IBM reports 6% increase in net income at $3.9 bn

NEW YORK: Technology giant IBM has reported nearly 6 per cent increase in net income at $3.9 billion during the three months ended June 30, 2012 on the back of by good performance in India, China and other growth markets. However, the company has witnessed a slump in revenues.

In the corresponding period last year, the company had $3.66-billion net income.

The revenues in the latest June quarter slipped more than 3 per cent to $25.78 billion. The same was at $26.66 billion in the same period a year ago.

The company recorded a 2 per cent increase (up 8 per cent, adjusting for currency) from its growth markets and had double-digit revenue growth in over 30 countries.

The revenues from BRIC countries — Brazil, Russia, India and China — rose by 5 per cent (up 12 per cent, adjusting for currency).

IBM President and CEO, Ginni Rometty, said, “In the second quarter, we delivered strong profit, earnings per share and free cash flow growth. This performance reflects continued strength in our growth initiatives and investments in higher value opportunities.”