IBM Says Tech Spending Looks Better

by Marilou Long on April 20, 2010

in Earnings,Economic Indicators

In this ft.com article, IBM said that tech spending was beginning to spread beyond the consumer to large corporate buyers.  Their business consulting division saw its strongest growth in three years with an 18% increase in new contract signings.  Intel also indicated last week that this was the case. 

“In an uncharacteristic demonstration of confidence that the downturn is over, Sam Palmisano, chief executive officer, raised his forecast for IBM’s earnings per share this year to $11.20, from an estimate given in January of “at least $11”.

The company also predicted that for the second quarter of this year all its main divisions would return to revenue growth, after taking currency movements into account. The moves are unusual for IBM, which does not normally raise guidance early in the year.”

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