Arik Hesseldahl

Recent Posts by Arik Hesseldahl

IBM Results Beat Expectations on Strong Hardware Sales

Computing giant IBM reported earnings of $5.3 billion, or $4.18 a share, on revenue of $29 billion. Per-share profits were up 16 percent, and sales grew 9 percent. Analysts had been looking for $4.08 EPS.

The results were led by strong growth in sales of IBM’s System Z mainframe servers, which were up 69 percent. That contributed to a 21 percent boost in sales in the Systems and Technology segment, which totaled $6.3 billion. Software sales were $7 billion, up 7 percent. Services revenue was $10.2 billion, up 2 percent.

It finished the year with earnings of $11.52, up 15 percent, on sales of $99.9 billion, which were up 4 percent form 2009. It was the eighth year in a row of double-digit per-share profit growth.

Looking ahead to the new fiscal year, IBM said it expects per-share earnings of at least $12.56 on a GAAP basis and at least $13 on a non-GAAP basis. This would put it on track to meet its road map that calls for earning of at least $20 a share in operating profit by 2015.

IBM shares rose 65 cents to close at $150.65 on the New York Stock Exchange, which amounts to a record, and climbed as high as $155 in after-hours trading.

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I think the NSA has a job to do and we need the NSA. But as (physicist) Robert Oppenheimer said, “When you see something that is technically sweet, you go ahead and do it and argue about what to do about it only after you’ve had your technical success. That is the way it was with the atomic bomb.”

— Phil Zimmerman, PGP inventor and Silent Circle co-founder, in an interview with Om Malik