Bolstered by good performance in India, China and other growth markets, IBM has reported a nearly 6% increase in net income at $3.9 billion in the three months ended June 2012, even as its revenues slumped.
In the year-ago period, technology major had $3.66 billion net income.
The company's revenue in the latest June quarter dropped over 3% to $25.78 billion. The same was at $26.66 billion in the same period a year ago.
The company recorded a 2% increase (up 8%, adjusting for currency) from its growth markets and had double-digit revenue growth in more than 30 countries. Revenues from BRIC countries -- Brazil, Russia, India and China -- increased 5% (up 12%, adjusting for currency), it said in a statement yesterday.
IBM President and CEO Ginni Rometty attributed the strong performance to the company's long-term business model.
"In the second quarter, we delivered strong profit, earnings per share and free cash flow growth. This performance reflects continued strength in our growth initiatives and investments in higher value opportunities," Rometty said.
Quarterly revenues slipped in most of the regions including the US and Europe. Revenues from Europe, Middle East, Africa declined 9% to $7.9 billion, while that from the Asia-Pacific climbed 2% to $6.3 billion.
In terms of segments, revenues from Global Technology Services fell 2.4% to $9.9 billion while that from Global Business Services went down 4% to $4.7 billion.
Systems and Technology segment, too, saw sluggish performance as its revenues tumbled nine% to $4.3 billion. However, revenues from software remained flat at $6.2 billion.
Meanwhile, the company's net income for six months ended June increased by over 6% to $6.9 billion.
Buoyed by positive performance in the 2012 first half, IBM is optimistic about its prospects in the coming months.
"Given our performance in the first half and our outlook for the second half, we are raising our full-year operating earnings per share expectations to at least $15.10," Rometty said.
The earnings per share projection has been raised from earlier estimate of $15.