IBM (NYSE:IBM) reported a 3 percent decline in second-quarter revenue as hardware and service revenue fell and software sales were flat.
But, IBM executives pointed to solid growth in net income, up 6 percent, gross profit margins, up 1.2 points to 47.6 percent, and free cash, up 9 percent to $3.7 billion, during the quarter as evidence the company is on track.
"We run this business for profit and cash contribution," said CFO Mark Loughridge during a conference call with analysts. "I think the results demonstrate the strength and resiliency of IBM's business model, delivering profit and cash on a sustained basis. Despite currency headwinds and a tough pipeline comparison, we delivered strong performance."
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