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IBM Posts Positive Q2 Results, Net Income Up by 8%

IT giant International Business Machines has reported an 8.28 percent ($3.66 billion) rise in its net income for the second quarter of 2011.

The company, which credited the superb Q2 performance to rise in software, hardware and services sale, reported revenue of $26.7 billion in the second quarter, an increase of 12 percent over the same period last year.

IBM’s revenue from its massive services division was at $15.1 billion, an increase of 10 percent while the revenue from software division rose 17 percent to $6.2 billion. Meanwhile, the Big Blue’s hardware division rose by 17 percent to $4.7 billion.

"In the second quarter, our long-term strategic investments in the company's growth initiatives again helped drive strong revenue performance," IBM Chairman President and CEO Samuel J Palmisano said.

"Hardware, software and services revenue grew at double digits and we achieved strong profit and free cash flow growth," he added.

IBM, which celebrated its 100th birthday a while back, reported revenue increases across all markets. Revenue from Brazil, Russia, India and China rose by 27 percent, while the revenue from Americas increased by 10 percent.

The company increased its EPS expectations for the full year from $3.15 per share to $13.25 per share.