For the three months ending June 30, IBM's revenue increased 7% to $23.2 billion compared with a year earlier while net income rose 15% to $2 billion. For the period, the company posted per-share earnings of $1.16, an increase of 18%.
Revenue from the company's systems and technology group increased 10% to $4.2 billion as sales of mainframe computing power increased sharply. Total delivery of mainframe computing power as measured in MIPS (millions of instructions per second) increased 75% in the second quarter compared with a year earlier, IBM said. Sales of PCs and other personal computing devices increased 16% to $3.2 billion.
Revenue from IBM's Global Services unit increased 7% during the quarter to $11.3 billion. During the period, IBM signed new services contracts totaling more than $10 billion. Among others, IBM announced services contracts during the quarter with Aetna, Marathon Oil, and Qantas Airways.
IBM's software group didn't fare as well. Second-quarter sales totaled $3.5 billion, essentially flat with a year ago. Within that, operating-system revenue fell 2%.
Most of IBM's sales growth in the second quarter came outside of the United States, with Asia/Pacific leading the way with a 13% increase. Sales increased 9% in the region comprising Europe, the Middle East and Africa. Sales in the Americas rose 2%.
