Feeds

HP uses layoffs to draw thicker black line in Q1

Neat and tidy

Build a business case: developing custom apps

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. ®

The essential guide to IT transformation

More from The Register

next story
True fact: 1 in 4 Brits are now TERRORISTS
YouGov poll reveals terrible truth about the enemy within
Microsoft exits climate denier lobby group
ALEC will have to do without Redmond, it seems
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
BYOD's dark side: Data protection
An endpoint data protection solution that adds value to the user and the organization so it can protect itself from data loss as well as leverage corporate data.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?