services sales were up 1% to $9.5m, Global Business Services grew 5% to $4.6b and Outsourcing signings were down 14% to $5.7bn.

Software revenue rose 2% to $5.2bn; Websphere grew 16%, Information Management
was up 7%, Relational Database was up 5%, Tivoli grew 9% and Lotus returned to modest growth.

However, it was the Systems and Technology segment that outshone the other business units, up 10% to $4.3bn. This included a 15% rise in System z sales as Power revenues declined 13%, though sales of mid-range systems unveiled in Q3 grew 11%.

"We continued the roll out of Power7 with the high end and entry products in mid-September. Shipments were limited though, with just two weeks of general availability in the quarter," said Loughridge.

Storage hardware revenue grew 8%, disk grew 14 driven by the DS8000 and XIV. Tape declined 8%.

The revitalisation of System x sales continued with revnues growth of 30%, following a restrucutre of the business unit at the top of 2009.

Related Topics: Desktop PCs, VIEW ALL TOPICS

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