IBM revenues hit $28.9bn in the fourth quarter of 2007, showing a 10 per cent increase compared to the same period a year ago.

Big Blue increased its full 2007 revenue by eight per cent to $98.9bn, with operating income of $10.4bn.

The company posted an operating income of $4bn for the quarter, up $500,000 from the same period in 2006, with a 14 per cent increase in diluted earnings.

However, total gross profit margin increased only slightly, up to 44.9 per cent in the 2007 fourth quarter compared with 44.6 per cent in the 2006 period.

Revenues were helped by strong performances from the Global Technology Services sector, which saw a rise of 16 per cent and a pre-tax income up 26 per cent.

There were also gains in the Global Business Services sector, as new signings and software revenues performed strongly.

The US market accounted for around a third of all IBM's revenues, with 65 per cent coming from other regions. Revenues for EMEA rose 16 per cent, followed by Asia Pacific at 15 per cent.

Sam Palmisano, IBM chairman, president and chief executive, claimed that the company is on track to achieve its long-term earnings objectives for 2010.

"IBM had a terrific fourth quarter and full year with record revenue, profit and cash," he said.

"The broad scope of our global business, led by strong operational performance in Asia, Europe and emerging countries, as well as continued growth in services and software, drove these outstanding results."