IBM Corp. has continued to fair well in a difficult economy, reporting US$2 billion in net income for the second quarter, citing strong services and hardware-related gains.
The net income, released Wednesday, is a 5 percent increase over the same period last year, IBM said. The figures translate into $1.15 earnings per share for the quarter, up 8 percent year-over-year, according to a company statement. The earnings per share matched a forecast from analysts polled by Thomson Financial/First Call.
Total revenue for the company in the period was $21.6 billion.
Conversely, profits have been down for other major technology vendors reporting financial results this week. Both EMC Corp. and Intel Corp. have struggled, saying that their customers are sharply reducing technology spending.
Despite its solid financial showing, IBM also has been affected. The company suffered weakness in its PC and disk-drive segments and expects the slowdown to continue throughout the year in those sectors and possibly others, according to the statement.
IBM, however, managed to post a 7 percent revenue gain in its services division compared to the same quarter last year, helping it to meet analyst expectations.
IBM also stood out from other technology vendors with its first-quarter results. The company also met analysts' expectations at the time, with strong performances from its services and mainframe businesses. Shares of IBM (IBM) dipped almost 5 percent on the day, closing at $104.28 on the New York Stock Exchange.