IBM has raised its full-year operating earnings per share expectations after reporting 12% surge in second-quarter revenues and 8% growth in net income.

In its 2Q 2011 results, the 100-year-old company registered total revenues of $26.7bn, an increase of 12%. Net income reached $3.7bn, compared with $3.4bn in 2Q 2010.

The company said that its non-GAAP operating net income growth was higher at $3.8bn compared with $3.4bn in 2Q 2010, an increase of 11%.

IBM has announced 2Q 2011 diluted earnings of $3.00 per share, compared with diluted earnings of $2.61 per share in the 2Q 2010, an increase of 15%.

Operating (non-GAAP) diluted earnings were $3.09 per share, compared with operating diluted earnings of $2.62 per share in the second quarter of 2010, an increase of 18 percent.

IBM chairman president and chief executive officer Samuel J. Palmisano said that long-term strategic investments in the company’s growth initiatives again helped drive strong revenue performance.

Palmisano said, "Hardware, software and services revenue grew at double digits, and we achieved strong profit and free cash flow growth.

"As IBM begins its second century, we continue a process of transformation, positioning the company to lead in the future and deliver higher value to our clients and our shareholders. Given our strong start to 2011, we are raising our full-year operating earnings per share expectations to at least $13.25."

The company’s mainframe business saw robust growth registering a 61% surge.

Chief financial officer Mark Loughridge told the Financial Times that the 68 new mainframe customers would add to the company’s other business such as services and software.

"Goodness gracious, when you’re up 61 per cent, that’s a pretty powerful quarter in the mainframe business," he said.

Both software and hardware sales rose 17% compared with the same period of last year, to $6.2bn and $4.7bn respectively.

While Power Systems revenue grew 12%, the company said its business analytics revenue also grew more than 20% in the first half.

The company’s Smarter Planet revenue was up more than 50% in the first half and IBM said its cloud-computing revenue is on track to double in 2011.

Growth markets represented over a fifth of IBM’s total geographic revenue.