IBM experienced a drop-off in revenue through the latest quarter, though it was able to increase profits.
For the second quarter, IBM generated US$25.8bn (£16.4bn) in revenue, down 3 per cent from same period last year.
Revenue fell short of estimates by analysts, who, according to Thompson Reuters, expected to see $26.28bn (£16.78), or only a 1.5 per cent decrease.
Despite the dip in revenue, the company remained buoyant by other financial measures.
Net income was $3.9bn, up from $3.7bn in the second quarter of 2011. Earnings rose to $3.34 per share, an 11 per cent increase from $3.00 per share in the second quarter of 2011.
As a result, the company has raised its EPS estimate for the full year to at least $15.10, from a previously estimated $15.
"IBM's business model enabled our strong profit performance in the current environment," said IBM Chief Financial Officer Mark Loughridge in a conference call with financial analysts.
He attributed the results to a number of factors.
This quarter's results are being compared to an exceptionally strong performance in the second quarter of 2011.
"We had a challenging compare," he said.
In addition, global currency fluctuations cost IBM about $1bn in revenue, he added.
Revenue by geographical region varied greatly. Revenue in the Americas was $11.1bn, down 1 per cent from a year earlier.
Revenue from Europe, the Middle East and Africa was $7.9bn, down 9 per cent from a year earlier. The Asia-Pacific region proved to be a bright spot, producing $6.3bn in revenue, up by 2 per cent from a year earlier.
The service arms of IBM experienced a slump in revenue, down by 3 per cent from a year earlier.
Global Technology Services logged $10bn, a decrease of 2 per cent. And Global Business Services posted $4.7bn in revenue, a dip of 4 per cent from a year earlier.
IBM software sales, on the whole, were flat. Software revenue totalled $6.2bn.
Both middleware and operating systems showed no growth in revenue, though Websphere revenue grew by 3 per cent from the same time a year earlier.
On the other hand, Lotus software revenue decreased 8 per cent, and Rational software decreased 7 per cent, both year over year.
Hardware sales didn't do so well either. Revenue from the Systems and Technology division totaled $4.3bn for the quarter, down 9 per cent year over year.
Total revenue from systems sales and service were down 7 per cent from a year earlier. Power Systems revenue was down 7 per cent. System x revenue was down 8 per cent from a year earlier. System z mainframe server revenue decreased by 11 per cent.
In the conference call, Loughridge talked up the growth of some of IBM's technology initiatives. Revenue in business analytics was up 13 per cent from a year earlier.
Revenue from cloud computing initiatives doubled for the year, when compared with the first half of 2011. And revenue from work in Smarter Planet initiatives was up by 20 per cent.
IBM did not break out specific revenue numbers for any of these initiatives.