14 DAY TRIAL // Good news from IBM as the preliminary results for the fourth quarter of 2007 just kicked in. According to the company's officials, fourth-quarter revenue stood at $28.9 billion, an increase of 10 percent over the same period in 2006, and have surpassed any expectations. The result is partly due to an aggressive policy over the server market, aided by comfortable exchange rates and sales outside the United States.
The corporation had diluted earnings of $2.80 per share, 24 percent more as compared to the $2.26 figures that were on in the fourth quarter of 2006. Previously to the report, Wall Street analysts placed the company's share value at about $2.60 per share.
The results were welcomed by the company's management team, who "blamed" it on the strong operational performance in Asia, Europe as well as in emerging countries. "The broad scope of IBM's global business, led by strong operational performance in Asia, Europe and emerging countries, drove these outstanding results," said Samuel Palmisano, IBM's chairman, president and chief executive.
The total revenue the company managed to squeeze last year was $98.6 billion, which reflects an 8 billion increase from 2006. According to the corporation spokespersons, the company had more than $16 billion in cash on hand at the end of 2007. One of the most prosperous sectors of IBM's business is the server market. IBM is one of the biggest supplier of blade servers in the world and the number one supercomputer producer globally.
Palmisano is confident in the company's long term evolution. "IBM is well-positioned as we begin 2008 as a result of our global business reach, solid recurring revenue stream and strong financial position. We are on track to achieve our long-term earnings-per-share roadmap objective in 2010," he said.
The company will issue a complete report regarding its financial status during a webcast on Thursday.