7 of 8
Sales: $23.3 billion, down 13%
Profit: $3.1 billion, up 12%

It looks like IBM picked a good time to get out of the consumer market.

No longer a PC maker, IBM continues to change with the times, redefining itself as a services company. Though it is still the largest server maker in the world, IBM has shifted its focus away from hardware, notably marketing its new "Smarter Planet" campaign.

That appears to have been a good move -- the company's hardware sales fell 26% last quarter. Still, even services revenue was weak, as businesses continued to rein in their spending.

But with an increased focus on public sector services, like its recently announced smart rail, health care and traffic congestion projects, IBM said it is well positioned to tap into federal stimulus funds that have yet to be rolled out.

As a result, IBM raised its full-year profit outlook, and said the company is ahead of pace to record earnings of at least $10 per share next year.

NEXT: Amazon.com
Last updated July 24 2009: 4:51 PM ET
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