Computing giant, IBM has recorded an increase of 6 per cent in net income during the third quarter of the year due to higher profits.

The company said that it earned $4.04 billion, or $3.68 per share during the third quarter compared to $3.82 billion, or $3.33 per share recorded during the same quarter of the previous year. The company also said that it earned $3.99 per share excluding onetime charges.

On the other hand, the revenues of the company fell 4 per cent to $23.7 billion from $24.7 billion.

The company's services business fell 3 per cent, Systems and technology revenue fell 17 per cent and Software revenue rose 1 per cent. The company said that after adjusting for the effects of foreign currency exchange rates, the revenues fell 2 per cent during the quarter.

The company's profits were higher than $3.96 per share expected in a poll of analysts conducted by FactSet but its revenues fell short of expectations. The company has said that it expects 2013 profit to be around$16.90 per share, which is higher than $16.87 per share expected by analysts.

The shares of the company fell 6 per cent in extended trading. The International Business Machines Corporation is the world's largest technology-services company.