IBM Scores with Software in Second Quarter
The company reports strong software revenue, but says its results in hardware and services lag.Led by strong software sales, particularly in Tivoli and WebSphere products, IBM posted solid second-quarter results that met earnings targets. Earnings were $1.30 per share, compared with $1.14 per share in the year-earlier second quarter, an increase of 14 percent. Second-quarter profit was $2 billion, compared with $1.9 billion in the second quarter of 2005, an increase of 9 percent. Without non-recurring items of 2005, the gain was 11 percent. Total revenues for the quarter were $21.9 billion. Services and hardware continued to be question marks, however.
"Hardware and services didnt perform to our expectations," said IBM Chief Financial Officer Mark Loughridge in the companys quarterly earnings call.