IBM 2Q09 Earnings Are Here
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IBM's 2Q earnings were just released.
Here's the net:
Net income was $3.1B, up 12%, and with a net margin of 13.3% (up 3.0 points).
Pre-tax income margin was 18.3%, up 4.1 points, the largest increase in more than 3 years.
Gross profit margin was 45.5%, up 2.3 points (and up 19 of the last 20 quarters).
Software pre-tax margin was up 8.3 points, and income up 24 percent, with full-year 2009 software PTI expected to grow at double-digit rate and reach $8B.
Services pre-tax margin was up 4.1 points, and income up 23%.
Services signings were up 3%, and strategic outsourcing signings were up 38% (both adjusting for currency).
There were 17 services deals greater than $100 million signed in the quarter, and public sector revenue was up 7% (also adjusting for currency).
As a headline, IBM's earnings per share were the highest for any first, second, or third quarter in company history.
Commented our CEO, Sam Palmisano: "As a result of our strategic transformation, we have a very strong business model that is delivering superior earnings, cash, and client value."
"We have continued our strategic investments in Smarter Planet solutions, business analytics and next generation data centers. As a result we are optimistic about how IBM is positioned to make the most of current growth opportunities as well as those that emerge as the economy recovers. We are well ahead of pace for our 2010 roadmap of $10 to $11 per share."
Go IBM team, go.
All those international flights in coach are paying off!
And all the details of IBM 2Q09 earnings available here.