IBM posts solid first quarter

IBM's first-quarter earnings and sales were better than expected as the company's software unit posted double-digit revenue growth. The company also raised its earnings outlook for 2010.

Big Blue reported first-quarter earnings of US$2.6 billion, or US$1.97 a share, on revenue of US$22.9 billion, up 5 percent from a year ago. Wall Street was looking for US$1.93 a share on revenue of US$22.7 billion, according to Thomson Reuters.

IBM said it was confident that it could grow revenue. The company also projected 2010 earnings of US$11.20 a share. Wall Street was looking for US$11.12 a share for 2010. IBM added that it expects revenue growth for its hardware, software and services businesses in the second quarter.

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