IBM’s quarterly profit exceeded estimates, and consequently shares rose 2.8 percent in extended trading. The company reported its fourth-quarter net income rose 9 percent to $5.3 billion, aligned with $29 billion in Q4 revenue. Its $4.18 per share earnings exceeded estimates averaging $4.08, as well as its 2009 Q4 earnings of $3.59 per share.

“I.B.M., which has been shifting its focus from commoditized hardware to higher-margin services and software over the last decade, said it signed services contracts worth $22.1 billion during the quarter, up 18 percent.”

In addition to an optimistic quantity (and size) of contracts signed, $142 billion worth of backlog in the services business was noticed, up from about $137 billion a year earlier. Overall, IBM’s gross profit margin rose to 49 percent from 48.3 percent a year earlier, and the company forecasts 2011 earnings of at least $12.56 a share compared to $11.52 in 2010.

IBM had seen an increase in profits, but that doesn’t mean its lessening its growth and partnership efforts.  IBM and ARM expanded their partnership to include the 14-nanometer mobile processor manufacturing process.

IBM had its far share of interesting developments lately, and SiliconANGLE gave its take on the news. That includes the announcement IBM’s Watson super-computer will be challenging Jeopardy champions Ken Jennings and Brad Rutter, the company’s introduction of the revolutionary “racetrack memory” technology and IBM’s annual “Next Five in Five” list of predictions.