IBM revenue down, net profit and forecast up

October 16, 2009 09:06:52 AM

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US computer giant IBM reported a 14-percent rise in quarterly net profit Thursday and delivered a more optimistic forecast for the full year.

IBM said net profit rose to 3.2 billion dollars, or 2.40 dollars per share, from 2.8 billion dollars a year ago, or 2.04 dollars per share, a year ago.

Wall Street analysts had predicted 2.38 dollars per share.

Revenue fell seven percent in the quarter to 23.6 billion dollars but was one percent higher than the previous quarter.

The company, which has weathered the global economic slowdown better than most major US corporations, raised its forecast for earnings per share for the year to "at least 9.85 dollars from at least 9.70 dollars."

"Our long-term strategic shift to higher-value businesses again enabled us to deliver outstanding margin, earnings and cash flow growth in the third quarter," said IBM chairman, president and chief executive Samuel Palmisano.

"We also saw improved revenue trends in our business and share gains in software and hardware," he said.

"We are optimistic about 2009 as we again raise our full-year expectations and we remain well ahead of pace for our 2010 roadmap of 10 dollars to 11 dollars per share," Palmisano said.