IBM growth signals IT sector recovery
Computing giant IBM has signalled the end of a three-year slump in IT spending after producing strong revenue and earnings figures for the final quarter of its financial year.
The company’s fourth quarter results showed a 9% climb in revenues to $25.9bn compared with a year age while earnings per share jumped 16% after adjusting for last year’s charges relating to the acquisition of PwC Consulting.
‘I would characterise 2004 as a year when the IT industry will begin its next growth cycle,’ said IBM chief financial officer, John Joyce in the Financial Times. ‘In a recovering economy, customers’ first step is to update their technology infrastructure.’