IBM reported revenues of $21.7bn for the first quarter of 2009,a drop of 11% compared to the first quarter of 2008. IBM ended the first quarter of 2009 with $12.3bn of cash in hand and generated free cash flow of $1.0bn, up $450m year over year.
The company stated that Global Business Services revenues decreased 10% to $4.4bn. IBM signed services contracts totalling $12.5bn, including 16 contracts greater than $100m.
Revenues from the software segment were $4.5bn, a decrease of 6%. However, the company said revenues from its rational software, integrated tools to improve the processes of software development, increased 9%.
"IBM continued to perform well in a very difficult economic environment. This was due to our long-term strategic focus: shifting into software and services, divesting of commodity businesses, and creating solutions that help clients reduce cost and conserve capital. At the same time we have a disciplined approach to cost and expense management giving us a strong financial position," said Samuel J Palmisano, IBM chairman, president and chief executive officer.