Feeds

HP prints its way to profit in Q1

Servers and PCs do their part

  • alert
  • submit to reddit

High performance access to file storage

HP's first quarter proved that printing and imaging products drive the company's growth but also that other parts of its business can chip in at times.

HP reported $19.5bn in revenue for the period ended January 31. This is a nine per cent rise year-on-year and matches guidance given last week by HP. The operating profit gains were more impressive, as HP showed a 30 per cent rise to $1.1bn in profit.

"HP delivered a solid quarter," said Carly Fiorina, HP's chairman and chief executive officer. "In a seasonally weak period we demonstrated HP's earnings potential with our most balanced profit performance since the merger.

HP's imaging and printing unit pulled in $5.9bn in revenue for the first quarter and contributed a stunning $968 million to the operating profit total. Both the revenue and profit increased six per cent year-on-year.

But printing profits from HP are hardly a surprise. Investors have been more interested in HP's hardware and PC businesses to see if they could keep up recent momentum.

The hardware group did its bit, growing revenue five per cent to $3.9bn. The group also posted a $108m profit, which is a massive $190m improvement over the same quarter a year ago. Intel-based servers lead the gains, while Unix sales slowed. Both storage and software were also up in the quarter.

The personal systems or PC unit pumped out $6.2m in revenue and an operating profit of $62m in the quarter. That total sets a quarterly profit record for HP since it acquired Compaq.

HP was pleased with these results, but they still do not stack up too well against rival Dell. In its fourth quarter, typically a much stronger period than Q1 as in HP's case, Dell posted net income of $749m, almost purely on PC, server and storage sales. This compares to just $170m from the comparable units at HP.

And away from hardware, HP did not fair as well in its first quarter. The company saw its services unit pull in $3.2bn in revenue - a six per cent year-on-year rise. The group's operating profit, however, fell 11 per cent to $258m. HP's financial services business also slumped, as revenue dropped 15 per cent to $441m.

For its second quarter, HP expects revenue between $19.2bn and $19.6bn. ®

High performance access to file storage

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Sorry London, Europe's top tech city is Munich
New 'Atlas of ICT Activity' finds innovation isn't happening at Silicon Roundabout
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
prev story

Whitepapers

Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.