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IBM earnings, sales rise in first quarter

The company has exceeded expectations of its first quarter earnings and has raised its earnings outlook for the year

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

The company reported first quarter earnings of $2.6bn (£1.7bn), or $1.97 a share, on revenue of $22.9bn, up five percent from a year ago. Wall Street was looking for $1.93 a share on revenue of $22.7bn, according to Thomson Reuters.

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

For more on this story, see IBM posts solid first quarter; Sees IT spending rebound across categories on ZDNet.com.