IBM Q4 net income rises 9% to $4.81 bn

Technology giant IBM has reported nine per cent growth in fourth quarter net income at $4.81 billion on cost cutting measures and has raised its outlook for 2010.

In the year-ago period, the company had a net income of $4.42 billion, IBM said in a statement.

Total revenue rose to $27.23 billion in the fourth quarter ended December 31, 2009, from $27 billion in the same quarter last fiscal.

"We concluded a strong year with a solid performance in the fourth quarter, in which we again delivered growth in margins, profit and earnings," IBM Chairman President and Chief Executive Officer Samuel J Palmisano said.

IBM said it expects an earning of $11 per share for the full year 2010, up from earlier projections between $10 and 11 per share.

"We are confident about 2010 and our ability to achieve the high end of our long-term roadmap," Palmisano added.

IBM has boosted profitability by cost cutting moves as its total expense decreased 5 per cent to $6.8 billion compared with the year-ago period.

The tech giant has registered robust growth in services and software segment, while revenues from hardware business declined.

In terms of geographic location, the Americas' fourth-quarter revenues were $11.1 billion, a 3 per cent decrease from the 2008 period, while in the Asia-Pacific they grew 6 per cent to $5.8 billion.

The company's total gross profit margin was 48.3 per cent in the fourth quarter of 2009, up from 47.9 per cent in the year-ago period on improvements from services segments and, Systems and Technology.

During the quarter, total global services revenues increased two per cent.

Revenue from the software segment also rose two per cent at $6.6 billion compared to the fourth quarter of 2008.

The systems and technology segment's revenue was at $5.2 billion in the quarter under review, down 4 per cent from the same period last fiscal.

For the full year 2009, IBM posted a net income of $13.4 billion compared to $12.3 billion in 2008.

The company's revenue fell eight per cent to $95.8 billion in the year ended December 31, 2009.