IBM: cuts in operational expenses boost results


IBM: cuts in operational expenses boost results

Cliff Saran

IBM reported revenues of $21.7bn for the first quarter of 2009,a drop of 11% compared to the first quarter of 2008. IBM ended the first quarter of 2009 with $12.3bn of cash in hand and generated free cash flow of $1.0bn, up $450m year over year.

The company stated that Global Business Services revenues decreased 10% to $4.4bn. IBM signed services contracts totalling $12.5bn, including 16 contracts greater than $100m.

Revenues from the software segment were $4.5bn, a decrease of 6%. However, the company said revenues from its rational software, integrated tools to improve the processes of software development, increased 9%.

"IBM continued to perform well in a very difficult economic environment. This was due to our long-term strategic focus: shifting into software and services, divesting of commodity businesses, and creating solutions that help clients reduce cost and conserve capital. At the same time we have a disciplined approach to cost and expense management giving us a strong financial position," said Samuel J Palmisano, IBM chairman, president and chief executive officer.

Email Alerts

Register now to receive IT-related news, guides and more, delivered to your inbox.
By submitting your personal information, you agree to receive emails regarding relevant products and special offers from TechTarget and its partners. You also agree that your personal information may be transferred and processed in the United States, and that you have read and agree to the Terms of Use and the Privacy Policy.

COMMENTS powered by Disqus  //  Commenting policy