Feeds

HP profits propagate

Puts pressure on pesky pensions

High performance access to file storage

HP reported a 26 per cent hike in quarterly profits on Tuesday, underscoring its advantage over Dell.

The printer and PC units in particular cranked net income to $1.55bn, or $0.55 per share, on revenues of $25.1bn, for the three months to January 31. For the same period a year ago revenues were 11 per cent lower at $22.7bn, netting a profit of $1.23bn, or $0.42 per share.

The venerable IT giant sought to show Wall Street how mean it is with the latest in its series of employee-squeezing savings measures.

HP will offer an unspecified number of its older staff an exit with a new program of early retirements. New retirees will be also faced with changes to the company pension scheme though, which are aimed at slashing $500m from the bill to lean up in the tussle with Dell. HP described the pension squeeze as "curtailment gain".

Away from irritations over paying employees, HP's PC unit grew quarterly sales 17 per cent on a year earlier to $8.7bn, with notebook sales spiking more than 40 per cent. In the standard earnings call with analysts, Hurd said: "We had good strength, colored by consumer sales...we felt we were especially strong in notebooks and emerging markets, too." Hurd said he plans to continue to undercut rivals.

Such news will do little to cheer the mood at Dell, which has seen faltering PC sales through its direct model behind a recent run of financial disappointments.

Elsewhere, imaging and printing grew 7 per cent to $7bn and storage and servers grew by 5 per cent overall. The weaker 3 per cent increase in storage was buoyed by 10 per cent rise in server revenues. The software division was up to $550m, or 7 per cent excluding the effect of the Mercury acquisition. The services division, which brings in the tastiest margin, increased revenues by 5 per cent to $3.9bn.

HP's financial report is here . ®

High performance access to file storage

More from The Register

next story
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Nokia offers 'voluntary retirement' to 6,000+ Indian employees
India's 'predictability and stability' cited as mobe-maker's tax payment deadline nears
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
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
France bans managers from contacting workers outside business hours
«Email? Mais non ... il est plus tard que six heures du soir!»
Adrian Mole author Sue Townsend dies at 68
RIP Blighty's best-selling author of the 1980s
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Analysts: Bright future for smartphones, tablets, wearables
There's plenty of good money to be made if you stay out of the PC market
prev story

Whitepapers

Mainstay ROI - Does application security pay?
In this whitepaper learn how you and your enterprise might benefit from better software security.
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.
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.
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.