IBM results shine as Sun dims
Big Blue makes $3.1bn Q4 profit; rival fails to meet expectations
Two contradictory financial results were released last week, with IBM reporting strong fourth-quarter results and rival Sun failing to meet expectations.
Big Blue reported a net profit of $3.1bn for Q4, compared with $2.71bn for the same quarter a year ago. Turnover rose by seven per cent to $27.7bn, highlighting an 18 per cent sequential rise from $23.4bn in Q3 last year.
IBM's profits rose in all its five industry sectors, with turnover in global services and hardware increasing by 10 per cent to $12.6bn and by four per cent to $9.5bn respectively.
Sam Palmisano, chief executive of IBM, said: "IBM delivered a powerful Q4. The strategic actions IBM took last year have increased our focus on delivering high value to enterprises."
Meanwhile, Sun reported lower than expected sales for its Q2 2004, with a 1.6 per cent drop to $2.8bn. However, profit was up to $19m, compared with a loss of $125m in the same quarter a year ago.
Clive Longbottom, service director at Quocirca, said: "By comparing Sun with IBM we can see how big the difference is. IBM has strong brand recognition which helps generate sales, while everyone knows that Sun has had problems since the dot-com crash."