IBM reported its first quarter 2009 earnings this afternoon, posting diluted earnings of $1.70 per share compared with diluted earnings of $1.64 per share in the first quarter of 2008, an increase of 4 percent. First-quarter net profit fell one percent to $2.30 billion from $2.32 billion in the first quarter of 2008. Total revenue for the first quarter decreased by 11 percent, to $21.7 billion from the first quarter of 2008. Analysts expected first quarter earnings of $1.66 a share on revenue of $22.5 billion.

IBM said that it expects to report 2009 earnings of at least $9.20 a share.

IBM CFO Mark Loughridge said that sales of the companies software and services helped IBM weather the economic environment. Hardware was hit harder, according to the company.