For the first quarter of 2012, IBM reported virtually no revenue growth from a year earlier, though the company posted solid gains in both net income and earnings per share. IBM reported revenue of US$24.7 billion, 0.3 percent above the $24.6 billion reported for last year's first quarter. Net income was $3.1 billion, up 7 percent from the $2.9 billion a year earlier. Earnings were $2.61 per share, a 13 percent improvement from $2.31 per share in the first quarter of 2011.

Software provided a solid increase in revenue during the quarter. IBM generated $5.6 billion for the quarter from software, an increase of 5 percent. Sales of IBM middleware -- such as the company's WebSphere, Tivoli, Lotus and Rational products -- were particularly strong, accounting for $3.5 billion in sales, an increase of 7 percent.

IBM's hardware sales did not fare as well. Revenue from the Systems and Technology division totalled $3.7 billion for the quarter, down 7 percent. Revenue from System z mainframe server products dropped by 25 percent, while revenue from Power systems and System x systems was flat from a year earlier.

The services divisions delivered mixed results. The Global Technology Services segment generated $10 billion in revenue, an increase of 2 percent from a year earlier. The Global Business Services segment generated $4.6 billion, down 2 percent.

Emerging markets continue to provide growth for the company. Collectively, the revenue for Brazil, Russia, India and China increased 10 percent for the quarter, while the Americas saw an increase in revenue of only 1 percent from the same time in 2011. Asia-Pacific revenue increased 4 percent.