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IBM Software and Services Contribute to Strong 2011


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IBM had another strong year in 2011, announcing that both revenues and net income for the year were up by 7%. Revenues for 2011 totaled $106.9 billion, compared with $99.9 billion in 2010. Net income rose to $15.9 billion from $14.8 billion the year before.

Software segment revenues in 2011 totaled $24.9 billion, an increase of 11%. Systems and Technology segment revenues were $19.0 billion, an increase of 6%. Total Global Services revenues increased 7%. Revenues from the Global Technology Services segment totaled $40.9 billion, an increase of 7% compared with 2010. Revenues from the Global Business Services segment were $19.3 billion, up 6%. Global Financing segment revenues totaled $2.1 billion, a decrease of 6%.

IBM also released sales figures from the most recent quarter, which were up 2% over the same quarter a year ago, totaling $29.5 billion. Rising software sales offset disappointing hardware results. System z sales also were weaker in the fourth quarter of 2011.

Revenues from the systems and technology segment totaled $5.8 billion for the quarter, down 8% from the fourth quarter of 2010. Total systems revenues decreased 7%. Revenues from System z mainframe server products decreased 31% compared with the year-ago period which was the first full quarter after a new product introduction. Total delivery of System z computing power, as measured in MIPS (millions of instructions per second), decreased 4%. Revenues from System x decreased 2%, and revenues from System Storage decreased 1%.

Revenues from Power Systems increased 6% compared with the 2010 period, however.

Revenues from the software segment rose 9%, $7.6 billion, driven by increases in revenues from key middleware products, which include WebSphere, Information Management, Tivoli, Lotus and Rational products ($5.2 billion, an increase of 11% versus the fourth quarter of 2010. Operating systems revenues of $710 million increased 3% compared with the prior-year quarter.

Revenues from the WebSphere family of software products increased 21% year over year. Information Management software revenues increased 9%. Revenues from Tivoli software increased 14%. Revenues from Lotus software decreased 2%, and Rational software increased 4%.

"We had a strong fourth-quarter performance, capping a year of record earnings per share, revenue, profit and free cash flow," Ginni Rometty, IBM president and chief executive officer, said in a statement released with the results. "We delivered outstanding results in all four of our strategic initiatives for the quarter and the year, as we continued to realize the benefit of our long-term investments in growth markets, business analytics, Smarter Planet solutions and cloud. We are well on track toward our long-term roadmap for operating earnings per share of at least $20 in 2015."

Details are available at the IBM website.


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