Feeds

HP uses layoffs to draw thicker black line in Q1

Neat and tidy

Intelligent flash storage arrays

Cost-cutting measures and steady sales across its major product lines carried HP to a tidy first quarter.

The giant posted a six per cent year-over-year revenue increase to $22.7bn. More impressive was a 30 per cent net income boost to $1.2bn. That led to an equal rise in earnings per share to 42 cents from 32 cents in the same period last year.

"We are continuing to deliver on our plan to strengthen HP and better serve our customers," CEO Mark Hurd said. "Growth was balanced across most of our businesses and geographies, cash flow was strong and we were disciplined in controlling costs. While hard work remains ahead of us, our efforts are starting to show results."

The Americas proved most rewarding to HP during the first quarter with revenue rising 10 per cent to $9.7bn. EMEA revenue came in flat at $9.4bn, and Asia Pacific revenue jumped 6 per cent to $3.5bn.

There were no super performers on the product side of the house, although most of the groups turned in decent results.

The Personal Systems unit saw revenue rise 8 per cent to $7.4bn. Falling desktop sales were offset by a huge jump in notebook sales. This group reported a $293m profit.

The Imaging and Printing folk managed to push revenue higher by 8 per cent to $6.5bn. Laser printers and ink did the dirty work, and HP captured a $973m profit from this unit.

The Enterprise Hardware crowd posted a 5 per cent revenue rise to $4.2bn. Increases in x86 server sales and storage led this unit, which posted a profit of $326m.

The only unit to disappoint was the Services group, which watched sales drop 2 per cent to $3.8bn.

Aided by acquisitions, HP's software unit pulled in $304m – a 29 per cent rise.

The single-digit gains in product sales did less to impress investors than HP's improved bottom line. Layoffs were the primary factor behind the higher profits. Shares of HP rose more than 3 per cent in after-hours trading to $32.80.

HP is looking for revenue to come in between $22.4bn and $22.6bn in the second quarter. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Spies, avert eyes! Tim Berners-Lee demands a UK digital bill of rights
Lobbies tetchy MPs 'to end indiscriminate online surveillance'
How the FLAC do I tell MP3s from lossless audio?
Can you hear the difference? Can anyone?
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
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.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.