Feeds

HP floats Q4 profit on services biz

Everything else takes a swim

Website security in corporate America

Hewlett-Packard's profits grew 14 per cent in the fiscal fourth quarter, boosted by corporate cost-cutting and solid performance by its enormous services unit.

The vendor's successes helped offset major losses in revenue in just about everything that's not services, including consumer PCs; enterprise storage and servers; software; and printing.

For the quarter ended October 31, HP reported a net profit of $2.4bn, versus $2.1bn in Q4 2008. Net revenue was $30.8bn, down eight per cent from the same period last year.

Of all HP's operations, only services and - to a much smaller degree- financial services saw an increase in revenue during the quarter. Revenue in the services biz rose eight per cent to $8.9bn. During an investor conference call Monday, HP chieftain Mark Hurd said the acquisition of EDS last year has provided an "enormous asset" the company is just beginning to leverage.

Meanwhile, earnings from HP's bread-and-butter personal systems group declined 12 per cent, to $9.86bn. The drop in revenue came despite an increase of unit shipments of eight per cent during the quarter. It was enough to maintain the vendor's leading market share in PCs worldwide, but the market's love for small and cheap computers took a big bite out of HP's margins.

Following the trend was Enterprise Storage and Servers dropping 17 per cent to $4.2bn. HP Software declined 16 per cent to $967m. Imaging and Printing fell 15 per cent to $6.45bn.

Hurd said several times during the investor powwow that HP is in the process of "reinvigorating" its printing business and that it will be in much better shape going into 2010. In addition to pushing print-on-demand kiosks in places like Walmart, Tesco, and K-Mart Australia, the company will invest into areas such as wireless printing and multi-function printers.

Looking globally, HP's overall revenues decreased three per cent in the Americas. Asia Pacific fared better with a one per cent drop. Europe, Middle East, and Africa revenues took a 17 per tumble.

For the first fiscal quarter of 2010, HP estimates revenue of between $29.6bn and $29.9bn. Looking further into its crystal ball, HP predicts full-year 2010 revenue will be between $118bn to $119bn, up from previous estimates topping out at $118bn. But those estimates don't include the impact on its business from buying 3Com, HP said. ®

Reducing the cost and complexity of web vulnerability management

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Israeli spies rebel over mass-snooping on innocent Palestinians
'Disciplinary treatment will be sharp and clear' vow spy-chiefs
Apple CEO Tim Cook: TV is TERRIBLE and stuck in the 1970s
The iKing thinks telly is far too fiddly and ugly – basically, iTunes
Huawei ditches new Windows Phone mobe plans, blames poor sales
Giganto mobe firm slams door shut on Microsoft. OH DEAR
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Show us your Five-Eyes SECRETS says Privacy International
Refusal to disclose GCHQ canteen menus and prices triggers Euro Human Rights Court action
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.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.
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.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.