IBM reported steady second quarter earnings today, with net income rising 9 percent compared to the second quarter of 2009, to $3.4 billion. Big Blue’s diluted earnings increased 13 percent to $2.61 per share compared with diluted earnings of $2.32 per share in the second quarter of 2009, beating the street estimate of $2.58 per share.
Total revenues for quarter came in at $23.7 billion, a 2 percent increase from the second quarter of 2009, but falling below analyst expectations of $24.2 billion The impact of changes in currency rates since IBM’s first-quarter earnings report in April reduced revenue by approximately $500 million in the second quarter.
Revenues from the Software segment were $5.3 billion, an increase of 2 percent. Revenues from IBM’s middleware products, which include WebSphere, Information Management, Tivoli, Lotus and Rational, were $3.3 billion, an increase of 9 percent versus the second quarter of 2009. Operating systems revenues of $544 million increased 3 percent compared with the prior-year quarter.
Revenues from Big Blue’s Business Analytics operations increased 14 percent, with revenues from the Systems and Technology segment totaling $4.0 billion for the quarter, up 3 percent. IBM ended the quarter with $12.2 billion of cash on hand. IBM finished Q1 of 2010 with $14 billion, but the company may have spent some of its cash over the past few months with its shopping spree.