IBM has posted its Q2 2010 earnings, and they’re alright – but investors are cheesed off anyway. It reported diluted earnings of $2.61 per share compared with $2.32 the same time last year, and net income of $3.4 billion, up from $3.4 billion in Q2 2009.
Its overall Q2 revenue is up, IBM says, two percent from the same period last year to $23.7 billion. IBM reckons iffy currency since the Q1 earnings report is to blame for some of the dosh that it is missing, claiming it has lost $500 million in revenue through the “impact of changes in currency rates”.
The big issue for investors is IBM’s hefty services contracts, which decreased 12 percent from Q1 2010. The signed services contracts totaled $12.3 billion. All markets except for the EMEA region were up. The Americas’ Q2 revenues clocked in at $10.2 billion, up three percent year-on-year. Asia-Pacific revenues increased nine percent to $5.4 billion and OEM revenues were up 26 percent year-on-year to $677 million. EMEA results were $7.4 billion, down six percent year-over-year.
While IBM has generally increased its revenue, 2009 was a dire period for all involved. Profits exceeded expectations – forecasted share price was $2.58 rather than the $2.61 that came out – but it’s not a huge leap, and some analysts are warning that IBM may not be out of its relative rut just yet. Software’s been the main key in keeping everything ticking in the black, but it’s going to need to win some more large contracts if investors are going to be happy.