Feeds

Hardware drives IBM in Q2

Weak dollar dance

  • alert
  • submit to reddit

Boost IT visibility and business value

It was business as usual for IBM in the second quarter, as the company posted modest gains and benefitted from a weak US dollar.

IBM's services, storage and server businesses helped offset an underachieving software business, resulting in total revenue of $23.2bn. This is a 7 percent rise - or just 4 percent in constant currency - over the $21.6bn posted in the same quarter a year ago. IBM's income rose as well, hitting $2.0bn in this year's Q2 versus $1.7bn last year.

"It was another strong quarter for large-scale systems, led by zSeries enterprise servers," said IBM's CEO Sam Palmisano. "IBM Global Services signed more than $10 billion in new business, and we are off to a strong start in the emerging Business Process Transformation Services opportunity. . . . IBM also grew significantly in emerging geographic markets in the first half, with 35 percent combined growth in China, Russia, India and Brazil."

IBM's Global Services unit reported $11.3bn in revenue - a 7 percent year-on-rise or 2 percent rise in constant currency.

Hardware revenue hit $7.4bn in the quarter - a 12 percent year-on-year rise or 10 percent rise in constant currency. As Palmisano stated, IBM's zSeries mainframe unit had a particularly strong run, while its Power-based iSeries and pSeries systems did not sell as well. IBM just rolled out its new Power5 processor and said iSeries and pSeries customers were likely waiting to upgrade to the new chip. IBM's storage and PC businesses also enjoyed a rise in revenue.

The same cannot be said for the software group. Software revenue came in flat at $3.5bn or down 4 percent in constant currency. This is hardly a surprise given recent revenue warnings from a number of major enterprise software sellers.

On a brighter note, IBM's much maligned microelectronics business managed to produce a profit of $111m. That's the first profit for this group since the end of 2002.

IBM's shares were flat during Thursday's trading and remained that way in the after-hours market, at the time of this report. ®

Related stories

History repeated as Apple slams CPU supplier
IBM grabs Alphablox
IBM ups rates on server financing deals
IBM gives Unix servers a Power5 injection
IBM offshores 500 UK jobs to India
Wall Street bears take a swipe at chip stocks
IBM denies spiking fab cancer study

Boost IT visibility and business value

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.