IBM not fazed by weak US dollar

According to the vendor’s Q1Y08 results, 65 percent of its US$24.5 billion revenue came from outside the US. The higher value of foreign currencies coupled with expansion overseas translated into strong earnings for the hardware vendor.

IBM announced overall quarterly revenue from continuing operations as US$2.3 billion or US$1.65 per diluted share; compared to US$1.8 billion or US$1.21 per share in the first quarter of 2007.

“These results reinforce our confidence in IBM’s ability to perform well in a dynamic global economy,” said Samuel J. Palmisano, chairman, president and chief executive officer of IBM. “Our performance is a tribute to the way we have repositioned our company over the past several years, as well as the hard work of IBMers across the globe.”

IBM revenues in APAC rose by 14 percent, which Palmisano attributes to a stronger global focus by the vendor. Other regions that experienced sizeable growth include the EMEA [up by 16 percent] and the US [up by 6 percent].

“IBM is a different company today, with a number of unique advantages – our global reach and scale, our strength in profitable growth segments, strong recurring revenue and profit streams, products and services that create real value for clients, and the discipline and financial strength and flexibility that enables us to adjust our business model as conditions require,” he said.

“We feel good about the rest of the year.”