IBM reports that total revenues for the second quarter of 2011 were $26,7-billion, and increase of 12% (5% adjusting for currency) from the second quarter of 2010.

The company also announced second-quarter 2011 diluted earnings of $3.00 per share, compared with diluted earnings of $2.61 per share in the second quarter of 2010, an increase of 15%. Operating (non-GAAP) diluted earnings were $3.09 per share, compared with operating diluted earnings of $2.62 per share in the second quarter of 2010, an increase of 18%.
Second-quarter net income was $3,7-billion compared with $3,4-billion in the second quarter of 2010, an increase of 8%. Operating (non-GAAP) net income was $3,8-billion compared with $3,4-billion in the second quarter of 2010, an increase of 11%.
"In the second quarter our long-term strategic investments in the company's growth initiatives again helped drive strong revenue performance," says Samuel Palmisano, IBM chairman, president and CEO. "Hardware, software and services revenue grew at double digits, and we achieved strong profit and free cash flow growth.
"As IBM begins its second century, we continue a process of transformation, positioning the company to lead in the future and deliver higher value to our clients and our shareholders. Given our strong start to 2011, we are raising our full-year operating earnings per share expectations to at least $13.25."
The Americas’ second-quarter revenues were $11,2-billion, an increase of 10% (8% adjusting for currency) from the 2010 period. Revenues from Europe/Middle East/Africa were $8,6-billion, up 16% (3% adjusting for currency). Asia-Pacific revenues increased 14% (3% adjusting for currency) to $6,2-billion. OEM revenues were $674-million, flat (down 1% adjusting for currency) compared with the 2010 second quarter.
Revenues from the company’s growth markets increased 23% (13% adjusting for currency). Revenues in the BRIC countries – Brazil, Russia, India and China – increased 27% (21% adjusting for currency). Growth markets revenue represents 22% of IBM’s total geographic revenue for the second quarter.
Total Global Services revenues increased 10% (2% adjusting for currency). Global Technology Services segment revenues increased 11% (3% adjusting for currency) to $10,2-billion. Global Business Services segment revenues were up 9% (1% adjusting for currency) at $4,9-billion.
Global Services pre-tax income increased to $2,2-billion, up 4% year over year. Pre-tax income from Global Technology Services increased 1%; pre-tax income growth was reduced by 7 points as a result of increased workforce rebalancing expenses. Global Business Services pre-tax income increased 11%.
The estimated services backlog at June 30 was $144-billion, up $15-billion year over year at actual rates ($2-billion, adjusting for currency). Services backlog at the end of a quarter measures the current value of work under contract expected to be recognised as revenue in future quarters.
Revenues from the Software segment were $6,2-billion, an increase of 17% (10% adjusting for currency). Software pre-tax income of $2,3-billion was up 12% year over year.
Revenues from IBM’s key middleware products, which include WebSphere, Information Management, Tivoli, Lotus and Rational products, were $3,9-billion, an increase of 21% (14%, adjusting for currency) versus the second quarter of 2010. Operating systems revenues of $630-million increased 16% (9% adjusting for currency) compared with the prior-year quarter.
Revenues from the WebSphere family of software products increased 55% year over year. Information Management software revenues increased 18%. Revenues from Tivoli software increased 9%. Revenues from Lotus software increased 12% and Rational software increased 4%.
Revenues from the Systems and Technology segment totaled $4,7-billion for the quarter, up 17% (12% adjusting for currency) from the second quarter of 2010. Systems and Technology pre-tax income was $393-million, an increase of 112% year over year.
Systems revenues increased 20% (13% adjusting for currency). Revenues from System z mainframe server products increased 61% compared with the year-ago period. Total delivery of System z computing power, as measured in MIPS (millions of instructions per second), increased 86%. Revenues from Power Systems increased 12% compared with the 2010 period. Revenues from System x increased 15%. Revenues from System Storage increased 10% and revenues from Retail Store Solutions increased 8% year over year. Revenues from Microelectronics OEM increased 4%.
Global Financing segment revenues decreased 5% (11% adjusting for currency) in the second quarter to $519-million. Pre-tax income for the segment increased 7% to $496-million.
The company’s total gross profit margin was 46,4% in the 2011 second quarter compared with 45,6% in the 2010 second-quarter period.