IBM Q2 Net Income Up 9 Percent To $3.4 Billion

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.

This year alone, Big Blue has acquired Big Fix, Coremetrics, Sterling Commerce, Cast Iron Systems, Initiate and Intelliden.