US computer giant IBM, which employs more than 2,500 people in Ireland, has reported flat second-quarter net profits and a slight decline in sales. But the results still topped analysts' expectations by a small amount.

Income at the world's largest computer company rose just 0.4 per cent to $1.5 billion (£1.07 billion) compared with $1.4 billion in the same period last year. Revenue dipped to $18.8 billion, down $49 million.

Revenues from Europe, the Middle East and Africa were up 2 per cent, but rose 5 per cent when currency effects were excluded. A spokesman said IBM was on course to double its current workforce of 600 within the next year at a customer sales and support centre in Ballycoolin, Dublin.