IBM (NYSE: IBM) shares gave up all of the 2.3 percent intra-day gain after the close Tuesday following the release of first-quarter results which beat on the bottom line but missed on the top line.

Revenue for the quarter was flat at $24.7 billion, or up 1 percent when adjusted for currency. Wall Street was calling for revenue of $24.77 billion. Software revenue rose 5 percent, while Service revenue rose 1 percent. The services backlog fell 2 percent to $139 billion, but was up 1 percent on a currency basis.

Non-GAAP net income rose 9 percent to $3.3 billion. Non-GAAP EPS rose 15 percent to $2.78, which easily topped the Wall Street consensus of $2.65.

Other financial metrics included: gross profit margin rose 0.9 percent to 45.1 percent and operating gross profit margin was 45.7, up 1.2 percent. Free cash flow rose $1.1 billion to $1.9 billion.

"In the first quarter, we drove strong profit and earnings per share growth. We delivered another excellent software performance, expanded services margins, and continued the momentum in our growth initiatives," said Ginni Rometty, IBM president and chief executive officer. "Our investments in growth market countries continued to generate strong revenue growth across software, hardware and services while contributing to the company’s ongoing margin expansion."

IBM raised 2012 EPS guidance to "at least $15.00," which compares to the consensus of $14.93 and was up from a prior outlook of "at least $14.85."

Shares of IBM last traded at $203.39, versus the New York close of $207.45.

Earnings