HP posts strong second quarter

Revenues up 11 per cent

Shaun Nichols in California, vnunet.com 21 May 2008

HP has released its latest quarterly financials, reporting an 11 per cent boost in revenues.

The company logged $2.6bn in profits on total income of just over $28.2bn.

"HP turned in another strong quarter, supported by improvement across our businesses," said HP chief executive Mark Hurd.

"With 70 per cent of revenue now coming from outside the US, we benefited from robust demand in emerging economies. HP's financial outlook demonstrates its strength in the global marketplace."

More than $10bn of the vendor's quarterly revenues came from its Personal Systems Group, the branch responsible for desktop and notebook PCs.

Revenue from the group grew by 16 per cent over last year, and unit shipments rose by 21 per cent.

HP's imaging and printing operation also had a strong quarter. The unit brought in some $7.6bn in revenues, representing a six per cent increase over the previous year's quarter.

Revenue from commercial hardware also rose by six per cent, but consumer hardware revenues fell by three per cent.

Hurd also credited the strong quarterly figures to a series of ongoing cost-cutting measures.

"We have become more efficient, and I am pleased with our performance, but do not be confused," he told analysts.

"Our cost initiatives are significant and ongoing, and we expect them to create additional leverage in our operating model."

Hurd also addressed HP's impending $13.9bn acquisition of outsourcing giant EDS.

"As I have said before, we are a great engineering company and great customer support company, but we have a market coverage problem," he said.

"I have spoken to you many times about our efforts to improve our enterprise account presence, especially in the US.

"We expect the EDS deal to significantly improve our enterprise 'share of wallet' and create a platform that gives us opportunities for new business growth."

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