IBM sees healthy increase in earnings

IBM, the world's largest technology services company, reported higher first-quarter earnings on Tuesday as sales of software and computer services increased.

Net income rose to $1.84bn, or $1.21 per share, from $1.71bn, or $1.08 per share, a year earlier. Revenue climbed to $22bn from $20.7bn, IBM said.

Analysts, on average, expected earnings of $1.21 per share on revenue of $21.9bn, according to Reuters Estimates.

Last year, IBM paid nearly $5bn for 13 acquisitions to boost sales of software and services.

Shares of IBM are down 2.3 percent this year amid investor concern over revenue and profit growth for 2007.

The stock trades at about 14 times estimated 2007 earnings per share, compared with an average multiple of about 15 for companies on the Standard &Poor's 500 Index, including competitor HP.

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