Feeds

HP prints its way to profit in Q1

Servers and PCs do their part

  • alert
  • submit to reddit

Combat fraud and increase customer satisfaction

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. ®

Combat fraud and increase customer satisfaction

Whitepapers

Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
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.