IBM posts strong growth as other tech firms stall
Wednesday, 18 October 2006, 19:30 IST
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San Francisco: Tech giant IBM posted strong earnings growth as its third-quarter profit rose 46 percent, amid sales growth across all its major business lines. But there was no good news for other tech heavyweights Tuesday, as Yahoo reported slower-than-expected revenue growth, Intel said profits were down 35 percent, and Motorola profits sank amid disappointing sales of its mobile phones. IBM's net income rose to $2.22 billion, from $1.52 billion a year earlier as revenues grew more than 5 percent to $22.62 billion, buoyed by growth around the globe in its global services and business hardware and software. Yahoo posted a nearly 40 percent drop in its third-quarter profit and lowered its sales projections for the fourth quarter. Yahoo's net income in the third quarter dropped to $158.5 million, down from $253.8 million a year earlier. Revenue rose 19 percent to $1.58 billion from $1.33 billion a year earlier. Intel also posted sharply lower figures. The world's largest chip-maker said it had a net profit of $1.3 billion compared to $2 billion a year earlier. Third-quarter revenue was $8.7 billion, down nearly 13 percent from $9.96 billion a year earlier and just ahead of expectations of $8.61 billion. Motorola, the world's second-largest mobile phone maker, said that third-quarter revenue rose 17 percent to $10.6 billion, missing analyst estimates of $11.06 billion in sales. The company said the shortfall came from reduced customer spending in Europe, Middle East and Africa as well as slower-than-expected phone sales in Europe and the US. The company's net profit fell to $968 million from $1.75 billion in the year-ago quarter.
Source: IANS
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