IBM Q1 Profit Jumps 16 Percent

IBM on Monday reported first-quarter earnings of US$1.97 per share on $22.9 billion in revenue, a rise of 16 percent and 5 percent, respectively, over the same period last year.

Net income was $2.6 billion, a jump of 13 percent.

The company also raised its full-year earnings guidance for fiscal 2010 to at least $11.20 per share.

Software license sales, a key sign of business health, grew 11 percent to $5 billion in the first quarter.

In an indication more customers are embarking on large-scale projects as the global recession eases, IBM also said it had signed 13 services contracts greater than $100 million in value. Total services revenues rose 4 percent to $9.3 billion.

But Big Blue's hardware business had mixed results. Revenue for the Systems and Technology division was up 5 percent to $3.4 billion, helped by a 36 percent jump in System x sales. But System z and POWER system revenues both fell 17 percent.

(More to follow).

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