IBM second-quarter results powered by the cloud

The company's earnings for the second quarter were up 12 percent on a year ago, as IBM predicted its cloud computing revenue will double in 2011

IBM topped expectations for the second quarter of 2011 and raised its outlook for the rest of the year.

The company reported second-quarter earnings of $3.7bn (£2.3bn), or $3 a share, on revenue of $26.7bn, up 12 percent from a year ago. IBM was helped by a weak dollar; accounting for currency fluctuations, revenue would have been up five percent. Non-GAAP earnings were $3.09 a share. Wall Street analysts were looking for earnings of $3.03 a share on revenue of $25.34bn.

As expected IBM's software and hardware businesses carried the quarter. Growth markets such as analytics were strong and IBM predicted that its cloud computing revenue will double in 2011. In many respects, IBM's second quarter was about the mainframe upgrade cycle and solid software sales.

For more on this ZDNet UK-selected story, see IBM delivers strong Q2, ups 2011 outlook on ZDNet.com.


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