Key quotes from recent earnings conference calls from CEOs and CFOs about their companies and markets:
IBM CFO Mark Loughridge
This quarter, we had the best software revenue growth in over five years, with continued momentum in our strategic middleware, and additional benefit from our recent acquisitions. Our focus on building up our software capabilities is clearly paying off. The profile of our services business continued to improve. Revenue growth accelerated in the quarter, and we had exceptional signings performance, closing almost $18 billion of new business.
...Looking at our revenue by geography, as always, I’ll focus my comments on the results at constant currency, to provide the best view of the underlying business performance. The Americas revenue grew 5%. From a product perspective, the Americas’ growth was again driven by software. By region, the best performance came from Latin America, with double-digit revenue growth. The U.S. also grew, while Canada had a modest decline. Europe’s revenue was up 3% year-to-year, an improvement from the growth rate in the third quarter. Of the major countries, Italy had the best performance, and the U.K. also improved year-to-year.
Asia Pacific also delivered strong results with revenue up 5% in the quarter. The Asia Pacific economy remained strong, led by India and China. Our business in Japan returned to growth in the second half of the year. This is an important market for us, as Japan represents over half of the Asia Pacific revenue base – and is the second largest country globally in terms of revenue and profit.
The emerging countries of China, India, Brazil and Russia together grew 18%. India and Russia both posted growth of over 30%. China grew 18%, and Brazil grew 9%. For the year, these four countries contributed $4.5 billion of revenue, up 16% year-to-year without the divested PC business in last year’s results.
See the full IBM conference call transcript.
Satyam Founder and Chairman B. Ramalinga Raju
I am pleased to report that the company has achieved 7.7% sequential revenue growth in Q3 in US$ terms. This translates to 3.7% growth in rupee terms under consolidated Indian GAAP.
The growth differential is in view of this 3.7% rupee appreciation against the US dollar in Q3. The revenue growth was accentuated by a 11% offshore volume increase. This has resulted in increase of offshore contribution to revenue for the sixth consecutive quarter.
...Some time ago, there was rumors that Satyam was in dialogue with a large systems integrator for being acquired. We had vehemently denied having considered such an option directly or indirectly ever in the past. Subsequently, there was speculation on the part of some analysts about shareholder value on account of acquisition of the company. We would like to take this opportunity to put to rest any such speculation in the future. We firmly believe that enhancement in shareholder value is best when we continue to pursue the already successful global delivery model that we specialize in. Satyam, therefore, shall not indulge in any such pursuits of being acquired. We would continue to focus on aggressively expanding our business globally as an independent company.
See the full Satyam conference call transcript.