IBM Reports 2008 First-Quarter Results

No global slowdown yet! IBM reports a very good first quarter, up 11 percent, adjusted for the weak dollar up 4 percent, still very good. Revenue growth in the U.S. was also strong, up 6 percent after currency adjustment. This is even more so remarkable since IBM shows relative immunity to the troubles in the financial services sector, its largest customer segment.

key stats:

• Diluted earnings of $1.65 per share, up 36 percent


• Total revenues of $24.5 billion, up 11 percent (4 percent, adjusting for currency)


• Global Technology Services revenues up 17 percent; pre-tax income up 45 percent


• Global Business Services revenues up 17 percent; pre-tax income up 23 percent


• Software revenues up 14 percent; pre-tax income up 22 percent


• 65 percent of revenues from outside the U.S.; E/ME/A revenues up 16 percent; Asia Pacific up 14 percent; U.S. up 6 percent


• Services signings of $10.8 billion at constant currency, that is down 2 percent; $12.6 billion at actual rates


• The company's total gross profit margin was 41.5 percent in the 2008 first quarter compared with 40.2 percent in the 2007 period.

"We feel good about the rest of the year." said Samuel J. Palmisano, IBM chairman, president and chief executive officer.