IBM profits climb 47% on strong software sales

IBM, the world's largest technology services company, has reported a 47 per cent rise in quarterly profit after boosting software…

IBM, the world's largest technology services company, has reported a 47 per cent rise in quarterly profit after boosting software sales through acquisitions, sending its shares higher in after hours trading.

Net income in the third quarter rose to $2.22 billion, or $1.45 per share, from $1.52 billion, or 94 cents per share, a year earlier, when IBM had a $525 million tax charge for repatriating overseas earnings.

Revenue climbed to $22.6 billion from $21.5 billion.

Profit exceeded Wall Street analysts' predictions of net income of $1.35 per share and revenue of $22.1 billion.

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IBM shares rose 3.4 per cent in extended trading following the earnings report from a close of $86.95 on the New York Stock Exchange.