IBM sales increase to $21.4bn

IBM will report net income of 98 cents a share on sales of $21.4 billion, up from three cents and $19.65 billion in the same period a year earlier, according to the average estimates of analysts polled by Thomson.

The year-ago profit was squeezed by costs for cutting jobs and shedding a disc-drive unit. Analysts estimate that revenue rose in software and services.

Computer hardware revenue fell about 2% as companies continue to defer purchases, according to Lehman Brothers Inc analyst Daniel Niles.