Computing giant IBM reported a better-than-expected rise in third-quarter profits last night on higher sales of its specialist business software and computer hardware. IBM has an Irish workforce of over 3,200.
The New York state-headquartered firm said it notched up net profits of $2.2 billion for the three months ended September 30, up 47% compared with $1.5 billion the same time last year.
Earnings per share came in at $1.45, up from $1.26 per share in the third quarter of 2005. This placed IBM's earnings ahead of Wall Street forecasts which had tallied earnings per share of $1.35.
'Our strong performance is the result of excellent execution and the repositioning of IBM's business model to capture the growth and profit areas of a rapidly changing IT industry,' IBM's CEO Samuel Palmisano said in a statement.
Overall revenues grew 5% to $22.6 billion compared with a year ago. IBM's financial results also revealed it was sitting on a bigger cash pile than it had hoarded 12 months ago. The company said it finished the quarter with $10.9 billion in cash on hand, up from $8.3 billion a year ago.
'The balance sheet remains strong, and the company is well positioned to take advantage of opportunities,' IBM said. Software revenues spiked 9% to $4.4 billion while hardware revenues also increased 9% to $5.6 billion.
The results were released days after IBM announced it was transferring its chief purchasing operations to China, marking the first time the headquarters of a global IBM division has been located outside the US. In May last year, IBM sold its personal computer unit to Chinese group Lenovo for $1.75 billion.
