IBM revenue up 5%

Company reports Q1 revenue of $22.9bn.

For the first quarter of 2010, net income increased 13 per cent to $2.6bn, compared to $2.3bn for the same period a year ago. The diluted earnings increased 16 per cent to $1.97 per share from $1.70 per share.

Geographically, the America's revenue which is the IBM's biggest market increased 2 per cent to $9.5bn and the revenue from the Europe/Middle East/Africa increased 5 per cent to $7.6bn, while Asia-Pacific revenues increased 10 per cent to $5.3bn. Total global services revenue increased 4 per cent, global technology services segment revenue increased 6 per cent to $9.3bn, while global business services segment revenue was flat at $4.4bn compared to same period a year ago.

The revenue from the software segment rose 11 per cent to $5bn and revenue from IBM's key middleware products, which include WebSphere, information management, Tivoli, Lotus and rational products were $2.8bn, an increase of 13 per cent compared to same period last year. The systems and technology segment revenue increased 5 per cent to $3.4bn compared to same period last year. IBM also signed services contracts totalling $12.3bn, including 13 contracts greater than $100m.

"In the first quarter, we drove significantly improved revenue growth rates from the fourth quarter across our businesses and geographies," said Samuel Palmisano, chairman, president and chief executive officer of IBM. "Looking ahead, we are confident in our ability to grow revenue, and given our mix of higher-value business and productivity we will expand margins, grow profit, cash and EPS, and increase returns to shareholders. Thus, we expect full-year 2010 diluted earnings per share of at least $11.20."