Despite a relatively low profit growth of 0.8 per cent, IBM has revealed profit growth of nine per cent for Q4 2009.
A total expense reduction of five per cent to $6.8 billion year-on-year meant that the company was able to retain revenue for the quarter, as well as post record net income of $13.4 billion for 2009 as a whole.
IBM’s total gross profit margin for the quarter was 48.3 per cent, up from 47.9 per cent in the previous quarter and making this the 21st quarter in 22 that margins have improved year-on-year.
“We concluded a strong year with a solid performance in the fourth quarter in which we again delivered growth in margins, profit and earnings,” said IBM’s chairman and CEO Samuel Palmisano. “IBM continued to benefit from our strategic transformation, offerings that our clients value in this economy, and our commitment to developing countries around the world.”