- Total revenues of $22.0 billion, up 7 percent as reported;
- Diluted earnings of $1.21 per share from continuing operations, up 12 percent;
- Gross profit margin increased year to year for the 11th consecutive quarter.
ARMONK, N.Y., April 17, 2007 . . . IBM (NYSE: IBM) today announced first-quarter 2007 diluted earnings of $1.21 per share from continuing operations, an increase of 12 percent as reported, compared with diluted earnings of $1.08 per share in the first quarter of 2006. First-quarter income from continuing operations was $1.8 billion compared with $1.7 billion in the first quarter of 2006, an increase of 8 percent. Total revenues for the first quarter of 2007 of $22.0 billion increased 7 percent (4 percent, adjusting for currency) from the first quarter of 2006.
"IBM's good results in the quarter demonstrate the breadth of our global capabilities, the advantages of our business model and our focus on profitable growth," said Samuel J. Palmisano, IBM chairman, president and chief executive officer. "We continued to grow in the higher-value products and services that help our clients transform their businesses. We again grew gross profit margins and earnings, and continued to generate significant cash from operations. This gives us considerable financial capability to strengthen our position in the profitable growth segments and create further value for our investors."
Revenues from the Software segment were $4.3 billion, an increase of 9 percent (5 percent, adjusting for currency) compared with the first quarter of 2006. Revenues from IBM's middleware products, which primarily include WebSphere, Information Management, Tivoli, Lotus and Rational products, were $3.2 billion, up 10 percent versus the first quarter of 2006. Operating systems revenues of $522 million were flat compared with the prior-year quarter. Revenues from other software and services increased, which includes the Product Lifecycle Management portfolio of products.