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IBM net profit rises by 9.1%

20 July 2010 12:06 (UTC +04:00)

Baku - APA-Economics. IBM’s (IBM) second-quarter profits were up 9 percent from a year earlier, the company announced on Monday, with increased sales in the U.S. and Asia helping to offset weaker spending in Europe.

Net profit for the quarter ended June 30 was US$3.4 billion, or $2.61 per share, up from $3.1 billion, or $2.32 per share, in the same quarter last year, IBM said. Revenue was $23.7 billion, up 2 percent year over year.

IBM also raised its earnings outlook for the year to at least $11.25 per share, up $.05 from its previous guidance.

Second-quarter software revenue was up 2 percent, or 6 percent when taking into account the recent divestiture of IBM’s project lifecycle management business, the company said.

However, IBM also signed 15 services pacts during the quarter worth more than $100 million, up from 13 in the previous quarter.

Revenue from IBM’s Systems & Technology segment, including its server hardware, increased by 3 percent. Sales of its industry-standard System x servers jumped 30 percent, but revenue from Power systems was down 10 percent, and System z mainframe sales fell 24 percent.

IBM is facing a fresh challenge in hardware from Oracle (ORCL), which entered the business via its acquisition of Sun Microsystems (JAVA).