IBM delivers solid quarter, but strong dollar dings sales

Software and services boost Big Blue's second quarter, but a strong dollar was a $500 million hit to revenue.

IBM on Tuesday delivered strong second-quarter earnings, but revenue took a hit due to a strong dollar. Software and services led the way.

IBM reported second-quarter earnings of $3.4 billion, or $2.61 a share, on revenue of $23.7 billion. Wall Street was expecting earnings of $2.58 a share on revenue of $24.17 billion. IBM said a strong dollar was a $500 million hit to revenue. Most analysts didn't account for currency fluctuations. A strong dollar relative to international currencies dings sales when international revenue is tallied in the U.S.

CEO Sam Palmisano said that the company expects 2010 earnings of at least $11.25 a share, in line with current expectations.

Read more of "IBM delivers solid second quarter, but strong U.S. dollar dings sales" at ZDNet.

About the author

    Larry Dignan is editor in chief of ZDNet and editorial director of CNET's TechRepublic. He has covered the technology and financial-services industries since 1995.

     

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