Like Intel, IBM is a bellwether for the whole tech industry. And like the chip maker yesterday, it sees things on the up.

For the IBM’s June quarter, revenue dropped 13% over the year-ago period to $US23.25 billion.

But better margins in software and services meant profit rose 12% to $US3.1 billion.

IBM has steadily weaned its dependence on the more cyclical hardware market this decade. Around 40% of the company’s revenue, and 60% of its profit, now come from software and services.

The company says it is no “ahead of pace” to achieve its full-year income target, raising its 2009 profit forecast from $US9.20 a share to “at least $9.70”.

IBM shares (NYSE: IBM) were up 3.19% in regular trading, and another 1.73% after hours.