Feeds

PCs, ink, servers - just about everything boosts HP's Q3

Enjoys top revenue rise since 2000

  • alert
  • submit to reddit

SANS - Survey on application security programs

HP did its double-digit thing during the third quarter with software and PC gains boosting the bottom line.

The company's workmanlike - yeah, we used it - quarter resulted in a 16 per cent year-over-year rise in revenue to $25.4bn. Net income surged as well, rising 29 per cent to $1.8bn. That's a healthy chunk of change.

"We had our strongest revenue growth since 2000," said HP's CEO Mark Hurd, during a conference call.

Hurd didn't say a whole lot right after that, as HP's phone line to reporters and analysts died. After about five minutes, his Hurdness returned, saying "Telephonic technology has not quite caught with the opportunity here."

And here we thought the market for earnings conference calls was already well taken care of. But we digress.

HP's revenue and units grew in every year region. The company noted that it received a boost from low component costs and cited strong, broad demand for its sparkling third quarter.

HP's Personal Systems Group - the PC folks - grew revenue 29 per cent year-over-year to $8.9bn. As expected, notebooks did most of the hard work, as sales jumped 54 per cent. Desktop sales increased 12 per cent. All in all, PSG posted a $519m profit - up from $275m in the same period last year.

The Imaging and Printing unit boosted revenue 8 per cent to $6.8bn and turned in a $981m profit, up from $884m.

The server and storage teams did their part as well, hiking revenue 10 per cent to $4.5bn. Sales of x86 servers rose 16 per cent aided by a very robust 81 per cent rise in blade sales. Sales of Itanium servers rose 71 per cent, although high-end system sales dropped 3 per cent overall as PA-RISC and Alpha system sales continued to disappear. Meanwhile, storage revenue increased 6 per cent. Together, the server and storage group turned in a $464m profit - up 7.2 per cent.

The software group - aided by a string of acquisitions - upped revenue 74 per cent to $554m. This unit's profit came in at $81m - up from $13m last year.

HP's core services business grew revenue by 8 per cent to $4.2bn and posted a $430m profit, up from $364m. Financial services rose 12 per cent to $582m.

If you're looking for a big downside to the quarter, you won't find one.

Analysts, however, did try and go negative by asking Hurd if HP expects to be hurt by the recent turmoil in the US financial markets.

HP? Slowdown because of a wobbly US economy? Pah.

"We saw steady growth across all regions and all segments," Hurd said. "I don't have any data that would indicate to me any material change in demand."

Hurd also noted that he's not an economist.

"We have a lot more work to do at HP," Hurd said, returning to his favorite refrain. "We are anything but a finished product at this point."

HP is all about cutting more costs, improving its software business and selling the heck out of gear during its often large fourth quarter.

The company expects fourth quarter revenue to come in between $27bn and $27.2bn.

Shares of HP rose slightly in after-hours trading, following the release of the third quarter results.

Overall, we find an HP that's changed quite a lot. The company used to depend on the printing and imaging unit for its best quarters. Now, however, revenue and profits are well spread across all of the major businesses. Software remains the only real division that needs serious help, and HP has vowed to acquire its way into success there. ®

High performance access to file storage

More from The Register

next story
Sorry London, Europe's top tech city is Munich
New 'Atlas of ICT Activity' finds innovation isn't happening at Silicon Roundabout
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
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
prev story

Whitepapers

Designing a defence for mobile apps
In this whitepaper learn the various considerations for defending mobile applications; from the mobile application architecture itself to the myriad testing technologies needed to properly assess mobile applications risk.
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.
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.
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.