FINANCIAL HIGHLIGHTS

• Diluted earnings per share of $1.97, up 16 percent;
• Revenue of $22.9 billion, up 5 percent, flat adjusting for currency;
• Net income of $2.6 billion, up 13 percent;
• Pre-tax income of $3.5 billion, up 13 percent;
• Pre-tax margin of 15.4 percent, up 1 point;
• Gross profit margin of 43.6 percent, up 0.2 point;
• Free cash flow of $1.4 billion, up approximately $400 million;
• Software revenue up 11 percent;
• Systems and Technology revenue up 5 percent;
• Services revenue up 4 percent;
• Services signings of $12.3 billion, down 2 percent;
• Consulting services signings up 18 percent;
• Strategic Outsourcing signings up 6 percent;
• Services backlog of $134 billion, up $8 billion year to year;
• Full-year 2010 earnings-per-share expectations raised to at least $11.20.

http://www-03.ibm.com/press/us/en/pressrelease/29942.wss