The VAR Guy

The titans of the tech industry are turning profits. Intel and IBM are off to a great 2011, with Q1 earnings bolstered by Intel’s chip proliferation and IBM’s systems strategies. Read on for the numbers…

Intel‘s GAAP Q1 revenues increased 25 percent to 12.8 billion, from $10.3 billion in the corresponding quarter last year. Its Q1 net income increased by 29 percent, or $718 million, to $3.2 billion. IBM, meanwhile, saw its GAAP Q1 revenues increase to $24.6 billion, up 8 percent (or 5 percent adjusting for currency) from Q1 last year. IBM’s Q1 net income increased to $2.9 billion, up 10 percent from Q1 of last year.

Both companies overwhelmingly exceeded Wall Street expectations, with Bloomberg reporting both companies’ biggest boost came from corporations that had been holding back but finally decided to invest in computer upgrades.

WallStreetCheetSheet.com said Intel “crushed” estimates, reflected by Intel’s stock price, which rose almost 7 percent following the earnings announcement. IBM, which Fool.com called an “underappreciated tech winner,” was seen as offering quality “beat and raise” results, with analysts raising their price targets.

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