IBM Q2 Profit Up on Steady Hardware, Software Gains
IBM continued its course of growth, with hardware and software gains pushing revenue up 12 percent and net income up 8 percent for the second quarter of 2011.
IBM reported revenues of 26.7 billion for the quarter, along with net income of $3.7 billion compared with $3.4 billion for the second quarter of 2010. Revenues for both IBM Software and IBM's Systems and Technology Group (STG) were up 17 percent. And the company continues to invest heavily in a growth markets strategy that is paying off for the systems giant.
During a call with financial analysts discussing the company's Q2 earnings, Mark Loughridge, IBM's chief financial officer, said IBM's software growth was driven by key branded middleware, which was up 21 percent. IBM's systems revenue was up 20 percent, with strong performance in System z, Power, and System x servers. And Big Blue's total services backlog increased to $144 billion, up $15 billion over last year, Loughridge said.