IBM posts upbeat second-quarter results

IBM has reported a strong second quarter

IBM posted better-than-expected quarterly results on Thursday, citing the success of its ongoing reorganisation plan.

The company said that it will raise its yearly expectations after posting an 18 per cent increase in earnings. The figures also topped analyst expectations for the quarter.

IBM posted net income of $3.1bn (£1.9) in the period, up from $2.8bn (£1.7bn) last year, despite a drop in revenue of 13 per cent from 2008.

Chief executive Samuel Palmisano credited the company's upbeat financial figures with an ongoing reorganisation plan that has seen IBM cut thousands of jobs and shift its focus towards software and IT services.

"As a result of our strategic transformation, we have a very strong business model that is delivering superior earnings, cash and client value," said Palmisano.

"We are optimistic about how IBM is positioned to make the most of current growth opportunities as well as those that emerge as the economy recovers."

IBM's upbeat report comes a day after Intel also beat expectations with its quarterly performance, leading some to speculate that the worst of the economic crisis may have passed.