Feeds

HP redeems pride with strong Q4

Billion dollar printer profit steadies the ship

  • alert
  • submit to reddit

New hybrid storage solutions

HP delivered a solid fourth quarter when it needed it most, posting gains in all of its major businesses and reversing the effects of ordering system problems that plagued it one quarter earlier.

HP stormed into the fourth quarter looking for redemption. The company's server and storage businesses took major hits in the third quarter when an ordering system collapsed and disrupted sales to numerous customers. The operational problems overshadowed an otherwise decent quarter. This time, there were no internal collapses to dampen a nice fourth quarter performance.

"Despite the challenges of the third quarter, we made solid progress on many fronts during the year," said CEO Carly Fiorina, during a conference call that discussed HP's performance.

In the fourth quarter, HP reported revenue of $21.4bn - an 8 percent year-over-year increase. It also reported an operating profit of $1.29bn versus $1.07bn in the same period last year. Over the full year, HP posted revenue of $80bn in fiscal 2004, which compares to $73bn in 2003. HP showed net earnings of $3.5bn in 2004, which compares to $2.5bn in 2003. In it most recent quarter, HP benefitted from the obvious corrections made to its server ordering system, a weak US dollar and an healthier overall corporate spending climate.

"I think, at this juncture, what we are seeing is an improving enterprise market, and, you know, a so-so consumer market," Fiorina said. "I wouldn't call (the consumer market) weak, but I wouldn't call it spectacular."

HP's ESS (Enterprise Storage and Servers) business, which oscillates between the red and the black, landed in the black this quarter. The group reported revenue of $4.1bn, which is a 7 percent year-over-year rise. Intel and AMD-based server revenue jumped 16 percent and Unix/Itanium server revenue rose 3 percent. Storage revenue remained down, falling 9 percent. Overall, the unit managed to post a $107m profit.

HP's much-envied Imaging and Printing business pulled in $6.5bn in revenue - a 5 percent year-over-year rise. The unit produced a stunning $1.1bn profit.

HP's PC group reported a 9 percent rise in revenue to $6.5bn and a profit of $78m. The software unit posted revenue of $277m with a 25 percent improvement in sales an a loss of $5m. HP's services business grew 13 percent to $3.7bn with a $367m profit.

HP expects first half 2005 revenue to come between $41.8bn and $42.3bn.

Investors rewarded HP for its fourth quarter performance by sending shares up 8 percent, at the time of this report, in the after-hours markets. ®

Related stories

Dell, AMD make Friday bull run
Dell gets meagre $240m package for North Carolina plant
Sun kicks off fiscal '05 with a $174m loss
Compaq's servers save HP from enterprise sales hell
Apple iPod grabs 82% US retail market share

The next step in data security

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Protecting users from Firesheep and other Sidejacking attacks with SSL
Discussing the vulnerabilities inherent in Wi-Fi networks, and how using TLS/SSL for your entire site will assure security.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.