IBM New Zealand has paid its parent company $20 million from distributable earnings after posting its biggest after-tax profit since 2005.
Last year it remitted $8 million to headquarters.
Profit from the 2011 financial year was $32.3 million compared with $20.2 million the previous fiscal year. It was based on revenue of $405 million, ($379 million). In 2005, it had revenue of $403 million and after-tax profit of $33.4 million. In the intervening years, it never posted an after-tax profit of much more than $20 million.
The company cut expenses by 13 percent year-on-year, to $53 million ($60.3 million).
IBM says in a statement that its services outperformed the market, with six percent annual growth in 2011 while the overall market grew at 3.5 percent during the period. Highlights, it says, included more than 160 new clients, particularly the NZ Customs Joint Border Management System, and multi-year services agreements at Westpac NZ and Air New Zealand.
Its $80 million datacentre in Auckland opened in May. IBM is understood to still be in negotiation with the government over joining the infrastructure-as-a-service providers. So far, Datacom and Revera have been named.