Net profits rose 19.6 per cent in the third-quarter, compared with the same period last year, to US$2.8 billion (S$4.1 billion) while revenue rose five per cent to US$25.3 billion, IBM said in a statement.

IBM said diluted earnings per share were US$2.05, higher than the forecast US$2.03, and up 22 per cent from the US$1.68 per share in the third quarter of 2007.

The results were in line with preliminary figures IBM released last week.

'We remain confident in our full-year 2008 outlook,' IBM chairman Samuel Palmisano said.

'Our results demonstrate that the combination of a steady base of recurring revenue and profits, a range of products and services that deliver value to clients worldwide, and a strong and flexible financial foundation give IBM a competitive edge in good times and tough times,' he said.

'These strengths along with our strategy to manage for productivity in major markets and to invest for growth in emerging countries have enabled IBM to thrive despite an economic environment that no one could have predicted.'

By region, IBM said revenue in the Americas was up three per cent to US$10.5 billion and six per cent in Asia-Pacific to US$5.2 billion.

Revenue rose by 10 per cent in Europe, the Middle East and Africa to US$8.9 billion.

Revenue from other markets totalled US$673 million, down 24 per cent compared with the third-quarter of 2007.

IBM said revenue from global technology services was up eight per cent to US$9.9 billion while global business services revenue rose seven per cent to US$4.9 billion.

Software revenues were up 12 per cent to US$5.2 billion while IBM said it signed services contracts totalling US$12.7 billion, a decrease of four per cent.

IBM's share price rose 0.31 per cent in after-hours trading in New York to US$91.80 following the release of the results. -- AFP