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Services drive IBM growth.

Ginni Rometty

Armonk: IBM has reported solid results for the year to December 31 2011, on the back of strong service business performance, despite modest fourth-quarter growth.

Fourth quarter net income was up 4 percent to $5.5 billion on revenues up percent to $29.5 billion.

Full year net income rose 7 percent to $15.9 billion on revenues up 7 percent to $106.9 billion.

"We had a strong fourth-quarter performance, capping a year of record earnings per share, revenue, profit and free cash flow," said Ginni Rometty, IBM president and chief executive officer. "We delivered outstanding results in all four of our strategic initiatives for the quarter and the year, as we continued to realize the benefit of our long-term investments in growth markets, business analytics, Smarter Planet solutions and cloud. We are well on track toward our long-term roadmap for operating earnings per share of at least $20 in 2015."

Fourth quarter by Geography and Sector

The Americas' fourth-quarter revenues were $12.5 billion, an increase of 3 percent (3 percent, adjusting for currency) from the 2010 period. Revenues from Europe/Middle East/Africa were $9.6 billion, up 1 percent (1 percent, adjusting for currency). Asia-Pacific revenues increased 2 percent (down 1 percent, adjusting for currency) to $6.7 billion.

Revenues from the company's growth markets increased 7 percent (8 percent, adjusting for currency). Revenues in the BRIC countries -- Brazil, Russia, India and China -- increased 10 percent (11 percent, adjusting for currency).

Global Technology Services segment revenues increased 3 percent (3 percent, adjusting for currency) to $10.5 billion. Global Business Services segment revenues were up 3 percent (2 percent, adjusting for currency) at $4.9 billion.

Pre-tax income from Global Technology Services increased 18 percent; pre-tax margin increased to 18.0 percent. Global Business Services pre-tax income increased 14 percent; pre-tax margin increased to 16.6 percent.

Full year by Geography and Sector

From a geographic perspective, the Americas' full-year revenues were $44.9 billion, an increase of 7 percent (6 percent, adjusting for currency) from the 2010 period. Revenues from Europe/Middle East/Africa were $34.0 billion, an increase of 7 percent (2 percent, adjusting for currency). Asia-Pacific revenues increased 9 percent (2 percent, adjusting for currency) to $25.3 billion.

Revenues from the company's growth markets increased 16 percent (11 percent, adjusting for currency), and represents 22 percent of IBM's total geographic revenue. Revenues in the BRIC countries -- Brazil, Russia, India and China -- increased 19 percent (16 percent, adjusting for currency).

Total Global Services revenues increased 7 percent (2 percent, adjusting for currency). Revenues from the Global Technology Services segment totaled $40.9 billion, an increase of 7 percent (3 percent, adjusting for currency) compared with 2010. Revenues from the Global Business Services segment were $19.3 billion, up 6 percent (1 percent, adjusting for currency). Software segment revenues in 2011 totaled $24.9 billion, an increase of 11 percent (8 percent, adjusting for currency). Systems and Technology segment revenues were $19.0 billion, an increase of 6 percent (3 percent, adjusting for currency).

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