Feeds

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

Enjoys top revenue rise since 2000

  • alert
  • submit to reddit

Beginner's guide to SSL certificates

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. ®

Remote control for virtualized desktops

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Big Content outs piracy hotbeds: São Paulo, Beijing ... TORONTO?
MPAA calls Canadians a bunch of bootlegging movie thieves
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
Just don't blame Bono! Apple iTunes music sales PLUMMET
Cupertino revenue hit by cheapo downloads, says report
Hungary's internet tax cannot be allowed to set a precedent, says EC
More protests planned against giga-tariff for Tuesday evening
US court SHUTS DOWN 'scammers posing as Microsoft, Facebook support staff'
Netizens allegedly duped into paying for bogus tech advice
Verizon bankrolls tech news site, bans tech's biggest stories
No agenda here. Just don't ever mention Net neutrality or spying, ok?
prev story

Whitepapers

Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
New hybrid storage solutions
Tackling data challenges through emerging hybrid storage solutions that enable optimum database performance whilst managing costs and increasingly large data stores.
Website security in corporate America
Find out how you rank among other IT managers testing your website's vulnerabilities.