IBM's revenue increased 10 per cent year-over-year in its most recent quarter, the company has announced in a report that spotlighted growth in the company's services and software units but showed continuing softness in several of its hardware divisions.
IBM posted net income of $US1.7 billion, for its second fiscal quarter, ended June 30. Big Blue reported revenue of $US21.6 billion, topping the $US21.4 billion forecast by analysts.
IBM's Global Services group accounted for nearly half of the company's revenue for the quarter, bringing in $US10.6 billion, a 23 per cent increase over 2002's $US8.7 billion second-quarter total. The addition of PwC Consulting, bought by IBM late last year, helped drive the growth, IBM said.
Revenue from IBM's software unit rose to $US3.5 billion, up 6 per cent from last year's $US3.3 billion. Revenue from IBM's WebSphere middleware line grew 14 per cent, and its DB2 database revenue increased 16 per cent. Revenue from IBM's Lotus information management and collaboration software unit declined 3 per cent year-over-year.
IBM's total hardware revenue declined 1 per cent, to $US6.6 billion, although some areas showed gains: IBM's Systems Group revenue from servers and storage systems increased 10 per cent. The company's Personal Systems group revenue dropped 3 per cent as PC sales continued their down trend.