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IBM Q1 net up 7% at $3.1 bn

Technology giant IBM on Wednesday posted 7 per cent growth in net income to $3.1 billion in three month to March, 2012 helped by higher revenues from the BRIC countries coupled with strong performance of software and services segments.

The entity had a net income of $ 2.9 billion in the January-March quarter of 2011, IBM said in a statement.
IBM’s first quarterly earnings were mainly driven by double-digit revenue growth in BRIC countries - Brazil, Russia, India and China- and robust revenue contributions from software and services segments.

Revenues for the first quarter ended March 31, 2012, were flat at $24.7 billion from the year-ago period.
‘In the first quarter, we drove strong profit and earnings per share growth. We delivered another excellent software performance, expanded services margins, and continued the momentum in our growth initiatives,’ IBM president and CEO Ginni Rometty said.

‘Our investments in growth market countries continued to generate strong revenue growth across software, hardware and services while contributing to the company’s ongoing margin expansion,’ Rometty added.

The company said that based on this performance, it is raising full-year operating earnings per share expectations to at least $15.

In terms of geographical analysis, revenues from the BRIC countries surged 10 per cent during the quarter under review. In addition, revenues from Asia-Pacific operations rose by 4 per cent to $6.1 billion and Americas’ revenues were $10.5 billion, an increase of 1 per cent from the 2011 period.
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