IBM has posted healthy gains for the fourth quarter as well as the full 2006 financial year. 

Samuel Palmisano, IBM chairman, president and chief executive officer, comments: "IBM had a terrific quarter and a good year with record cash performance, profit and EPS, as well as record payouts to shareholders. We are well-positioned in the growth areas of a changing IT industry, focused on our evolving business model, and poised for long-term success for our clients and shareholders."
Fourth-quarter income from continuing operations was $3,5-billion compared with $3,2-billion in the fourth quarter of 2005, an increase of 8%.
Revenues from the software segment were $5,6-billion for the quarter, an increase of 14% compared to last year. Revenues from IBM's middleware brands, which include WebSphere, Information Management, Tivoli, Lotus and Rational products, were $4,4-billion, up 18% from the fourth quarter of 2005. Operating systems revenues decreased 2% to $642-million, while revenues from other software and services increased.
For the Global Services business, segment revenues from Global Technology Services increased 7% to $8,6-billion, and segment revenues from Global Business Services increased 6% to $4,2-billion.
IBM signed services contracts totaling $17,8-billion, up 55% year over year, and ended the full year with an estimated services backlog, including Strategic Outsourcing, Business Transformation Outsourcing, Global Business Services, Integrated Technology Services and Maintenance, of $116-billion, an increase of $5-billion from the prior-year period.
Revenues from the Systems and Technology Group (S&TG) segment totaled $7,1-billion for the quarter, up 3%. S&TG revenues from System z server products increased 5% from a year ago. Total delivery of System z computing power, which is measured in MIPS (millions of instructions per second), increased 6%. Revenues from the System p Unix server products increased 4% compared with the 2005 period. Revenues from the System x servers increased 7%, and revenues from the System i servers decreased 10%. Revenues from Microelectronics decreased 6% and revenues from System Storage increased 9%.
Global Financing segment revenues increased 3% in the fourth quarter to $620-million.
The company's total gross profit margin was 44,6% in the 2006 fourth quarter compared with 44,1% in the 2005 period.
For total operations, net income for the fourth-quarter 2006 was $3,5-billion.
For the full 2006 financial year, total revenue was $91,4-billion, up 4% excluding the divested PC business. Income from continuing operations totaled $9,4-billion, up 18%.
Software segment revenues in 2006 totaled $18,2-billion, an increase of 8%. Revenues from the Global Technology Services segment totaled $32,3-billion, an increase of 3% compared with 2005. Revenues from the Global Business Services segment were $16-billion, the same as last year. S&TG segment revenues were $22-billion, an increase of 5% . Global Financing revenues totaled $2,4-billion, a decrease of 2%.
For total operations, net income for 2006 was $9,5-billion.
IBM ended 2006 with $10,7-billion of cash on hand and net cash provided from operations, excluding the year-to-year change in Global Financing receivables, was $15,3-billion – an increase of $2,2-billion from last year.