View IBM Q3 Earnings Report

Highlights:

• The Americas' third-quarter revenues were $10.9 billion, an increase of 7 percent (6 percent, adjusting for currency) from the 2010 period.
  
• Revenues from Europe/Middle East/Africa were $8.0 billion, up 9 percent (flat, adjusting for currency). Asia-Pacific revenues increased 10 percent (1 percent, adjusting for currency) to $6.5 billion.
• OEM revenues were $743 million, down 8 percent (8 percent, adjusting for currency) compared with the 2010 third quarter.
• Revenues from the company's growth markets increased 19 percent (13 percent, adjusting for currency). Revenues in the BRIC countries - Brazil, Russia, India and China - increased 17 percent (13 percent, adjusting for currency). Growth markets revenue represents 23 percent of IBM's total geographic revenue for the third quarter.
• Total Global Services revenues increased 8 percent (2 percent, adjusting for currency). Global Technology Services segment revenues increased 9 percent (3 percent, adjusting for currency) to $10.3 billion. Global Business Services segment revenues were up 6 percent (flat, adjusting for currency) at $4.8 billion.
• Revenues from the Software segment were $5.8 billion, an increase of 13 percent (8 percent, adjusting for currency). Software pre-tax income of $2.2 billion was up 12 percent year over year.
• Revenues from the Systems and Technology segment totaled $4.5 billion for the quarter, up 4 percent (1 percent, adjusting for currency) from the third quarter of 2010. Systems and Technology pre-tax income was $318 million, an increase of 8 percent year over year.
• Global Financing segment revenues decreased 2 percent (6 percent, adjusting for currency) in the third quarter to $520 million. Pre-tax income for the segment decreased 4 percent to $481 million.
• Diluted EPS:
  • GAAP: $3.19, up 13 percent;
  • Operating (non-GAAP): $3.28, up 15 percent;
• Revenue: $26.2 billion, up 8 percent, up 3 percent adjusting for currency;
• Net income:
  • GAAP: $3.8 billion, up 7 percent;
  • Operating (non-GAAP): $4.0 billion, up 9 percent;
• Pre-tax income:
  • GAAP: $5.0 billion, up 7 percent;
  • Operating (non-GAAP): $5.2 billion, up 10 percent;
• Gross profit margin:
  • GAAP: 46.5 percent, up 1.2 points;
  • Operating (non-GAAP): 46.8 percent, up 1.5 points;
• Software revenue up 13 percent, 8 percent adjusting for currency;
• Services revenue up 8 percent, 2 percent adjusting for currency;
  • Services backlog of $137 billion, up $2.4 billion;
• Systems and Technology revenue up 4 percent, 1 percent adjusting for currency:
  • Power Systems up 15 percent;
• Growth markets revenue up 19 percent, 13 percent adjusting for currency;
• Business analytics revenue up 19 percent year to date;
• Smarter Planet revenue up 50 percent year to date;
• Cloud revenue year to date has doubled full-year 2010 revenue;
• Full-year 2011 Operating (non-GAAP) EPS expectations raised to at least $13.35 from at least $13.25.

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