Feeds

HP's Q2 beats targets, but Q3 and Q4 look tight

Services biz restructured

Beginner's guide to SSL certificates

(Small) Itanium uptick

Business Critical Systems, which peddles Itanium-based machines, had a mere one per cent uptick, to $546m. HP's StorageWorks disk and tape storage business showed three per cent growth, to $980m.

HP Software, the place where Apotheker is obviously keen to boost revenues and profits, had a 17 per cent revenue jump in the second fiscal quarter, to $764m, with licenses representing about 35 per cent of that pie and growing at 29 per cent, year-on-year.

Support revenue was just under half of total software sales, and was up eight per cent. But operating earnings from HP Software fell by 7.8 per cent, to $154m, and you can bet that Apotheker is none too happy about that.

On the PC front, consumer PC sales fell 23 per cent, but corporate PC sales rose by 13 per cent. (HP does not provide revenues across these two customer segments.) HP's notebook sales across all customers were down 9 per cent, to just over $5bn, and desktop sales fell by four per cent, to $3.64bn.

Workstation sales are booming, up 28 per cent in the quarter, to $541m, and other devices accounted for $194m, down seven per cent. HP's overall PC sales came to $9.42bn, down 5.4 per cent, and despite all the bad news, operating earnings for Personal Systems Group rose by 14.5 per cent, to $533m.

To sum it up: HP is not going to spin out its PC business any time soon,

That leaves the bedrock Imaging and Printing Group, which makes the ink that is effectively cash in a plastic canister. IPG had $6.75bn in sales, up 5.5 per cent, and operating earnings of $1.14bn, up only 4.2 per cent. (Wall Street is nervous about that as well.) In the call, HP said that printer supply revenues rose by seven per cent, and total printer hardware units shipped in the quarter were up 12 percent. Both consumer and commercial printer units saw a four per cent bump in Q2, and color LaserJet sales were up 26 per cent and multi-function printers had a 60 per cent jump.

HP Financial Services, which is held separately from the other services units and which provides financing for HP's wares, had 885m in sales (up 17.2 per cent) and operating earnings of $83m (up 20.3 per cent). If you are working at HP and looking for a bonus and a place where the new boss is not going to scream at you, HP Financial Services is the place to be.

HP also updated its guidance this morning, and now says it expects sales of $31.1bn to $31.3bn in the third quarter and GAAP earnings per share of around 90 cents. For the full year, HP expects $129bn to $130bn in sales and GAAP earnings of $4.27 per share and non-GAAP earnings of $5.00 per share.

That's about $1bn to $1.5bn less revenue for fiscal 2011 than HP's latest revised forecast, and about $700m of that will hit in the second half of the fiscal year – about two thirds of it in the third quarter ending in July, according to Cathie Lesjak, HP's CFO.

That revenue decline is caused by reduced business in Japan, supply chain issues in Japan, and the consumer PC sales slowdown. ®

The next step in data security

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
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Bono: Apple will sort out monetising music where the labels failed
Remastered so hard it would be difficult or impossible to master it again
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
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?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.