Mainframe sales spur IBM to strong quarter

Summary:The company has announced third-quarter income of $3.6bn, driven in part by strong sales of System z mainframes

IBM improved its earnings outlook for 2010 after delivering a strong third quarter. The company showed strength in businesses ranging from services to mainframes and analytics.

The company reported in a statement net income of $3.6bn (£2.3bn), or $2.82 a share, on revenue of $24.3bn, which was up 3 percent from a year ago. Wall Street analysts were expecting earnings of $2.75 a share on revenue of $24.13bn.

Hardware revenue was $4.3bn, up 10 percent from the third quarter a year ago. Revenue was propelled by IBM's System z mainframes. Software revenue was $5.2bn, up 1 percent from a year ago. Revenue from middleware saw a 7 percent increase on this time last year.

For more on this ZDNet UK-selected story, see IBM ups 2010 outlook; New mainframes spur hardware sales on ZDNet.com.

Topics: Tech Industry

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Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CN... Full Bio

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