IBM has reported flat net profits of$3.8bn as demand for its software services and tight cost management offset the effect of a stronger dollar.
IBM said that,excluding UK pension-related charges,profits rose 3%to$3.9bn in the third quarter.
Revenues at IBM came in at$24.7bn,down 5%on the same period a year ago,or just 2%adjusting for negative currency impact of nearly$1bn.
Currency-adjusted figures show software revenue up 3%;services revenue flat;systems and technology revenue down 12%;and growth markets revenue up 4%.
IBM said business analytics revenue was up 14%year to date;Smarter Planet revenue was up more than 20%year to date;and Cloud revenue year to date had exceeded full-year 2011 revenue.
"In the third quarter,we continued to drive margin,profit and earnings growth through our focus on higher-value businesses,strategic growth initiatives and productivity,"said Ginni Rometty,IBM chairman,president and CEO.
"Looking ahead,we see good opportunity with a strong product lineup heading into this quarter and annuity businesses that provide a solid base of revenue,profit and cash,"Rometty said.
Computer chip maker Intel has reported falls in both sales and profits in the third quarter,saying the results"reflected a continuing tough economic environment".
Last week rival chip maker AMD announced it is expecting a 10%decline in sales in Q3 compared with Q2,ahead of the announcement of third quarter results on 18 October.
