New York  - International Business Machines said its first- quarter earnings slipped just 1 per cent as heavy cost-cutting minimized the earnings impact of a sharp drop in revenue.

The New York-based technology conglomerate said it earned 2.3 billion dollars in the quarter, compared to 2.32 billion dollars a year ago. Global revenues fell 11 per cent 21.7 billion dollars with sales down just 7 per cent in North America, 12 per cent in emerging markets and 18 per cent in Europe, the Middle East and Africa.

"IBM continued to perform well in a very difficult economic environment," chief executive Samuel Palmisano said. "This was due to our long-term strategic focus: shifting into software and services, divesting of commodity businesses and creating solutions that help clients reduce cost and conserve capital."

IBM has announced some 9,000 job cuts this year. (dpa)