IBM said Monday its first quarter sales fell better than expected from Reuters Analysts' average forecast of $22.56 billion, however earning per share rose to 1.70 from $1.64.

First quarterly revenue fell 11 percent to $21.71 billion and Net profit for the quarter ended March 31, 2009 decline 1 percent to $2.30 billion.

In the same period last year, it posted revenue of $24.50 billion and net profit of $2.32 billion.

IBM also said its earnings per share remains “ahead of pace for our 2010 roadmap of $10 to $11 per share,” and expects full-year 2009 forecast of at least $9.20 a share.

Recently, IBM–Sun talks broke down after Sun rejected an offer of about $9.40, a share price it regarded as too low from the original $10 a share, has acquired by Oracle for $7.4 billion, or $5.6 billion net of cash and debt.

It also reported cash on hand after the quarter end were $12.3 billion and Debt totaled of $31 billion, down from $33.9 billion at year end.

Shares drop 84 cents to $0.83 Percent at $100.43 in the late trading.

Ibm