Despite a year-on-year decrease in revenue of 13% to $23,3-billion in its second quarter results, IBM's net earnings increased 12% to $3,1-billion – and it is sure to cheer Wall Street by raising its full-year EPS expectations from $9.20 to $9.70.
The company's chairman, president and CEO, Sam Palmisano, was distinctly upbeat about the latest results.
"As a result of our strategic transformation, we have a very strong business model that is delivering superior earnings, cash and client value,” Palmisano says. "We have continued our strategic investments in Smarter Planet solutions, business analytics and next generation data centres. As a result, we are optimistic about how IBM is positioned to make the most of current growth opportunities as well as those that emerge as the economy recovers. We are well ahead of pace for our 2010 roadmap of $10 to $11 per share."
From a geographic perspective, the Americas’ second-quarter revenues were $9,9-billion, a decrease of 9% from the 2008 period. Revenues from EMEA were $7,9-billion, down 20%, and revenues from the Asia/Pacific region decreased 7% to $4,9-billion.