IBM Corp. (NYSE: IBM) reported its second-quarter results today, with services and high-end zSeries mainframes helping drive revenues for continuing operations up to $23.2 billion, a 7 percent increase on the second quarter of 2003.
Speaking just after market close yesterday, Big Blue chief financial officer Mark Loughridge said that overall revenues from IBMs Systems & Technology division were $4.2 billion, up 10 percent on the same period last year.
Within the division, zSeries led the way, notching up revenue growth of 44 percent. IBM's xSeries servers registered 18 percent growth in the quarter.
2004 marks the 40-year anniversary of the mainframe, and the zSeries platform has been a major focus for IBM over the last few months. In April, for example, IBM unveiled a scaled-down mainframe, the z890 (see IBM Celebrates a Birthday and IBM Unveils Mid-Sized Mainframe).
But it has not been all plain sailing in the hardware space. Loughridge explained that IBMs plans to converge its iSeries and pSeries server lines around Power5 processors had a negative affect on sales. In May, IBM launched its first Power5-based servers, the i5 models 520 and 570 (see IBM Launches Power5 Server).
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