New York  - IBM reported a 13-per-cent decline in revenue in its second quarter but beat earnings expectations and raised its profit outlook for the full fiscal year.

Together with a positive earnings outlook from chip heavyweight Intel earlier in the week, IBM's announcement bolstered confidence that the technology sector could be recovering from the worst of the global recession.

The enterprise-technology giant said it had revenue of 23.3 billion dollars, down from 26.8 billion dollars a year ago, as companies cut their technology spending. Net profit for the quarter rose to 3.1 billion dollars from 2.8 billion dollars in the year-ago quarter.

The company raised its earnings outlook for 2009 to at least 9.70 dollars a share, up from its previous forecast of 9.20 dollars a share.

IBM chief executive Samuel Palmisano said the positive outlook was a sign that the company's strategic shift in recent years away from hardware sales to technology services, outsourcing and consulting was paying off.

"We are optimistic about how IBM is positioned to make the most of current growth opportunities as well as those that emerge as the economy recovers," he said. (dpa)