Big Blue still is no organic growth story. Revenue for the quarter was $25.8 billion, down 3% from a year ago, up 1% adjusted for currency, and below the Street consensus at $26.28 billion. But non-GAAP profits were impressive, at $3.52 a share, up 14% from a year ago, and ahead of the Street at $3.42. GAAP profits rose 11% to $3.34 a share.
Other key metrics:
- Gross margin was 47.6% on a GAAP basis, or 48.2% non-GAAP.
- Free cash flow was $3.7 billion, up 9%.
- Software revenue was flat, or up 4% adjusting for currency.
- Services revenue was down 3%, or up 1% adjusting for currency.
- Services backlog was down 6%, or flat adjusting for currency.
- Systems and technology revenue was down 9%, or down 7% adjusting for currency.
- Americas region revenue was down 1%, or up 1% adjusted for currency.
- EMEA was down 9%, or flat adjusted for currency.
- Asia-Pacific was up 2%, or up 4% adjusted for currency.
The company lifted its outlook for full year 2012 non-GAAP profits to at least $15.10 a share, from at least $15. On a GAAP basis, the company now sees profits of at least $14.40 a share, up from a previous forecast of at least $14.27.
“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,” IBM CEO Ginni Rometty said in a statement. “These are fundamental elements of our long-term business model."
IBM in late trading is up $3.87, or 2.1%, to $192.12.
