International Business Machines Corp.'s second-quarter profit rose 12% as the company continued to hone its operations, but sales fell and the technology giant offered few signs businesses are prepared to resume spending.

IBM, which also raised its profit outlook for the full year, is benefiting from cost cutting and a shift to a richer business mix that includes more software sales and consulting contracts far removed from its traditional sales to corporate data centers -- such as helping utilities manage electrical grids.

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