IBM profits, revenues rise in Q1

IBM Monday reported that profits from continuing operations rose 8 percent to $1.4 billion for the quarter that ended March 31, while revenues increased 11 percent to $20.1 billion, compared with the year-earlier quarter.

"In the face of an ongoing difficult environment, we delivered another strong quarter and continued to gain share across our strategic businesses," Chairman and CEO Samuel Palmisano said in a statement.

Hardware revenue declined 1 percent, while software revenue rose 8 percent, the company said. Revenue for middleware products, including WebSphere and DB2, rose 9 percent.

Profit margins dipped slightly, from 7.1 percent a year ago to 6.9 percent in the quarter just ended.

Earnings of 79 cents per share were slightly lower than analysts' consensus forecast of 80 cents per share, as compiled by Thomson Financial/First Call.