New York, Oct 16: IBM, the world's largest computer company, on Wednesday reported higher third-quarter profits helped by software and services, but its top executive said the technology sector has not yet bounced back. The company, which sells everything from mainframes to microchips, backed analysts forecasts for the fourth quarter and said that it expects customers to spend more on technology in 2004. It said it would hire 10,000 people in areas like high-end services and software.

"Although it is too early to say that a rebound is at hand, we are confident that we will benefit from both a pickup in IT (information technology) spending and an economic recovery," IBM Chief Executive Sam Palmisano said.
IBM's report comes as other technology companies such as Intel Corp. and Motorola Inc. have reported stronger-than-expected quarters and could temper optimism about the long-awaited rebound, analysts said. Bureau Report