IBM Optimistic Despite Weak Economy

Software and hardware company IBM expressed optimism despite weak economy and said its earning is expected to remain strong in 2010 as its software products and wide range of services will prevent weak sales amid financial crisis.


According to Reuters report, IBM chief executive Sam Palmisano said the company is targeting profit that will range from $10 to $11 per share next year which is nearly $1 more than analysts have predicted.

As one of the remaining technology company that dates back to 9th century, IBM continuously evolved itself to cater the ever-changing needs of consumers. Citing this, Palmisano said the company can survive no matter what is the condition of the economy.

In a meeting with analysts, the official said IBM does not depend on a single service or product unlike other technology and IT companies.

Despite weak economy, Palmisano believes this time is the perfect period for making new investment and grabbing opportunities, citing merger with other companies as the best way to secure its finances.

Last month, IBM failed to acquire software maker Sun Microsystems Inc which was bought by another company.

In the first few months of 2009, IBM’s revenue declined by 11 percent compared to last year. But despite plummeting sales, the company’s finances remain afloat after adopting cost-cutting measures and other contingency plans.