IBM has continued to outperform its technology peers during the downturn, relying on fatter services and software margins in the first quarter to make up for a continuing slump in hardware sales, its results showed Monday.

Although net income dipped 1 per cent to $2.3bn from a year earlier on an 11 per cent drop in revenue, IBM’s share repurchases from what is now a cash hoard of $12.3bn pushed earnings per share up to $1.70, from $1.64. The stock buyback reduced shares outstanding by 4 per cent.